Liberty Mutual’s profit falls 12.3%

Liberty Mutual faced a tough second quarter as higher catastrophe losses and decreasing income from the company’s limited partnership took their toll.

The insurer’s net profit fell to $393 million in the quarter, a decrease of 12.3 percent or $55 million, compared with $448 million in the second quarter of 2013.

Its total revenues grew 3.1 percent to $9.9 billion in the quarter compared with $9.6 billion for the prior year quarter. The insurer’s net written premiums also grew to $9.1 billion, a 5.2 percent increase or $456 million.

Its combined ratio improved by 1 percent point to 100.4 percent for the quarter, while the insurer saw a 4.5 percent increase in catastrophe losses to $676 million.

The insurer’s limited partnership and limited liability company income saw a 46.4 percent decrease in the quarter to $118 million, compared with $220 million in the second quarter of 2013.

“Net written premium growth was healthy at just above 5 percent quarter over quarter, and underwriting improvements lowered the combined ratio by a point despite sizable severe storm losses,” said David Long, chairman and chief executive officer of Liberty Mutual Insurance. “In short, we continue to improve underwriting results and grow where we can do so profitably.”