Liberty Mutual reported an improved 2017 second quarter, with a big jump in net premiums written and net income driven by its $3 billion acquisition of property/casualty specialty insurer Ironshore Inc.
At the same time, there are caveats. Catastrophe losses also declined but, Liberty Mutual’s combined ratio deteriorated 1.3 points to 102.7.
Liberty Mutual’s net income came in at $126 million for the second quarter, versus $15 million in the 2016 second quarter.
Net written premium for Q2 surpassed $9.9 billion, nearly 10 percent higher than the same period in 2016. Liberty Mutual
Chairman and CEO David Long noted in prepared remarks that the Ironshore acquisition which closed in Q2, contributed to the result.
Catastrophe costs were booked at $692 million for the quarter, down from $675 million in the 2016 second quarter.
Other details from the Q2 and six month results:
- Integration costs from the Ironshore acquisition were $26 million in Q2. For the first six months of 2016, they hit the $36 million mark.
- Cashflow from operations for Q2 was $1.18 billion, $834 million higher than the same period in 2016.
- Net written premiums for the first six months of 2017 were more than $19 billion, $1.35 billion higher than the same period in 2016.
- Liberty Mutual’s combined ratio for the first six months of 2017, including catastrophes, reached 102.1, 3.2 points higher than the same period in 2016.
Source: Liberty Mutual