Liberty Mutual Holding Company reported an increase in net income for its 2019 first quarter, thanks to improved underwriting margins and fewer catastrophe losses.

The Boston-based insurer booked $671 million in net income from Q1 compared to $649 million over the same period a year ago.

Liberty Mutual Chairman and CEO David Long credited the insurer’s gains, in part, with improved underwriting margins as reflected by a 96.3 combined ratio, which is 2.7 points lower than in Q1 2018. He said that unreleased gains related to equity securities and a strong performance in specialty insurance also helped.

Long noted two transactions during Q1 that helped the insurer boost its portfolio: a deal to purchase AmTrust’s global surety and credit reinsurance operations, and the sale of Pembroke syndicate and Ironshore Europe, which he said “eliminates duplicate efforts and thereby streamlines our global specialty business.”

Here are other highlights:

• Net written premium for Q1 was a hair shy of $9.7 billion, $265 million higher than in Q1 2018.
• Net realize gains for Q1 hit $250 million, $95 million higher than in the 2018 first quarter.
• Costs relating to Liberty Mutual’s acquisition and integration of Ironshore were $6 million, down $8 million from the same period in 2018.

Source: Liberty Mutual