Liberty Mutual Insurance Reports Second Quarter 2018 Results

BOSTON, Massachusetts, Aug. 9 -- Liberty Mutual Group issued the following news release:

Liberty Mutual Holding Company and its subsidiaries (collectively "LMHC"

or the "Company") reported net income attributable to LMHC of $981 million

and $1.629 billion for the three and six months ended June 30, 2018, increases of $855 million and $1.152 billion over the same periods in 2017. Including $1 million and zero of net loss attributable to non-controlling interest, consolidated net income for the three and six months ended June 30, 2018 was $980 million and $1.629 billion, respectively.

"Building on the progress made in the first quarter, net income attributable to Liberty Mutual Holding Company increased to $981 million for the second quarter of 2018," said David H. Long, Liberty Mutual Chairman and Chief Executive Officer.

"The combined ratio in the quarter was 97.9% as global catastrophes returned to historical levels and core underwriting results improved across many business segments. Favorable partnership, LLC and other equity method investment valuations and an after-tax gain of $464 million related to the sale of Liberty Life Assurance of Boston added to profitability. Growth was robust at 7%."

Second Quarter Highlights

* Net written premium ("NWP") for the three months ended June 30, 2018 was $10.071 billion, an increase of $685 million or 7.3% over the same period in 2017.

* Pre-tax operating income("PTOI") before partnerships, limited liability companies ("LLC") and other equity method income for the three months ended June 30, 2018was $471million, an increase of $452 million over the same period in 2017.

* Partnerships, LLC and other equity method income for the three months ended

June 30, 2018 was $291 million, an increase of $185 million or 174.5% over the same period in 2017.

* Net realized (losses) gains for the three months ended June 30, 2018 were ($59) million versus $18 million for the same period in 2017.

* Ironshore Inc. ("Ironshore") acquisition and integration costs for the three months ended June 30, 2018 were $10 million, a decrease of $16 million or 61.5% from the same period in 2017.

* Restructuring costs for the three months ended June 30, 2018 were $28 million versus zero for the same period in 2017.

* Loss on extinguishment of debt for the three months ended June 30, 2018 was $3 million versus zero for the same period in 2017.

* Discontinued operations, net of tax, for the three months ended June 30, 2018 were $471 million, an increase of $419 million over the same period in 2017.

* Consolidated net income for the three months ended June 30, 2018was $980million, an increase of$853million over the same period in 2017.

* Net loss attributable to non-controlling interest for the three months ended June 30, 2018was $1 million versus net income attributable to non-controlling interest of $1 million for the same period in 2017.

* Net income attributable to LMHC for the three months ended June 30, 2018 was $981million, an increase of $855 million over the same period in 2017.

* Cash flow provided by continuing operations for the three months ended June 30, 2018was $1.120 billion, an increase of $136 million or 13.8% over the same period in 2017.

The consolidated combined ratio before catastrophes 1, net incurred losses attributable to prior years and current accident year re-estimation3for the three months ended June 30, 2018was 92.3%, a decrease of 1.3points from the same period in 2017. Including the impact of catastrophes, net incurred losses attributable to prior years and current accident year re-estimation, the total combined ratio 4 for the three months ended June 30, 2018 was 97.9%, a decrease of4.9points from the same period in 2017.

Year-to-date Highlights

To view the text, click here: https://www.libertymutualgroup.com/about-liberty-mutual-site/news-site/Documents/Q2%202018_Press%20Release%20-%20FINAL.PDF

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