Liberty Mutual Holding Company and its subsidiaries (LMHC) have reported their results for the second quarter of 2023 and the first half of 2023, posting a net loss attributable to LMHC of $585 million and $660 million for Q223 & H123, compared to net loss’ attributable to LMHC of $343 million and income of $155 million for the same periods in 2022.
Net written premium (NWP) for Q2 was $11.83 billion, compared to last year’s $11.82 billion, while NWP for H123 was $23.0 billion, compared to $22.76 billion from H122.
LMHC saw a 6.7% rise in revenues in Q2 as it increased to $12.35 billion from last year’s $11.58 billion.
In addition, catastrophe losses in Q2 more than doubled to $2.27 billion, compared to $1.10 billion from the same period last year. Cat losses for H123 stand at $3.34 billion, compared to H122’s $1.76 billion.
LMHC’s combined ratio for the second quarter of 2023 stood at 109.4%, a 3.8 difference from last year’s 105.6%.
Combined ratio for H123 was 106.5%, compared to H122’s 101.9%.
“During and subsequent to the quarter end, we announced key organizational changes and executive leadership appointments aimed at enhancing focus on long-term strategic markets, while better leveraging scale advantages to drive target profitability and sustainable success,” said Tim Sweeney, Liberty Mutual President & Chief Executive Officer.
“We have announced agreements to divest our GRM West operations in Europe and Latin America, and our GRS Liberty Specialty Markets direct insurance business operations in Brazil, Chile, and Colombia. This allows us to elevate our US-focused personal and small commercial business into a standalone business unit, called US Retail Markets or (USRM) and consolidate our international operations under one umbrella in Global Risk Solutions.”
He continued: “For the second quarter, we reported a net loss attributable to LMHC of $585 million, primarily driven by elevated catastrophe losses from widespread wind and hail events in Texas, Oklahoma, and Colorado. We have and continue to take rate and underwriting action to address the inflationary pressures in personal lines felt across the industry, resulting in a 4.7-point improvement in the underlying loss ratio in our Global Retail Markets business in the quarter. Despite elevated catastrophes, our Global Risk Solutions business is continuing to drive progress towards our combined ratio targets with improvement in the underlying loss ratio of 0.4pts in the quarter.”
