{"id":640,"date":"2025-05-08T15:00:42","date_gmt":"2025-05-08T15:00:42","guid":{"rendered":"http:\/\/www.vsdia.com\/?p=640"},"modified":"2025-05-08T18:40:59","modified_gmt":"2025-05-08T18:40:59","slug":"liberty-mutuals-q125-net-income-surpasses-1bn-despite-significant-cat-losses","status":"publish","type":"post","link":"http:\/\/www.vsdia.com\/index.php\/2025\/05\/08\/liberty-mutuals-q125-net-income-surpasses-1bn-despite-significant-cat-losses\/","title":{"rendered":"Liberty Mutual\u2019s Q1\u201925 net income surpasses $1bn despite significant cat losses"},"content":{"rendered":"

Liberty Mutual Holding Company Inc. (LMHC), a global property and casualty insurer, reported net income attributable to LMHC of $1.025 billion for the first quarter of 2025, down from $1.535 billion in the same period in 2024, as catastrophe losses surged 121% year-on-year.<\/p>\n

\"\"Given the higher cat load, the company\u2019s underwriting profit declined year-over-year, as reflected in a slightly higher total combined ratio of 96.6% in Q1 2025 compared to 95.8% in Q1 2024.<\/p>\n

Catastrophe losses increased to $1.821 billion, more than doubling from $824 million a year earlier. This increase in catastrophe losses added 9.5 points to the combined ratio, contributing to the overall deterioration.<\/p>\n

However, the underlying combined ratio improved to 81.9% from 88.4%\u2014suggesting better core underwriting results for the carrier.<\/p>\n

Additionally, the company recorded $196 million in favourable development on prior year non-asbestos and environmental losses in Q1 2025, compared to just $6 million in Q1 2024.<\/p>\n

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Total net written premium (NWP) declined 1.8% year-over-year to $10.76 billion. The US Retail Markets segment saw a 7.4% drop in NWP to $6.06 billion, while Global Risk Solutions posted a 7.5% increase to $4.71 billion. The foreign exchange impact on premium growth was a negative 0.5%, leading to a constant-currency adjusted decline of 1.3%.<\/p>\n

Pre-tax operating income before limited partnerships income was $1.086 billion, nearly flat from $1.108 billion in Q1 2024. Limited partnerships income rose sharply to $367 million from $159 million, contributing to an overall increase in pre-tax operating income to $1.453 billion from $1.267 billion.<\/p>\n

After accounting for income tax expense of $315 million, Liberty Mutual reported consolidated net income from continuing operations of $1.029 billion, up from $878 million in Q1 2024. However, last year\u2019s total net income included $663 million from discontinued operations, which led to a higher total in the prior-year period.<\/p>\n

Total equity increased to $32.36 billion as of March 31, 2025, up from $30.65 billion at year-end 2024. However, cash flow from continuing operations declined significantly to $439 million from $901 million a year earlier.<\/p>\n

“For the first quarter, we reported net income attributable to LMHC of $1.0 billion, reflecting improvement in our underlying combined ratio and strong investment results,” added Tim Sweeney, Liberty Mutual Chairman & Chief Executive Officer.<\/p>\n

“Continued discipline in our underwriting resulted in a notable 6.5-point improvement in the underlying combined ratio, achieving an 81.9% for the first quarter. Despite elevated catastrophe losses, driven by the devastating California wildfires, our total combined ratio including these losses and prior year development was 96.6%.<\/p>\n

“Furthermore, our investment results in the quarter were excellent, benefiting from higher reinvestment rates and favourable private equity valuations, contributing $1.3 billion of investment income. Overall, we are very pleased with our performance this quarter as we continue to pursue profitable growth and progress toward our 95% combined ratio goal at the end of 2025.”<\/p>\n

The post Liberty Mutual’s Q1’25 net income surpasses $1bn despite significant cat losses<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Liberty Mutual Holding Company Inc. (LMHC), a global property and casualty insurer, reported net income attributable to LMHC of $1.025 billion for the first quarter of 2025, down from $1.535 billion in the same period in 2024, as catastrophe losses surged 121% year-on-year. Given the higher cat load, the company\u2019s underwriting profit declined year-over-year, as…<\/p>\n","protected":false},"author":1,"featured_media":642,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[9],"tags":[],"_links":{"self":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts\/640"}],"collection":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/comments?post=640"}],"version-history":[{"count":3,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts\/640\/revisions"}],"predecessor-version":[{"id":644,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts\/640\/revisions\/644"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/media\/642"}],"wp:attachment":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/media?parent=640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/categories?post=640"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/tags?post=640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}