Liberty Mutual Insurance (formally Liberty Mutual Holding Company and its subsidiaries, or LMHC collectively) has published its earnings report for the third quarter of 2024, showing continued improvement from last year’s numbers.
In Q1, the group saw its net income attributable to LMHC soar to US$1.535 billion following a US$74 million loss in 2023. In Q2, net income attributable to LMHC amounted to US$717 million – a turnaround from the company’s previous US$585 million loss.
In the quarter ended September 30, LMHC’s attributable net income grew from US$$219 million in 2023 to US$892 million this time around. The insurer’s total combined ratio in Q3 stood at 96.7%; last year it was 102.6%.
President and chief executive Tim Sweeney (pictured) noted: “For the third quarter, we reported net income attributable to LMHC of US$892 million, reflecting strong underwriting performance in both our US Retail Markets and Global Risk Solutions businesses as well as solid investment results.
“Our targeted underwriting strategies continue to drive strong financial results, with a 4.0-point improvement in the underlying combined ratio to 88.1%. The total combined ratio, including catastrophes and prior year development, was 96.7% for the quarter, a 5.9-point reduction over prior year.”
The CEO went on to highlight: “We continue to make particularly significant progress in US Retail Markets, where our total combined ratio dropped 13.8 points to 94.9%, as earned rate, underwriting actions, and improved frequency trends positively impacted the underlying loss ratio, which improved 10.2 points from prior year.
“Catastrophe losses remained elevated, with consolidated pre-tax net catastrophe losses in the quarter of US$1.1 billion including US$458 million from Hurricane Helene. Investment results in the quarter were strong, driven by higher fixed-income yields and favourable private equity valuations, which contributed to US$1.2 billion of pre-tax net investment income.”
Overall, according to Sweeney, LMHC is focussed on achieving its 95% target combined ratio next year as the “foundation for sustained, profitable growth” for the group.
What do you think about this story? Share your thoughts in the comments below.
