Liberty Mutual Holding Company Inc. (LMHC) and its subsidiaries has posted a net income attributable to LMHC of $892 million for the third quarter of 2024, a notable shift from last year’s income of $219 million, while also posting consolidated pre-tax net catastrophe losses of $1.1 billion in the quarter, including $458 million from Hurricane Helene.
At the same time, the company posted a 1.1% decrease in net written premium (NWP) during the quarter, falling from $12.1 billion to $12.0 billion.
LMHC’s total revenues were up slightly by 1.3%, rising to $12,7 billion, compared to $12.5 billion from the prior year quarter.
Meanwhile, LMHC’s total combined ratio for Q3’24 was 96.7%, a 5.9 percentage point difference from last year’s 102.6 %, while it’s underlying combined ratio sat at 88.1% for the quarter, in comparison to 92.1% from last year.
Looking at their results for the first nine months of 2024, LMHC’s net income spiked to $3.144 billion, a major shift compared to last year’s net loss of $441 million.
NWP for 9M 2024 sat at $34.4 billion, a slight decrease from the prior year’s $35.1 billion.
LMHC’s total combined ratio for the first nine months of 2024 sat at 97.3 %, an 8.1 percentage point difference from last year’s 105.4 %.
Tim Sweeney, Liberty Mutual President & Chief Executive Officer, commented: “For the third quarter, we reported net income attributable to LMHC of $892 million, reflecting strong underwriting performance in both our US Retail Markets and Global Risk Solutions businesses as well as solid investment results.
“Our targeted underwriting strategies continue to drive strong financial results, with a 4.0-point improvement in the underlying combined ratio to 88.1%. The total combined ratio, including catastrophes and prior year development, was 96.7% for the quarter, a 5.9-point reduction over prior year. We continue to make particularly significant progress in US Retail Markets, where our total combined ratio dropped 13.8 points to 94.9%, as earned rate, underwriting actions and improved frequency trends positively impacted the underlying loss ratio, which improved 10.2 points from prior year.
“Catastrophe losses remained elevated, with consolidated pre-tax net catastrophe losses in the quarter of $1.1 billion including $458 million from Hurricane Helene. Investment results in the quarter were strong, driven by higher fixed income yields and favorable private equity valuations, which contributed to $1.2 billion of pre-tax net investment income. Overall, we remain focused on achieving our 95% target combined ratio in 2025 as the foundation for sustained, profitable growth.”
