Liberty Mutual posts $2.22 billion in Q3 profit

Liberty Mutual on Thursday reported third-quarter net income of $2.22 billion, up from $892 million for the year-earlier period, helped by a huge drop in catastrophe losses.

“We delivered exceptional third-quarter results… reflecting strong underwriting and investment performance,” Chairman and CEO Tim Sweeney said in a news release.

The results included a modest improvement in the underlying combined ratio: a 0.7-point drop to 87.4%. The total combined ratio, including catastrophes and prior-year development, was 84.7%.

Catastrophe losses fell 89.5%, to $114 million, compared with last year’s third-quarter figure of $1.08 billion.

“Our combined ratio improved 12.0 points year-over-year, underpinned by favorable frequency trends in U.S. personal lines and lower catastrophe losses across both insurance businesses,” Mr. Sweeney said in the release. “Investment results remained strong, benefiting from higher reinvestment rates and robust performance in private assets, particularly private equity.”