Liberty Mutual reveals first quarter financial results

Two deals have helped the company’s insurance portfolio

Liberty Mutual reveals first quarter financial results

Insurance News

By Bethan Moorcraft

Liberty Mutual is the latest insurer on the block to announce its first quarter (Q1) 2019 results - and its smiles all-round for the Boston-based firm.

The Liberty Mutual Holding Company Inc. (LMHC) and its subsidiaries reported net income of US$671 million (about SG$916 million) for Q1, an increase of US$22 million or 3.4% over the same period in 2018. Net written premium for the three months also enjoyed a US$265 million or 2.8% jump, reaching a total of US$9.699 billion.

LMHC’s consolidated net income for January to March 2019 was US$671 million, an increase of US$22 million or 3.4% over the same period in 2018. The group also reported a total Q1 combined ratio of 96.3% (including the impact of catastrophes and net incurred losses from prior years), which was a decrease of 2.7% from the same period in 2018.

“Consolidated net income from continuing operations was US$721 million, up 22% over the prior year,” said David H. Long, Liberty Mutual chairman and chief executive officer. “The earnings increase was driven by improved underwriting margins as reflected in a 2.7 point decrease in the combined ratio to 96.3%, and the benefit of unrealised gains related to equity securities. Written premium increased 2.8% primarily produced by strong performance in specialty insurance.”

Liberty Mutual recently announced two big transactions, aimed at “optimising [the firm’s] insurance portfolio,” explained Long. In April, the firm acquired the global surety and credit reinsurance operations of AmTrust Financial, which Long said “solidifies [Liberty Mutual’s] market leading position in surety”.

The firm also announced the sale of two of its European business units following a strategic review. In March, LMHC sold its London-based Pembroke Managing Agency Limited and its Dublin-based Ironshore Europe DAC businesses - both of which were acquired through the purchase of Ironshore in May 2017 - to Hamilton Insurance Group. Long said this transaction “eliminated duplicate efforts and thereby streamlines [Liberty Mutual’s] global specialty business.”

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