Liberty Mutual Q1 profit jumps as nat cat cost drop
Liberty Mutual Holding Company (LMHC) more than doubled profits year on year in the first quarter of 2018 on lower natural catastrophe costs.
Net income increased to $648 million in the first three months of 2018 from $297 million in the same period a year ago.
The total combined ratio for the three months ended March 31, 2018 improved 2.8 points year on year to 99.0 percent.
“Net income from continuing operations for the quarter was $590 million, an increase of almost $300 million over the prior year, driven by a milder catastrophe quarter, and continued strong investment results,” said Liberty Mutual CEO David Long. “Growth remains robust, as net written premium increased 7 percent excluding the impact of foreign exchange,” Long added.
Boston-based LMHC, the parent corporation of the Liberty Mutual Insurance group of entities, is a diversified global insurer and third largest property and casualty insurer in the US based on 2017 direct written premium, including the acquisition of Ironshore.
Liberty Mutual Insurance has completed the acquisition of 100 percent ownership interest in Bermuda-based specialty property/casualty insurer Ironshore from Chinese conglomerate Fosun International in May 2017. The purchase price equated to $2.94 billion but is subject to post-closing adjustments.
Overall, in the first quarter of 2018 LMHC increased net written premium by $746 million year on year to $9.43 billion.
On May 1 LMHC finalized the sale of Liberty Life Assurance Company of Boston, allowing the company opportunity to fully focus on property and casualty insurance going forward, Long noted.
In addition, on May 3, 2018, the company’s Spanish subsidiary, Liberty Seguros Compania de Seguros y Reaseguros, completed the sale of its entire 99.44 percent interest in its Turkish insurance affiliate, Liberty Sigorta, to Talanx International.
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