Liberty Mutual’s Q1 premiums, profit fall

Liberty Mutual Holdings Co. Thursday reported first-quarter net income of $1.025 billion, down 33.2% from the prior-year period on lower consolidated net written premiums.

First-quarter revenue of $12.48 billion was up less than 1% from the $12.47 billion reported for the same period last year.

The insurer’s total consolidated net written premiums dropped 1.8% to $10.7 billion from $10.9 billion in the prior-year period. Consolidated net written premiums for U.S. retail markets fell 7.4% to $6 billion from $6.5 billion.

Liberty Mutual’s global risk solutions unit saw a 7.5% increase in net written premiums to $4.7 billion.

“Despite elevated losses, driven by the devastating California wildfires, our total combined ratio including these losses and prior year development was 96.6%,” said Tim Sweeney, Liberty Mutual chairman and CEO. That compared with 95.8% in the year-earlier period.

Renewal rates and retention for the U.S. small commercial business unit increased to 13.2% and 75.6%, respectively, up from 11.4% and 74.6% in last year’s first quarter.