Liberty Mutual Insurance Reports Third Quarter 2024 Results
BOSTON, Nov. 7, 2024 /PRNewswire/ -- Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $892 million and $3.144 billion for the three and nine months ended September 30, 2024, versus income of $219 million and a net loss attributable to LMHC of $441 million for the same periods in 2023.
"For the third quarter, we reported net income attributable to LMHC of $892 million, reflecting strong underwriting performance in both our US Retail Markets and Global Risk Solutions businesses as well as solid investment results," said Tim Sweeney, Liberty Mutual President & Chief Executive Officer. "Our targeted underwriting strategies continue to drive strong financial results, with a 4.0-point improvement in the underlying combined ratio to 88.1%. The total combined ratio, including catastrophes and prior year development, was 96.7% for the quarter, a 5.9-point reduction over prior year. We continue to make particularly significant progress in US Retail Markets, where our total combined ratio dropped 13.8 points to 94.9%, as earned rate, underwriting actions and improved frequency trends positively impacted the underlying loss ratio, which improved 10.2 points from prior year. Catastrophe losses remained elevated, with consolidated pre-tax net catastrophe losses in the quarter of $1.1 billion including $458 million from Hurricane Helene. Investment results in the quarter were strong, driven by higher fixed income yields and favorable private equity valuations, which contributed to $1.2 billion of pre-tax net investment income. Overall, we remain focused on achieving our 95% target combined ratio in 2025 as the foundation for sustained, profitable growth."
The tables below outline highlights of LMHC's consolidated financial results for the three and nine months ended September 30, 2024.
Net Written Premium ("NWP") by Business:
Consolidated NWP by business was as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
$ in Millions
2024
2023
Change
2024
2023
Change
US Retail Markets
$7,619
$8,043
(5.3 %)
$21,579
$22,790
(5.3 %)
Global Risk Solutions
4,134
4,208
(1.8)
12,572
12,506
0.5
Corporate and Other
274
(91)
NM
261
(144)
NM
Total NWP
12,027
$12,160
(1.1 %)
$34,412
$35,152
(2.1 %)
Foreign exchange effect on growth
(0.1)
(0.1)
NWP growth excluding foreign exchange1
(1.0 %)
(2.0 %)
1
Determined by assuming constant foreign exchange rates between periods.
NM = Not Meaningful
Consolidated Results of Operations:
Three Months Ended
September 30,
Nine Months Ended
September 30,
$ in Millions
2024
2023
Change
2024
2023
Change
Revenues
$12,727
$12,564
1.3 %
$38,000
$36,845
3.1 %
Underlying PTOI before limited partnershipsincome
2,104
1,456
44.5
6,477
3,415
89.7
Catastrophes
(1,087)
(1,110)
(2.1)
(3,656)
(4,451)
(17.9)
Net incurred losses attributable to prior years:
- Asbestos and environmental1
-
