Liberty Mutual has reported a strong financial performance for 2024, with net income for the year reaching $4.383 billion, a dramatic rise from $213 million in 2023. The fourth quarter alone saw net income of $1.239 billion, nearly doubling the $654 million earned in the same period the previous year. The company attributed its success to disciplined underwriting, operational efficiencies, and an improved combined ratio.
Company President and CEO Tim Sweeney highlighted the financial progress, noting that the combined ratio for the fourth quarter improved to 91.5 percent, the lowest in 20 years. The full-year combined ratio stood at 95.9 percent, a substantial improvement from 102.7 percent in 2023. Sweeney credited the gains to underwriting and expense discipline in both U.S. Retail Markets and Global Risk Solutions, setting a strong foundation for selective growth in the coming years.
Liberty Mutual’s net written premiums (NWP) declined by 6.9 percent in the fourth quarter and 3.3 percent for the full year. The decline was primarily driven by reductions in U.S. Retail Markets, which saw a 5.3 percent drop, and Global Risk Solutions, which fell by 2.3 percent. However, despite these reductions, the company's pre-tax operating income increased significantly, jumping 92.1 percent year-over-year to $5.924 billion.
One of the major challenges Liberty Mutual faced was the impact of catastrophic events, particularly the severe wildfires that devastated parts of California in January 2025. The company estimates pre-tax catastrophe losses from these wildfires to be $1.2 billion, which will be reflected in first-quarter 2025 financials. Despite these challenges, Liberty Mutual remains well-positioned to manage risk and support policyholders affected by such events.
In addition to its financial results, Liberty Mutual announced a significant brand transition set for 2026. The company will retire the Safeco Insurance brand, consolidating all personal lines under the Liberty Mutual name. Since acquiring Safeco in 2008, Liberty Mutual has used the brand to sell home, auto, and specialty insurance through independent agents. Safeco's 22,000 independent agencies have played a key role in growing the business, which now generates $13 billion in annual premiums.
Luke Bills, president of independent agent distribution, emphasized that the transition will uphold Safeco’s legacy of strength and commitment to independent agents. Tyler Asher, Liberty Mutual’s chief distribution and marketing officer for U.S. Retail Markets, noted that the move will streamline operations, allowing the company to focus its marketing efforts behind a single brand while maintaining differentiation between direct and independent agent channels. Customers will retain their relationships with their current agents, and existing policies will not be affected.
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The brand shift is part of Liberty Mutual’s broader strategy to simplify operations and strengthen its market position. The company recently agreed to sell its operations in Thailand and Vietnam to Chubb Limited, with the Thailand transaction expected to close in the second quarter of 2025 and the Vietnam sale slated for 2026. These moves reflect Liberty Mutual’s focus on optimizing its global portfolio and expanding in areas with the greatest potential for long-term profitability.
Looking ahead, Liberty Mutual plans to leverage its strong capital position to pursue profitable growth in select market segments. The company’s total equity increased by 22.3 percent year-over-year to $30.652 billion, and cash flow from operations surged by 82.2 percent to $6.469 billion in 2024. These figures highlight Liberty Mutual’s financial resilience and ability to invest in future expansion.
The company will discuss its fourth-quarter and full-year 2024 results further in a scheduled conference call. As Liberty Mutual moves into 2025, it remains committed to disciplined underwriting, strategic brand consolidation, and global portfolio optimization to drive continued success.
