Liberty Mutual Holding Company Inc. (LMHC) and its subsidiaries reported a 51.7% decrease in net income over 2019, weighed down by a net loss of $300 million during the fourth quarter of the year.
The company’s net income was $1.04 billion in 2019, versus $2.160 billion in the previous year. Q4 income was $249 million in 2018.
Results deteriorated despite the lower impact of catastrophe losses last year, which totalled $1.477 billion compared with $1.903 billion in 2018.
Looking at Q4 alone, LMHC reported $280 million of catastrophe losses in 2019, versus $534 million for the same period in the previous year.
“Our response to rising loss trends in commercial lines dominated financial results in the quarter,” said David H. Long, Liberty Mutual Chairman and Chief Executive Officer.
“We achieved significant rate increases, expanded reinsurance protection, and continued strategic underwriting actions in a coordinated effort to improve profitability and protect our balance sheet.”
Long added: “The strength of our diversified business profile allows us to navigate these challenging market conditions.”
LMHC’s net written premium for the full year was $39.814 billion in 2019, representing an increase of $714 million or 1.8% over the same period in 2018.
For Q4, net written premium was $9.751 billion, an increase of $345 million or 3.7% over the same period in 2018.
The total combined ratio for the year was 101.7%, which was 2.5 points higher than in 2018. Excluding catastrophe and net incurred losses attributable to prior years, the combined ratio was 95.4%, or 1.0% higher than in 2018.
