Liberty Mutual sees net income dive
Liberty Mutual sees net income dive | Insurance Business America
Insurance News
Liberty Mutual sees net income dive
Lower result posted despite strong Q4 performance
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
$12.6 billion
$12.4 billion
$49.4 billion
$47.2 billion
Pre-tax operating income
$1.1 billion
$790 million
$711 million
$1 billion
Pre-tax income
$756 million
$714 million
$204 million
$264 million
Consolidated net income
$663 million
$616 million
$228 million
$419 million
Net income attributable to LMHC
$654 million
$612 million
$213 million
$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 $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 $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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