"We made measurable progress on underwriting profitability in the fourth quarter, delivering a consolidated combined ratio of 85.0% and net income attributable to LMHC of $1.7 billion," said Tim Sweeney, Liberty Mutual Chairman & Chief Executive Officer. "The 6.5-point improvement in our combined ratio for the quarter was supported by favorable prior-year development and lower current-year catastrophe activity, while the underlying combined ratio of 91.4% reflected the impact of investments we're making to support growth initiatives. Investment results, including $790 million of limited partnerships income in the quarter, continued to provide a meaningful earnings tailwind.
As we reflect on the full year's results, the consolidated combined ratio of 88.4%, notably ahead of our 95% target in 2025 that was established three years ago, represents the lowest in recent history and an acknowledgement of the effort put forth by our people to build an underwriting culture that our policyholders deserve. We know the path ahead will not be easy, but we feel better positioned now than ever before to meet those challenges head on. We will continue to pursue disciplined, targeted growth where we feel we have a clear advantage and maintain the capital strength to serve our customers for years to come."
The tables below outline highlights of LMHC's consolidated financial results for the three and twelve months ended December 31, 2025.
Net Written Premium ("NWP") by Business:
Consolidated NWP by business was as follows:
Three Months Ended December 31,
Twelve Months Ended December 31,
$ in Millions
2025
2024
Change
2025
2024
Change
USRM
$6,375
$6,700
(4.9 %)
$26,468
$28,279
(6.4 %)
GRS
4,196
3,844
9.2
17,186
16,416
4.7
Corporate and Other
(19)
7
NM
(88)
268
NM
Total NWP
$10,552
$10,551
0.0 %
$43,566
$44,963
(3.1 %)
Foreign exchange effect on growth
(0.8)
(0.2)
NWP growth excluding foreign exchange1
0.8 %
(2.9 %)
1
Determined by assuming constant foreign exchange rates between periods.
NM = Not Meaningful
Consolidated Results of Operations:
Three Months Ended December 31,
Twelve Months Ended December 31,
$ in Millions
2025
2024
Change
2025
2024
Change
Revenues
$12,758
$12,218
4.4 %
$50,465
$50,218
0.5 %
Underlying PTOI before limited partnerships income
1,118
2,949
(62.1)
8,695
9,406
(7.6)
Catastrophes
(30)
(234)
(87.2)
(2,773)
(3,890)
(28.7)
Net incurred losses attributable to prior years:
- Asbestos and environmental1
(465)
(175)
165.7
(465)
(175)
165.7
- All other2
1,198
(760)
