Car accidents made a serious dent in Boston insurer
Liberty Mutual’s fourth quarter profits as more claims led to higher losses.
In the last three months of 2016, profits dipped 65% to $143 million compared with the same period in 2015 which was pegged at $411 million, according to the company.
However, annual performance remained robust as it booked more than $1 billion in margins, which is nearly double the value recorded in 2015, the Boston Globe said in a report.
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Liberty Mutual chief executive David Long said in the report that distracted driving is a major culprit, as well as the increased number of motorists taking to the roads due to a strong economy, and prohibitively priced safety technology installed in cars.
To cope with increasing costs, Long said that the company has been imposing increases of between 4% and 9% on rates as individuals and businesses renew their policies.
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