First-quarter 2026 earnings from major US carriers are offering a snapshot of how different segments of the market are responding to shifting conditions in underwriting, catastrophe activity and capital management.
US carriers Liberty Mutual and Lincoln Financial have reported first‑quarter 2026 results that underscore how lower catastrophe losses, capital actions and business‑mix changes are feeding through to earnings, even as competition intensifies across key lines.
Liberty Mutual's first-quarter numbers showed a sharp improvement in underwriting and investment performance.
Liberty Mutual and its subsidiaries posted net income attributable to LMHC of about $2.05 billion for the three months ended March 31, 2026, up from $1.03 billion a year earlier.
Catastrophe losses added 5.2 points to the combined ratio, down from 16.7 points a year earlier. The underlying combined ratio, which strips out catastrophe and prior‑year development, was 84.1%, compared with 81.9%, reflecting higher underwriting expenses but continued strength in core loss ratios.
“We posted excellent first‑quarter results, with net income attributable to LMHC of $2.1 billion and a consolidated combined ratio of 88.2%,” said Tim Sweeney, Liberty Mutual chairman and chief executive officer. “The 8.4‑point combined ratio improvement was driven by significantly lower catastrophe losses, while our underlying combined ratio of 84.1% reflects the continued strength of our core underwriting franchise. With the strongest balance sheet in our history, we have the financial foundation and the discipline to pursue profitable growth in increasingly competitive markets.”
Net written premium (NWP) grew 3.4% to $11.126 billion. US Retail Markets generated NWP of $6.181 billion, up 2.0%, while Global Risk Solutions increased NWP 5.3% to $4.954 billion. Corporate and Other reported a small negative NWP, broadly in line with the prior year.
On the balance sheet, total equity rose 3.6% from year‑end 2025 to $41.319 billion as of March 31, 2026, with unassigned equity up 5.0% to $43.218 billion. Accumulated other comprehensive loss widened, partly offsetting that increase, but management highlighted what it described as the strongest balance sheet in the company’s history.
Subsequent to quarter‑end, Liberty Mutual Group Inc. issued $750 million of 5.250% senior notes due 2036, further lengthening debt maturities. Interest on the notes will be payable semi‑annually starting November 1, 2026.
Lincoln Financial reported a first‑quarter net loss available to common stockholders of $211 million, or $1.10 per diluted share, compared with net income in the prior‑year period. The carrier said the difference between net income and adjusted operating income was driven primarily by the non‑economic impact of changes in market risk benefits.
Adjusted operating income available to common stockholders was $326 million, or $1.66 per diluted share. Holding company available liquidity increased to $805 million, net of prefunding amounts, as Lincoln continued to rebuild its capital position following de‑risking actions in recent years.
On the segment front, life insurance posted operating income of $41 million, a $57 million improvement from the prior‑year quarter, helped by strong alternative investment income and the impact of a captive consolidation completed in the fourth quarter of 2025. Total life sales were $129 million, up 33% year over year, with growth across all product lines, most notably in executive benefits.
In workplace solutions, group protection delivered operating income of $112 million, up from $101 million a year earlier, driven by favorable life claims experience. Premiums increased 2% year over year; excluding a large case lapse, premium growth would have been 3.4%. Sales of $150 million were 4% lower than the prior‑year quarter, which the company said reflected a disciplined approach to balanced growth.
Retirement plan services reported operating income of $43 million, a 26% increase, supported by spread expansion and favorable equity markets, partly offset by trailing‑twelve‑month outflows. Net outflows improved to $0.2 billion from $2.2 billion in the first quarter of 2025. Total deposits reached $4.1 billion, up 1%, with first‑year sales of $1.1 billion, up 3% year over year.
“Our first quarter results reflect continued disciplined execution and consistent, meaningful progress against our strategic priorities,” said Ellen Cooper, chairman, president and CEO. “Group Protection delivered record first quarter earnings, while Life Insurance and Retirement Plan Services generated strong earnings growth. In Annuities, we achieved another quarter of diversification in new business with a more balanced mix and less market sensitivity."
