Liberty Mutual Holding Company has reported a 10.1% increase in its total revenues between FY 2020 and FY 2021.
The firm, in posting its results, said that its revenues in 2021 were $48,200m, up from $43,796m the year before. However, revenues in Q4 2021 were only 3.6% higher than they had been in Q4 2020.
David H. Long, chairman and CEO of Liberty Mutual, said in a statement that the company had a strong finish to the year, with inflows of $722m in the last quarter. Full-year inflows, said Long, were $3.1bn.
He added: “Results continued to benefit from the exceptional returns we’ve seen over the past year in our partnerships, LLC, and other equity method investment portfolio, which produced $916m of pre-tax income in the quarter.”
He went on: “We also continued to make progress in the quarter against our objectives of profitable growth in Global Retail Markets, profit improvement in Global Risk Solutions, and expense management, with net written premium growth in GRM of 8.5%, core combined ratio improvement in GRS of 2.6 points to 91.3%, and a 0.6 point decrease in the group’s expense ratio to 29.6%.”
Meanwhile, the company said that it had seen its total net written premiums grow 7.5% between FY 2020 and FY 2021, from $40,624m to $43,679m.
Liberty Mutual also reported that growth in net written premiums was particularly strong in Q4 2021 compared to the same period the year before, registering a 9.2% difference.
Catastrophe losses for the year increased to $3,804m in 2021 from $2,523m in 2020, although the firm has reported no impact from COVID-19 in 2021 compared with losses of $680m in 2020.
Despite the reduction in pandemic-related claims, Liberty Mutual’s combined ratio for the year ended up in unprofitable territory at 100.8%, although this does represent a 1 percentage point improvement on the prior year.
All in all, the company has produced consolidated net income of $3,070m for 2021, compared with $760m in 2020.
