Liberty Mutual Insurance Reports Fourth Quarter and Full Year 2023 Results

BOSTON, March 6, 2024 /PRNewswire/ -- Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $654 million and $213 million for the three and twelve months ended December 31, 2023, versus net income attributable to LMHC of $612 million and $414 million for the same periods in 2022.

"We had a strong finish to the year with net income attributable to LMHC of $654 million for the fourth quarter," said Tim Sweeney, Liberty Mutual President & Chief Executive Officer. "We continue to make progress toward our 95% combined ratio target by the end of 2025, with 4.7 points of improvement in our underlying combined ratio and 2.3 points of improvement in our total combined ratio from the prior year quarter. We made particularly strong progress in US Retail Markets, where our underlying combined ratio improved by 7.4 points and total combined ratio dropped 6.6 points, as accelerating earned rate and targeted underwriting actions positively impacted the loss ratio. Despite higher loss activity in the quarter, Global Risk Solutions drove 3.7 points of improvement in total combined ratio from full year 2022, driven by lower catastrophe losses and rate actions. Expense efficiencies are also a key part of our profit improvement plan, and I am pleased to report that we achieved $360 million in run-rate expense savings from actions taken in 2023. Looking ahead to 2024 and beyond, we will continue to focus on our profit improvement program, working to build upon the solid progress we have made to date."

The tables below outline highlights of LMHC's consolidated financial results for the three and twelve months ended December 31, 2023.

Net Written Premium ("NWP") by Business:

Consolidated NWP by business was as follows:

Consolidated Results of Operations:

Combined Ratio:

Equity:

Subsequent Events

On January 31, 2024 the Western European Markets ("WEM") transaction closed and on March 1, 2024 the Andes transaction closed.

On February 28th, 2024, Liberty Mutual Group Inc. announced its intention to redeem €500 million 3.625% Series D Junior Subordinated Notes due 2059, on May 23, 2024, at the redemption price.

Management has assessed material subsequent events through March 6, 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 and twelve months ended December 31, 2023 are available on the Company's Investor Relations website at www.libertymutualgroup.com/investors.

Conference Call Information

On March 7, 2024, 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 financial results. To participate in the event via telephone and to ask a question, please dial 844-481-2837 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=olXpf28v. 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 fifth largest global property and casualty insurer based on 2022 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 27 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