Liberty Mutual enhances reinsurance program ahead of 2025

$2.8 billion limit and aggregate coverage address frequency and severity

Liberty Mutual enhances reinsurance program ahead of 2025

Reinsurance

By Kenneth Araullo

Liberty Mutual provided an update on its reinsurance Property Catastrophe Program, detailing its coverage structure for domestic business as of Jan. 1.

The update comes ahead of the company’s typical annual disclosure of reinsurance arrangements during first-quarter earnings announcements. 

The company reported a US$2.8 billion occurrence limit with a US$1 billion retention, including one reinstatement. Of this amount, US$1.5 billion is available on an all-perils basis.

Additionally, Liberty Mutual disclosed the purchase of an Aggregate Property Catastrophe Program to address both frequency and severity of losses. This program provides US$500 million of coverage above a US$2.4 billion aggregate retention, with a US$100 million per-event deductible. 

In other news, Liberty Mutual announced that Nicole Arangio will assume the role of executive vice president and chief compliance officer (CCO) effective April 1, 2025, following a transition period.

Arangio currently serves as CCO for Global Risk Solutions and Compliance Enablement, where she oversees compliance activities across the company’s global operations. 

The insurer also published its financial results for the third quarter of 2024, showing improved performance compared to the prior year. For the quarter ending Sept. 30, Liberty Mutual Holding Company (LMHC) reported net income attributable to LMHC of US$892 million, up from US$219 million during the same period in 2023. 

The company’s total combined ratio for Q3 stood at 96.7%, compared to 102.6% in the prior year. This continues the trend from earlier in the year, with net income in Q1 reaching US$1.535 billion, following a US$74 million loss in 2023, and Q2 results showing US$717 million in net income, a reversal from a US$585 million loss in the prior year.

“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,” CEO Tim Sweeney said.

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