Global insurer Liberty Mutual shares latest financial results
For the three months to December 31, 2022 (Q4 FY22), LMHC reported a net income of $612 million, down from $722 million for the same period in 2021 (Q4 FY21).
For the 12 months to December 31, 2022 (FY22), the company reported a net income of $414 million, down from $3.068 billion for the same period in 2021 (FY21).
Liberty Mutual’s Q4 2022 performance
For the fourth quarter of 2022, LMHC’s operating results reflected solid progress on improving underwriting despite challenging market conditions in the US personal lines and Winter Storm Elliot in December.
“Net income attributable to LMHC in the fourth quarter was $612 million, down moderately from $722 million in the prior year, reflecting the non-recurrence of extraordinary returns in our limited partnerships portfolio experienced last year,” said Liberty Mutual president & CEO Tim Sweeney.
“Pre-tax operating income before limited partnerships was $759 million, up from $352 million in the prior year quarter, driven by higher underwriting income and an increase in book yield from the recent rise in interest rates.”
LMHC further revealed 4.5% net premium growth for the quarter, driven by the State Auto and AmGeneral acquisitions and firm pricing across most business lines.
“Rate increases continue to accelerate in personal auto and homeowners, and commercial lines pricing has remained strong, which – combined with other underwriting actions – will drive margin improvement despite elevated loss trends. We’re on the right path heading into 2023 and remain focused on achieving our profitability goals,” Sweeney said.
Liberty Mutual’s recent activities
LMHC’s most recent developments include launching a Global Risk Solutions (GRS) Global Cyber Office and appointing industry experts to leadership roles.
The new office enhances Liberty Mutual’s cyber capabilities globally, bringing a multidisciplinary approach to cyber risk. Meanwhile, the new hires are expected to boost the Global Cyber Office’s leadership team.
