Liberty Mutual Holding Company reported net income attributable to the company of $1.03 billion for the first quarter of 2025, down from $1.54 billion in the same period last year.
The decline reflects the absence of discontinued operations income reported in the prior-year quarter.
Meanwhile, total revenue for the quarter was largely unchanged at $12.49 billion. Pre-tax operating income rose 15% year-over-year to $1.45 billion, supported by improved underwriting performance and increased investment income.
“Our first-quarter results reflect progress in underwriting and investment performance,” said Tim Sweeney, Liberty Mutual chairman and CEO. “We saw a 6.5-point improvement in our underlying combined ratio, reaching 81.9% for the quarter. Despite higher catastrophe losses, including those tied to wildfires in California, our total combined ratio stood at 96.6%.”
Sweeney also said that the company’s investment income reached $1.3 billion, supported by higher reinvestment yields and favorable private equity valuations.
Net written premium (NWP) across the company declined 1.8% to $10.76 billion in the first quarter. Excluding foreign exchange effects, the decline was 1.3%.
The US Retail Markets segment reported $6.06 billion in NWP, down 7.4% from a year earlier. Global Risk Solutions recorded $4.71 billion in NWP, up 7.5%. The Corporate and Other segment posted a loss of $7 million in NWP, compared to a gain of $37 million in the first quarter of 2024.
Meanwhile, catastrophe losses totaled $1.82 billion, more than double the $824 million recorded in the same period last year. Limited partnership income rose to $367 million from $159 million in the first quarter of 2024.
The company also reported favorable development on prior-year reserves, excluding asbestos and environmental claims, contributing $196 million to the quarterly result.
Investment-related losses narrowed, with net realized losses of $70 million compared to $92 million a year ago. Acquisition and integration costs increased slightly to $24 million, and restructuring costs rose to $15 million from $6 million.
“Overall, we are very pleased with our performance this quarter as we continue to pursue profitable growth and progress toward our 95% combined ratio goal at the end of 2025,” Sweeney said.
