Liberty Mutual Insurance Reports First Quarter Results

BOSTON, May 9, 2024 /PRNewswire/ -- Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $1.535 billion for the three months ended March 31, 2024, versus a net loss attributable to LMHC of $74 million for the same period in 2023.

"For the first quarter, we reported net income attributable to LMHC of $1.5 billion driven by strong core underwriting results and a $663 million after-tax benefit from the gain on the sale of our GRM West Operations," said Tim Sweeney, Liberty Mutual President & Chief Executive Officer. "Underwriting results continue to improve, with a 2.8 point improvement in the underlying loss ratio to 62.1% for the first quarter driven by rate execution and other underwriting actions. Catastrophe losses were in line with expectations for the quarter and improved 2.3 points from the prior year. In total, the loss ratio improved 5.9 points to 69.5%. Our US Retail Markets segment saw 5.2 points of improvement in the underlying loss ratio compared to the prior year driven by targeted rate actions continuing to earn in and favorable frequency trends. Despite higher current year large loss activity, Global Risk Solutions total combined ratio improved 3.9 points from the prior year to 94.2%. Our ongoing expense management program drove a 2.5 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 on profit improvement as we march towards our 95% combined ratio target in 2025."

The tables below outline highlights of LMHC's consolidated financial results for the three months ended March 31, 2024.

Net Written Premium ("NWP") by Business:

Consolidated NWP by business was as follows:

Consolidated Results of Operations:

Combined Ratio:

Equity:

Subsequent Events

In April 2024, GRS announced a single unified strategy in Asia Pacific, critical to seize the significant opportunity in the region.  This includes the introduction of Liberty International Insurance ("LII"), a single demand pillar incorporating Liberty Specialty Markets ("LSM") and Asia Retail Markets ("ARM") businesses to drive our strategy.  This change will be effective for second quarter reporting.

Management has assessed material subsequent events through May 8, 2024, the date the financial statements were available to be issued.

Financial Information

The Company's financial results, management's discussion and analysis of operating results and financial condition, accompanying financial statements and other supplemental financial information for the three months ended March 31, 2024 are available on the Company's Investor Relations website at www.libertymutualgroup.com/investors.

About Liberty Mutual Insurance

At Liberty Mutual, we believe progress happens when people feel secure. By providing protection for the unexpected and delivering it with care, we help people embrace today and confidently pursue tomorrow.

In business since 1912, and headquartered in Boston, today we are the eighth largest global property and casualty insurer based on 2023 gross written premium. We also rank 86^th on the Fortune 100 list of largest corporations in the US based on 2022 revenue. As of December 31, 2023, we had $49.4 billion in annual consolidated revenue.

We employ over 45,000 people in 29 countries and economies around the world. We offer a wide range of insurance products and services, including personal automobile, homeowners, specialty lines, reinsurance, commercial multiple-peril, workers compensation, commercial automobile, general liability, surety, and commercial property.

For more information, visit www.libertymutualinsurance.com.

Cautionary Statement Regarding Forward Looking Statements

This report contains forward looking statements that are intended to enhance the reader's ability to assess the future financial and business performance of the Company. Forward looking statements include, but are not limited to, statements that represent the Company's beliefs concerning future operations, strategies, financial results, investment market fluctuations, or other developments, and contain words and phrases such as "may," "expects," "should," "believes," "anticipates," "estimates," "intends" or similar expressions. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the Company's control or are subject to change, actual results could be materially different.

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SOURCE Liberty Mutual Insurance