Liberty Mutual Holding Company and its subsidiaries has reported a Q2 net income of $399 million, a 59.3% drop from the $582 million reported in the prior year quarter.
The company is being hit by what has been described by Chairman and Chief Executive Officer, David H. Long, as “unusual volatility resulting from $82 million of Typhoon Jebi development and higher than expected non-catastrophe loss activity, including adverse trends in liability lines consistent with industrywide results.”
Liberty Mutual’s results report states that discontinued operations, net of tax, for Q2 were zero versus $471 million for the same period in 2018.
Including the impact of catastrophes, net incurred losses attributable to prior years and current accident year re-estimation, the total combined ratio for Q2 was 101.2%, an increase of 3.3% over the same period in 2018.
Pre-tax operating income before partnerships, limited liability companies and other equity method income for Q2 was $211 million, a decrease of $260 million or 55.2% from the same period in 2018.
Net written premium was $10.039 billion, a decrease of $32 million or 0.3% from the same period in 2018.
“Results for the first six months were more in line with expectations as consolidated net income from continuing operations was $1.1 billion, up $21 million from 2018, with revenues up 4.1%,” Long added.
“Key drivers include a combined ratio of 98.7%, investment income up 2%, and a one point reduction in the expense ratio.”
“While year-to-date results are in-line with 2018, we remain committed to further improving underwriting performance, specifically in commercial lines, and feel confident that market conditions will allow us to do so.”
