13 August 2015 Insurance

Catastrophe losses drive down profits at Liberty Mutual

Liberty Mutual reported a fall in profits for the second quarter of 2015 as catastrophe losses and continued market pressures in the energy sector took their toll.

Its profits slipped to $254 million in the second quarter of 2015, a decrease of 35 percent compared with $391 in the second quarter of 2014.

The insurer’s revenues for the three months ended June 30, 2015 jumped 4.3 percent to $10.4 billion, compared with $9.9 billion in the same period of the prior year.

However, its combined ratio deteriorated 2.1 percentage points to 102.4 percent in the quarter.

David Long, chairman and chief executive officer (CEO) of Liberty Mutual Insurance said: “Currency volatility, increased catastrophe losses, and continued market pressures in the energy sector contributed to the 36 percent decline in consolidated net income to $249 million in the second quarter.

“Still, these events are tempered by the continued strength of our underlying operations and growth in each of our four strategic business units, with net written premium up 6 percent in the second quarter.”

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