Liberty Mutual reports third-quarter net income

Liberty Mutual Holding Co. Inc. posted net income in the third quarter of 2018, swinging back from a loss last year on lower catastrophe losses.

The Boston-based mutual insurer reported net income of $282 million in the third quarter of 2018 compared with a net loss of $665 million in the same period last year, according to its third-quarter earnings statement released Thursday. Net income for the first nine months of 2018 was $1.9 billion compared with a $188 million loss during the same time period last year.

The insurer’s combined ratio improved 17.7 points to 99.5% in the third quarter and improved 8.5 points to 98.8% over the first nine months of the year, according to the report.

“Net income in the quarter increased to $282 million while our combined ratio decreased to 99.5%,” David Long, Liberty Mutual Insurance chairman and CEO, said in the statement. “The improvement in both figures was driven primarily by decreased catastrophe activity within the quarter.”

Catastrophe losses totaled $479 million in the third quarter compared with $1.8 billion in the same period last year and $1.3 billion in the first nine months compared with $3.2 billion over the first nine months of the prior year, according to the report.

Net written premium for the third quarter was $10.2 billion, a 3.4% increase over the same period in 2017, according to the earnings report. Net written premium for the first nine months of 2018 rose 6.3% to $29.7 billion.

Ironshore Inc. acquisition and integration costs for the first nine months of 2018 were $31 million, a 58.1% decrease from the same period in 2017, according to the report.