Mercury Insurance will begin providing coverage to thousands of Safeco Insurance customers in California following a shift in Liberty Mutual’s personal lines strategy in the state.
Liberty Mutual, which owns Safeco, plans to wind down certain renters, condo, and auto policies in California. The company will advise its network of independent agents to transfer those policies to Mercury Insurance in an effort to maintain uninterrupted coverage for affected policyholders, according to a news release.
“Mercury and Safeco have long had a healthy, competitive relationship, sharing a common desire to protect California consumers,” said Gabriel Tirador, CEO of Mercury. "When Safeco approached us with the idea of transitioning their impacted customers into our portfolio, we saw an opportunity for Mercury to be there for California consumers and agents when they need us most. The result is a win for everyone – their customers and agents, Safeco and Mercury.”
“We are committed to the California insurance market, and independent agents are critical to achieving sustained success,” said Luke Bills, Liberty Mutual president, independent agent distribution, US retail markets. “This partnership with Mercury ensures they and our customers have a seamless path available for uninterrupted coverage as we focus on our core auto, home, landlord and liability products throughout the state.”
The move marks Mercury’s second such transition in California in recent years. In 2023, the company absorbed personal lines business from Tokio Marine after that insurer exited the state’s market.
Mercury continues to sell homeowners insurance in regions of California where other insurers have scaled back, citing its interest in maintaining market presence despite growing challenges in the state’s insurance sector.
The California Department of Insurance is currently pursuing reforms aimed at stabilizing the market, including efforts under the agency’s “Sustainable Insurance Strategy.”
Both insurers emphasized the importance of independent agents in facilitating the transition. Mercury said it would begin reviewing Safeco-affiliated agents who are not already appointed with the company.
