Liberty Mutual’s net income tumbles
Liberty Mutual’s net income tumbles | Insurance Business Australia
Insurance News
Liberty Mutual’s net income tumbles
Lower result posted despite strong showing in fourth quarter
Insurance News
By
Terry Gangcuangco
LMHC (consisting of Liberty Mutual Holding Company and its subsidiaries) has published the group’s financial results for 2023.
Here’s how the numbers stacked up for LMHC in the past year:
Metric
Q4 2023
Q4 2022
FY 2023
FY 2022
Revenues
US$12.6 billion
US$12.4 billion
US$49.4 billion
US$47.2 billion
Pre-tax operating income
US$1.1 billion
US$790 million
US$711 million
US$1 billion
Pre-tax income
US$756 million
US$714 million
US$204 million
US$264 million
Consolidated net income
US$663 million
US$616 million
US$228 million
US$419 million
Net income attributable to LMHC
US$654 million
US$612 million
US$213 million
US$414 million
Choosing to focus on the quarterly figures, Liberty Mutual president and chief executive Tim Sweeney said: “We had a strong finish to the year with net income attributable to LMHC of US$654 million for the fourth quarter. We continue to make progress toward our 95% combined ratio target by the end of 2025, with 4.7 points of improvement in our underlying combined ratio and 2.3 points of improvement in our total combined ratio from the prior year quarter.
“We made particularly strong progress in US retail markets, where our underlying combined ratio improved by 7.4 points and total combined ratio dropped 6.6 points, as accelerating earned rate and targeted underwriting actions positively impacted the loss ratio.
“Despite higher loss activity in the quarter, global risk solutions drove 3.7 points of improvement in total combined ratio from full year 2022, driven by lower catastrophe losses and rate actions.
“Expense efficiencies are also a key part of our profit improvement plan, and I am pleased to report that we achieved US$360 million in run-rate expense savings from actions taken in 2023. Looking ahead to 2024 and beyond, we will continue to focus on our profit improvement programme, working to build upon the solid progress we have made to date.”
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