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Liberty Mutual profits fall 3.2% in Q3

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Liberty Mutual

Liberty Mutual Holding Co. Inc. and its subsidiaries on Thursday reported $274 million in third quarter profits in 2019, a 3.2% drop from the year-ago period, with overall year-to-date profits standing at $1.4 billion, in line with last year’s figures for the year up to Sept. 30.

Liberty Mutual Chairman and CEO David Long acknowledged in a statement that both the third quarter and year-to-date figures remained stable: “The results reflect favorable investment performance offset by increased current accident year loss ratios from the elevated liability loss trends facing the industry.”

“Regarding liability trends, we believe that the current level of rate increases are in excess of loss trends and, subsequent to the quarter, we entered into an adverse development cover to protect against potential future development across several casualty lines,” he said in the statement.

Other third-quarter highlights included: 

  • Net written premium was $10.325 billion, an increase of $136 million or 1.3% over the same period in 2018.
  • The consolidated combined ratio before catastrophes, net incurred losses attributable to prior years and current accident year re-estimation for the three months ended Sept. 30 was 95.6%, an increase of 0.9 points over the same period in 2018.
  • Including the impact of catastrophes, net incurred losses attributable to prior years and current accident year re-estimation, the total combined ratio in the third quarter was 102.5%, an increase of 3.0 points over the same period in 2018.
  • Pre-tax operating income before partnerships, limited liability companies and other equity method income was $125 million, a decrease of $187 million or 59.9% from the same period in 2018.
  • Partnerships LLC and other equity method income was $162 million, a decrease of $24 million or 12.9% from the same period in 2018.
  • Net realized gains for the three months ended Sept. 30 were $81 million compared with $104 million lost for the same period in 2018.
  • Ironshore Inc. acquisition and integration costs for the three months that ended Sept. 30 were $4 million, a decrease of $3 million or 42.9% from the same period in 2018.
  • Restructuring costs during that time frame were $3 million, a decrease of $23 million or 88.5% from the same period in 2018.

 

 

 

 

 

 

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