Lower catastrophe losses buoy Liberty Mutual in fourth quarterReprints
Liberty Mutual Holding Co. Inc. had fourth-quarter net income of $496.0 million, compared with a loss of $234.0 million in the same period the previous year.
Fourth-quarter net written premiums were $8.78 billion, an increase of 5.3% over the same period in 2012. Revenue for the quarter totaled $9.98 billion, up 5.5% from a year ago.
Catastrophe losses in the fourth quarter of 2013 dropped steeply to just $102.0 million compared with $855.0 million in the fourth quarter of 2012.
The mutual insurer’s combined ratio for the quarter was 100.4% compared with 112.9% in the year-ago period.
“2013 operating results showed marked improvement as we continued to grow selectively and improve underwriting profitability,” David H. Long, chairman and CEO of Liberty Mutual, said in a statement. “Our personal lines business grew 11%, among the highest in the industry, while our commercial business focused on reducing exposures in certain lines and strengthening underwriting across the board.”
Net income for the 12 months ending Dec. 31, 2013, was $1.74 billion, again more than twice the $829.0 million in 2012.
Net written premiums for 2013 were $35.22 billion, up 6.7% from 2012. Revenue for the year totaled $38.51 billion, up 6% over 2012.
For the year, catastrophe losses again fell steeply, to $1.26 billion in 2013 from $2.07 billion in 2012.
Liberty Mutual’s 2013 combined ratio was 99.8% compared with 104.8% in 2012.