Liberty Mutual Holding Co. Inc. and its subsidiaries reported net income of $393 million for the quarter ended June 30, 2014, down $55 million or 12.3 percent from the same period in 2013.
Net written premiums grew just above 5 percent quarter over quarter, and the combined ratio was lowered by a point to 100.4 percent despite sizable severe storm losses.
“In short, we continue to improve underwriting results and grow where we can do so profitably,” said David H. Long, chairman and CEO of Liberty Mutual Insurance.
Other second quarter results included:
- Revenues were $9.939 billion, an increase of $299 million or 3.1 percent over the same period in 2013.
- Net written premium was $9.182 billion, an increase of $456 million or 5.2 percent over the same period in 2013.
- Catastrophe losses for the three months totaled $676 million, an increase of $29 million or 4.5 percent over the same period in 2013.
- Including the impact of catastrophes and net incurred losses attributable to prior years, the company’s combined ratio for the three months ended June 30, 2014 improved 1.0 point to 100.4 percent.
Liberty Mutual is the latest insurer to report a drop in second quarter profit. Travelers reported that net income fell to $683 million from $925 million a year earlier and a combined ratio of 95.1 percent. Chubb reported a 14 percent decline profit and a combined ratio of 90.0 for the quarter.
American International Group Inc. reported a 12.5 percent rise in quarterly profit and combined ratio under 100.
In mid-July, Liberty Mutual said it would cede $3.3 billion in asbestos, environmental and workers compensation liabilities to Berkshire Hathaway subsidiary National Indemnity Company, in one of the larger reinsurance deals in recent memory. Liberty Mutual issued $750 million of bonds to help finance part of the Berkshire cover.
*This story originally ran in our sister publication, Insurance Journal, excluding Carrier Management additions about the Liberty Mutual/Berkshire Hathaway reinsurance deal.