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Liberty Mutual has cut cash, short-term portion of holdings recently

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Liberty Mutual has cut cash, short-term portion of holdings recently

Liberty Mutual Holding Co. Inc. has since the recession shrunk its investments in cash and short-term properties by more than half while growing its stake in mortgage loans, according to an S&P Global Market Intelligence analysis.

A report in The Wall Street Journal citing anonymous sources said the company was taking bids for about $1 billion of its private equity and real estate holdings.

If a sale comes to fruition, it could continue a Liberty Mutual investment trend that has seen its stakes in unclassified "other investments" decline overall from a 10-year peak of 7.73% of its holdings in 2011 to 4.30% in 2016. The insurer has maintained its bond investments at between 80% and 84% of its investments since 2007 while compressing a sliver of preferred stock holdings from 1.72% of its investments to 0.73%.

Since 2008, the company's mortgage holdings as a percentage of its investments have grown overall from 2.11% to 3.44%.

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