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Liberty Mutual sees dip in net income in Q4 results

23rd February 2023 - Author: Jack Willard

Liberty Mutual Holding Company Inc., (LMHC) and its subsidiaries has reported net income attributable to LMHC of $612 million for the fourth quarter of 2022, a 15.2% decrease from $722 million from the prior year quarter.

liberty-mutual-insurance-logoNet written premium (NWP) for the quarter was $11.524 billion, representing a 4.5% rise from $11.028 billion from the same period last year.

Combined ratio for Q4 was 96.9%, a substantial improvement from 99.2% from Q421.

Elsewhere for FY22, LMHC reported a net income of $414 million, representing an 86.5% decrease from 2021’s $3,068 billion.

NWP for the full-year saw a 10.4% increase from $43.679 billion to $48.227 billion.

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Additionally, combined ratio for the full-year stood at 101.6%, compared to 100.8% from 2021.

Commenting on the results, Tim Sweeney, Liberty Mutual President & Chief Executive Officer, said: “Operating results in the fourth quarter reflected solid progress on underwriting improvement despite continued challenging market conditions in U.S. personal lines and Winter Storm Elliot in late December. Net income attributable to LMHC in the fourth quarter was $612 million, down moderately from $722 million in the prior year reflecting the non-recurrence of extraordinary returns in our limited partnerships portfolio experienced last year.

“Pre-tax operating income before limited partnerships was $759 million, up from $352 million in the prior year quarter driven by higher underwriting income and an increase in book yield from the recent rise in interest rates. Net written premium growth in the quarter was 4.5% driven by the State Auto and AmGeneral acquisitions and firm pricing across most lines of business.

“Rate increases continue to accelerate in personal auto and homeowners, and commercial lines pricing has remained strong which combined with other underwriting actions will drive margin improvement despite elevated loss trends. We’re on the right path heading into 2023 and remain focused on achieving our profitability goals.”

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