Liberty Mutual Insurance marks turnaround in Q1 financials
Liberty Mutual Insurance marks turnaround in Q1 financials | Insurance Business Asia
Insurance News
Liberty Mutual Insurance marks turnaround in Q1 financials
President and CEO lifts the lid on quarterly earnings
Insurance News
By
Terry Gangcuangco
Liberty Mutual Insurance (formally Liberty Mutual Holding Company and its subsidiaries, or LMHC collectively) has turned things around in the first quarter of 2024.
Here’s how the insurance group performed in the three months ended March 31:
Metric
Q1 2024
Q1 2023
Revenues
US$12.475 billion
US$11.928 billion
Pre-tax operating income (loss)
US$1.267 billion
US$(169 million)
Pre-tax income (loss)
US$1.148 billion
US$(232 million)
Consolidated net income (loss) from continuing operations
US$878 million
US$(182 million)
Consolidated net income (loss)
US$1.541 billion
US$(67 million)
Net income (loss) attributable to LMHC
US$1.535 billion
US$(74 million)
Lifting the lid on Liberty Mutual’s financial results, president and chief executive Tim Sweeney (pictured) noted: “For the first quarter, we reported net income attributable to LMHC of US$1.5 billion driven by strong core underwriting results and a US$663 million after-tax benefit from the gain on the sale of our GRM West Operations.
“Underwriting results continue to improve, with a 2.8 point improvement in the underlying loss ratio to 62.1% for the first quarter driven by rate execution and other underwriting actions. Catastrophe losses were in line with expectations for the quarter and improved 2.3 points from the prior year. In total, the loss ratio improved 5.9 points to 69.5%.
“Our US Retail Markets segment saw 5.2 points of improvement in the underlying loss ratio compared to the prior year driven by targeted rate actions continuing to earn in and favourable frequency trends. Despite higher current year large loss activity, Global Risk Solutions total combined ratio improved 3.9 points from the prior year to 94.2%.
“Our ongoing expense management program drove a 2.5 point reduction in the consolidated expense ratio to 26.3%. Overall, it was a strong quarter, and we are pleased with the solid progress we continue to make on profit improvement as we march towards our 95% combined ratio target in 2025.”
Liberty Mutual’s total combined ratio in Q1 was 95.8%, an improvement from last year’s 104.2%.
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