Liberty Mutual Holding Company Inc. has reported a net income of $213 million for the full year 2023, down substantially from the $414 million recorded in 2022, despite a strong end to the year.
Liberty’s total net written premium for the full year 2023 grew 2.5% versus 2022, reaching $46.48 billion.
The firm’s total revenues were also up slightly in 2023 at $49.41 billion, compared to $47.18 billion in 2022.
However, pre-tax operating income was down 30.8% to $711 million, while pre-tax income was down also 22.7% to $204 million.
Meanwhile, consolidated net income fell 45.6% to $228 million, leaving total net income for 2023 attributable to Liberty at $213 million, compared to $414 million in 2022.
The firm’s 2023 total combined ratio was 102.7%, only marginally higher than 2022’s 102%, while its underlying combined ratio for the year was 93.4%, down from 95.1% in 2022.
Commenting on the Q4 results, Tim Sweeney, Liberty Mutual President & Chief Executive Officer, said, “We had a strong finish to the year with net income attributable to LMHC of $654 million for the fourth quarter.
“We continue to make progress toward our 95% combined ratio target by the end of 2025, with 4.7 points of improvement in our underlying combined ratio and 2.3 points of improvement in our total combined ratio from the prior year quarter.”
Sweeney continued, “We made particularly strong progress in US Retail Markets, where our underlying combined ratio improved by 7.4 points and total combined ratio dropped 6.6 points, as accelerating earned rate and targeted underwriting actions positively impacted the loss ratio.
“Despite higher loss activity in the quarter, Global Risk Solutions drove 3.7 points of improvement in total combined ratio from full year 2022, driven by lower catastrophe losses and rate actions.
“Expense efficiencies are also a key part of our profit improvement plan, and I am pleased to report that we achieved $360 million in run-rate expense savings from actions taken in 2023.
“Looking ahead to 2024 and beyond, we will continue to focus on our profit improvement program, working to build upon the solid progress we have made to date.”
