Liberty Mutual sees net income plunge

Liberty Mutual sees net income plunge | Insurance Business Canada

Insurance News

Liberty Mutual sees net income plunge

Lower result posted despite strong Q4

Insurance News

By
Terry Gangcuangco

LMHC (consisting of Liberty Mutual Holding Company and its subsidiaries) has published the group’s financial results for 2023.

Here’s how the numbers stacked up for LMHC in the past year:

Metric

Q4 2023

Q4 2022

FY 2023

FY 2022

Revenues

US$12.6 billion

US$12.4 billion

US$49.4 billion

US$47.2 billion

Pre-tax operating income

US$1.1 billion

US$790 million

US$711 million

US$1 billion

Pre-tax income

US$756 million

US$714 million

US$204 million

US$264 million

Consolidated net income

US$663 million

US$616 million

US$228 million

US$419 million

Net income attributable to LMHC

US$654 million

US$612 million

US$213 million

US$414 million

Choosing to focus on the quarterly figures, Liberty Mutual president and chief executive Tim Sweeney said: “We had a strong finish to the year with net income attributable to LMHC of US$654 million for the fourth quarter. We continue to make progress toward our 95% combined ratio target by the end of 2025, with 4.7 points of improvement in our underlying combined ratio and 2.3 points of improvement in our total combined ratio from the prior year quarter.

“We made particularly strong progress in US retail markets, where our underlying combined ratio improved by 7.4 points and total combined ratio dropped 6.6 points, as accelerating earned rate and targeted underwriting actions positively impacted the loss ratio.

“Despite higher loss activity in the quarter, global risk solutions drove 3.7 points of improvement in total combined ratio from full year 2022, driven by lower catastrophe losses and rate actions.

“Expense efficiencies are also a key part of our profit improvement plan, and I am pleased to report that we achieved US$360 million in run-rate expense savings from actions taken in 2023. Looking ahead to 2024 and beyond, we will continue to focus on our profit improvement program, working to build upon the solid progress we have made to date.”

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