Liberty Mutual posts sharply higher profit

Liberty Mutual Holding Co. Inc. Thursday reported fourth-quarter consolidated net income of $722 million, up from $160 million in the year-earlier period.

Net income for all of 2021 totaled $3.07 billion, up from $758 million.

“2021 was an exciting year for the business,” Liberty Mutual Chairman and CEO David Long said in an earnings webcast with analysts Thursday, noting the company’s strengthened reserves and casualty lines.

Liberty Mutual’s total revenue grew 3.6% in the fourth quarter to $12.22 billion, up from $11.8 billion in the same period in 2020. Revenue for all of 2021 totaled $48.2 billion, up 10.1% from $43.8 billion for the previous year.

The company reported net written premium rose 9.2% to $11.03 billion in the fourth quarter and 7.5% to $43.7 billion for the year.

Net catastrophe losses in the quarter were $143 million, down from $359 million in the year-earlier period, “respecting the lower frequency of events, and also reinsurance recoveries from the attachment to our aggregate cover,” Mr. Long said.

Looking ahead, Mr. Long said, “We’re encouraged by market tailwinds in commercial lines, and although recent headwinds of personal auto are impacting our results, we feel well positioned to address these challenges and profitably grow our business over time.”

The total combined ratio for the fourth quarter improved to 99.2%, from 102.3% in the year-earlier period. The total combined ratio for all of 2021 was 100.8%, compared with 101.8% for 2020.

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