Liberty Mutual posts 4Q and 2022 results

BOSTON, Feb. 22, 2023 /PRNewswire/ -- Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $612 million and of $414 million for the three and twelve months ended December 31, 2022, versus net income attributable to LMHC of $722 million and $3.068 billion for the same periods in 2021.

"Operating results in the fourth quarter reflected solid progress on underwriting improvement despite continued challenging market conditions in U.S. personal lines and Winter Storm Elliot in late December," said Tim Sweeney, Liberty Mutual President & Chief Executive Officer. "Net income attributable to LMHC in the fourth quarter was $612 million, down moderately from $722 million in the prior year reflecting the non-recurrence of extraordinary returns in our limited partnerships portfolio experienced last year. Pre-tax operating income before limited partnerships was $759 million, up from $352 million in the prior year quarter driven by higher underwriting income and an increase in book yield from the recent rise in interest rates. Net written premium growth in the quarter was 4.5% driven by the State Auto and AmGeneral acquisitions and firm pricing across most lines of business. Rate increases continue to accelerate in personal auto and homeowners, and commercial lines pricing has remained strong which combined with other underwriting actions will drive margin improvement despite elevated loss trends. We're on the right path heading into 2023 and remain focused on achieving our profitability goals."

The tables below outline highlights of LMHC's consolidated financial results for the three months and twelve months ended December 31, 2022.

Net Written Premium ("NWP") by Business:

Consolidated NWP by business was as follows:

Consolidated Results of Operations:

Combined Ratio:

Equity:

Subsequent Events

Management has assessed material subsequent events through February 22, 2023.

Financial Information

The Company's financial results, management's discussion and analysis of operating results and financial condition are available on the Company's Investor Relations website at www.libertymutualgroup.com/investors. The accompanying financial statements for the three and twelve months ended December 31, 2022 will be available shortly on the website.

Conference Call Information

On February 23, 2023, at 10:00 a.m. Eastern Time, Tim Sweeney, Liberty Mutual Insurance President and CEO, will host a conference call to discuss the Company's fourth quarter and full year financial results. To participate in the event via telephone and to ask a question, please dial 877-270-2148 and request to join into the Liberty Mutual Insurance call. To listen to the call online via PC and view a presentation on financial performance, please log into https://event.choruscall.com/mediaframe/webcast.html?webcastid=9j460Aj6. Following the call, a recording of the event will be available on the Investor Relations section of Liberty Mutual's website, 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 sixth largest global property and casualty insurer based on 2021 gross written premium. We also rank 78^th on the Fortune 100 list of largest corporations in the U.S. based on 2021 revenue. As of December 31, 2022, we had $50.0 billion in annual consolidated revenue.

We employ over 50,000 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.

Risks and Uncertainties

The extent to which the coronavirus impacts our future results will depend on developments which are highly uncertain and cannot be predicted, including litigation developments, legislative or regulatory actions and intervention, the length and severity of the coronavirus (including of second waves), the level of acceptance of the vaccines, and the actions of government actors to contain the coronavirus or treat its impact, among others. Possible effects on our business and operations include:

• disruptions to business operations resulting from working from home or from closures of our corporate or sales offices and the offices of our agents and brokers and quarantines of employees, customers, agents, brokers and suppliers in areas affected by the outbreak;
• disruptions to business operations resulting from travel restrictions and reduced consumer spending on new homes or new automobiles which could reduce demand for insurance;
• disruptions to business operations resulting from our customers having lower payrolls and revenues which could have an impact on insurance revenue;
• increased claims related to trade credit, general liability, workers compensation, and event cancellation coverage, among others;
• executive or legislative mandates or court decisions expanding property insurance policy coverage to cover business interruptions resulting from COVID-19 notwithstanding any exclusions set forth in such policies or conditions precedent generally required for liability under such policies; and
• disruption of the financial markets resulting in reductions in the value of our investment portfolio.

A significant rise in the number of COVID-19 infections, infections in a wide range of countries and regions, or a prolongation of the outbreak, could create an adverse economic effect on the Company.

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