Liberty Mutual reports strong Q2 results

Liberty Mutual Holding Co. Inc. Thursday reported second-quarter net income of $717 million, compared with a $585 million net loss for the same period in 2023.

Liberty Mutual President and CEO Tim Sweeney, in a conference call with analysts, attributed the turnaround to continued improvement in the insurer’s underlying combined ratio and strong investment results.

“Despite continued pressure from elevated catastrophe activity, we reported strong financial results for the second quarter and first half of 2024,” Mr. Sweeney said.

He said the higher catastrophe losses were due to severe convective storm activity in the Midwest.

Liberty Mutual’s combined ratio for the quarter improved to 99.6%, from 109.4% in last year’s second quarter.

“We remain on track to reach our 95% combined ratio target in 2025, which will position us well for the future,” Mr. Sweeney said.

Total net written premium for the second quarter was $11.4 million, down from $11.8 million in the prior-year quarter.

Second-quarter investment results were strong, Mr. Sweeney said, as Liberty Mutual benefited from higher reinvestment rates and favorable private-equity valuations, which contributed to $1.3 billion of net investment income. That was an increase of $529 million over the year-earlier period.

Mr. Sweeney said Liberty Mutual continues to take a “measured approach” to growth by “selectively targeting new business growth.”