Liberty Mutual posts big fall in profits as it discontinues Venezuelan operations
Liberty Mutual has reported a catastrophic fall in its net income for 2015.
The insurance group posted a net income for the 12 months ended December 31, 2015 of $514 million, a decrease of $1.3 billion or 71.7 percent from the same period in 2014.
Its consolidated net income from continuing operations for the 12 months ended December 31, 2015 was $1.443 billion, a decrease of $382 million or 20.9 percent from the same period in 2014.
Discontinued operations, net of tax for 2015, represented losses of $909 million for the company versus losses of $35 million in the same period in 2014. Effective September 30, 2015, the company determined it was appropriate to deconsolidate the Venezuelan operations, and has classified the Venezuelan operations as discontinued operations.
The consolidated combined ratio before catastrophes and net incurred losses attributable to prior years for last year was 93 percent an increase of 0.3 points over the same period in 2014. Including the impact of catastrophes and net incurred losses attributable to prior years, the company’s combined ratio for the 12 months ended December 31, 2015 remained unchanged at 97.8 percent.
Net realised losses for 2015 did decrease however to $24 million, a fall of $76 million or 76 percent from the same period in 2014.
