Liberty Mutual Insurance bounces back in Q1 results | Insurance business America
The CEO lifts the lid on the quarterly results
Insurance News
By Terry Gangcuangco
Liberty Mutual Insurance (formerly Liberty Mutual Holding Company and its subsidiaries, collectively LMHC) turned things around in the first quarter of 2024.
This is how the insurance group developed in the three months to March 31st:
|
Metric |
Q1 2024 |
1st quarter 2023 |
|---|---|---|
|
revenues |
$12.475 billion |
$11.928 billion |
|
Operating profit (loss) before taxes |
$1.267 billion |
$(169 million) |
|
Profit (loss) before taxes |
$1.148 billion |
$(232 million) |
|
Consolidated net income (loss) from continuing operations |
$878 million |
$(182 million) |
|
Consolidated net profit (loss) |
$1.541 billion |
$(67 million) |
|
The net profit (loss) attributable to LMHC. |
$1.535 billion |
$(74 million) |
Tim Sweeney (pictured), President and CEO of Liberty Mutual, revealed the financial results: “For the first quarter, we reported net income attributable to LMHC of $1.5 billion, driven by strong core underwriting results and profit after tax of $1.5 billion of $663 million was attributable to the gain on the sale of our GRM West operations.
“Underwriting results continue to improve, with the underlying loss ratio improving 2.8 points to 62.1% in the first quarter, driven by rate execution and other underwriting actions. Catastrophe losses were in line with expectations for the quarter and improved by 2.3 points compared to the previous year. Overall, the claims ratio improved by 5.9 points to 69.5%.
“Our U.S. retail market segment experienced a 5.2-point year-over-year improvement in underlying loss ratio, driven by targeted tariff actions that continue to deliver success and favorable frequency trends. Despite higher major loss activity in the current year, Global Risk Solutions’ overall combined ratio improved by 3.9 points to 94.2% compared to the previous year.
“Our ongoing cost management program resulted in a 2.5 percentage point reduction in the consolidated expense ratio to 26.3%. Overall, it was a strong quarter and we are pleased with the solid progress we continue to make in improving earnings as we move toward our goal of a combined combined ratio of 95% in 2025.”
Liberty Mutual’s total expense ratio was 95.8% in the first quarter, an improvement from 104.2% a year ago.
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2024-05-10 06:20:00
www.insurancebusinessmag.com
