Liberty Mutual swings to $769 million profit
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Liberty Mutual Holding Co. Inc. Thursday reported second-quarter net income of $769 million, compared with a net loss of $320 million in the year-earlier period.
Liberty Mutual Chairman and CEO David Long said during an earnings webcast with analysts Thursday that there were no direct COVID-19 losses in the latest results. The insurer reported a 100% drop in coronavirus-related claims compared with last year’s second quarter and benefited from the rebounding economy.
Total revenue rose 15.9% to $11.8 billion, from $10.2 billion in the year-earlier period.
In a separate statement, Mr. Long said the recent quarter’s results “benefited from continued strong performance within our investment portfolio, which generated $1.4 billion of pre-tax net investment income.” He said underwriting results were also “favorable,” as the insurer’s combined ratio improved to 98.1% from 105.2% in the year-earlier period, and net written premium grew 10.9% to $10.8 billion.
Catastrophe losses dropped 24.8% compared with last year’s second quarter.
The insurer said the risks related to the pandemic could continue depending on “developments which are highly uncertain and cannot be predicted, including litigation developments, legislative or regulatory actions and intervention, the length and severity of the coronavirus … the level of acceptance of the vaccines, and the actions of government actors to contain the coronavirus or treat its impact, among others.”
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