Liberty Mutual’s net income climbs to $717m in Q2

Liberty Mutual Holding Company Inc. (LMHC) has posted a net income of $717 million for the second quarter of 2024, up substantially from the net loss attributable to LMHC of $585 million in the same period in 2023.

At the same time, the organisation posted a 3.3% decrease in net written premium (NWP) at $11.4 million, compared to the $11.8 million figure that the firm posted in the prior year quarter.

The firm’s total revenues were also up slightly by 3.6%, rising to $12.8 million, compared to $12.3 million from 2023.

Pre-tax operating income was up by a notable figure, coming in at $678 million, compared to a $610 million loss from the prior year.

Meanwhile, the organisations total combined ratio for Q2’24 was 99.6%, a 9.8 percentage point difference compared to the previous years 109.4%, while its underlying combined ratio sat at 84% for the quarter, compared to 93.5% from the prior year.

Looking at their results for first half of 2024, LMHC posted a net income of $2.252 billion, a major improvement compared to the $660 million loss that the company reported in the same period in 2023.

In addition, NWP for H1’24 sat at $22.3 million, a 2.5% decrease from the previous years $23 million.

The firm’s total combined ratio for the period sat at 97.7%, a notable improvement from 106.5% in 2023, while its underlying combined ratio came in at 86.2%, compared to 2023’s 94%.

Tim Sweeney, Liberty Mutual President & Chief Executive Officer, commented: “For the second quarter, we reported net income attributable to LMHC of $717 million, reflecting continued improvement in our underlying combined ratio and strong investment results.

“Our underlying combined ratio improved 9.5 points from the prior year to 84.0%. Of that, 7.1 points of improvement resulted from our targeted underwriting strategies improving both personal and commercial lines. In addition, our ongoing expense management program contributed 2.4 points of expense ratio improvement, driving it down to 26.4% for the second quarter and half year.

“Catastrophe losses in the quarter remained elevated, despite improving over prior year, attributable primarily to severe convective storm activity in the US Midwest. Including catastrophes and prior year development, the total combined ratio was 99.6% for the quarter, a 9.8-point improvement over prior year. In addition, investment results in the quarter were strong, benefiting from higher reinvestment rates and favorable private equity valuations, which contributed to $1.3 billion of net investment income.”

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