Liberty Mutual Insurance Reports Second Quarter 2023 Results
"During and subsequent to the quarter end, we announced key organizational changes and executive leadership appointments aimed at enhancing focus on long-term strategic markets, while better leveraging scale advantages to drive target profitability and sustainable success," said
"For the second quarter, we reported a net loss attributable to LMHC of
The tables below outline highlights of LMHC's consolidated financial results for the three and six months ended
Net Written Premium ("NWP") by Business:
Consolidated NWP by business was as follows:
|
Three Months Ended |
Six Months Ended |
|||||
|
$ in Millions |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
|
Global Retail Markets |
|
|
0.2 % |
|
|
1.9 % |
|
|
3,707 |
3,689 |
0.5 |
7,497 |
7,618 |
(1.6) |
|
Corporate and Other |
(47) |
(30) |
56.7 |
(55) |
(108) |
(49.1) |
|
Total NWP |
|
|
0.1 % |
|
|
1.0 % |
|
Foreign exchange effect on growth |
(0.3) |
(0.5) |
||||
|
NWP growth excluding foreign exchange1 |
0.4 % |
1.5 % |
||||
|
1 Determined by assuming constant foreign exchange rates between periods. |
||||||
Consolidated Results of Operations:
|
Three Months Ended |
Six Months Ended |
|||||
|
$ in Millions |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
|
Revenues |
|
|
6.7 % |
|
|
6.5 % |
|
Underlying PTOI before limited partnerships |
|
|
84.2 |
|
|
25.6 |
|
Catastrophes |
(2,267) |
(1,104) |
105.3 |
(3,342) |
(1,761) |
89.8 |
|
Net incurred losses attributable to prior |
||||||
|
- Asbestos and environmental1 |
- |
(5) |
(100.0) |
- |
(5) |
(100.0) |
|
- All other2 |
608 |
141 |
NM |
519 |
132 |
NM |
|
Current accident year re-estimation3 |
(148) |
- |
NM |
- |
- |
- |
|
Pre-tax operating (loss) income before |
(610) |
(313) |
94.9 |
(698) |
63 |
NM |
|
Limited partnerships income (loss)4 |
107 |
468 |
(77.1) |
23 |
832 |
(97.2) |
|
Pre-tax operating (loss) income |
(503) |
155 |
NM |
(675) |
895 |
NM |
|
Net realized losses |
(63) |
(583) |
(89.2) |
(112) |
(673) |
(83.4) |
|
Acquisition & integration costs |
(13) |
(48) |
(72.9) |
(25) |
(57) |
(56.1) |
|
Restructuring costs |
(38) |
2 |
NM |
(40) |
2 |
NM |
|
Pre-tax (loss) income |
(617) |
(474) |
30.2 |
(852) |
167 |
NM |
|
Income tax (benefit) expense |
(150) |
(100) |
50.0 |
(200) |
49 |
NM |
|
Consolidated net (loss) income from |
(467) |
(374) |
24.9 |
(652) |
118 |
NM |
|
Discontinued operations, net of tax |
(115) |
32 |
NM |
2 |
38 |
(94.7) |
|
Consolidated net (loss) income |
(582) |
(342) |
70.2 |
(650) |
156 |
NM |
|
Less: Net income attributable to non- |
3 |
1 |
200.0 |
10 |
1 |
NM |
|
Net (loss) income attributable to LMHC |
(585) |
(343) |
70.6 |
(660) |
155 |
NM |
|
Net (loss) income attributable to LMHC |
(528) |
(225) |
134.7 |
(596) |
362 |
NM |
|
Cash flow provided by continuing operations |
|
|
(55.7 %) |
|
|
(75.5 %) |
|
1 |
Asbestos and environmental is gross of the related adverse development reinsurance (the "NICO Reinsurance Transaction", which is described further in Reinsurance). |
|
2 |
Net of earned premium and reinstatement premium attributable to prior years of |
|
3 |
Re-estimation of the current accident year loss reserves for the three months ended |
|
4 |
Limited partnerships income includes |
|
5 |
Excludes unrealized gains on equity securities, unit linked life insurance, and the corresponding tax impact. |
|
NM = Not Meaningful |
Combined Ratio:
|
Three Months Ended |
Six Months Ended |
|||||
|
CONSOLIDATED |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
|
Combined ratio |
||||||
|
Claims and claim adjustment expense |
64.7 % |
68.1 % |
(3.4) |
65.5 % |
66.1 % |
(0.6) |
|
Underwriting expense ratio |
28.8 |
28.7 |
0.1 |
28.5 |
28.2 |
0.3 |
|
Underlying combined ratio |
93.5 |
96.8 |
(3.3) |
94.0 |
94.3 |
(0.3) |
|
Catastrophes |
20.0 |
10.0 |
10.0 |
14.8 |
8.3 |
6.5 |
|
Net incurred losses attributable to |
||||||
|
- Asbestos and environmental |
- |
0.1 |
(0.1) |
- |
- |
- |
|
- All other1 |
(5.4) |
(1.3) |
(4.1) |
(2.3) |
(0.7) |
(1.6) |
|
Current accident year re-estimation2 |
1.3 |
- |
1.3 |
- |
- |
- |
|
Total combined ratio |
109.4 % |
105.6 % |
3.8 |
106.5 % |
101.9 % |
4.6 |
|
1 |
Net of earned premium and reinstatement premium attributable to prior years. |
|
2 |
Re-estimation of the current accident year loss reserves for the three months ended |
|
3 |
The combined ratio, expressed as a percentage, is a measure of underwriting profitability. This measure should only be used in conjunction with, and not in lieu of, underwriting income and may not be comparable to other performance measures used by the Company's competitors. The combined ratio is computed as the sum of the following property and casualty ratios: the ratio of claims and claim adjustment expense less managed care income to earned premium; the ratio of insurance operating costs plus amortization of deferred policy acquisition costs less third-party administration income and fee income (primarily related to the Company's involuntary market servicing carrier operations) and installment charges to earned premium; and the ratio of policyholder dividends to earned premium. Provisions for uncollectible premium and reinsurance are not included in the combined ratio unless related to an asbestos and environmental commutation and certain other run off. Restructuring and acquisition and integration costs are not included in the combined ratio. |
Equity:
|
As of |
As of |
||
|
$ in Millions |
2023 |
2022 |
Change |
|
Unassigned equity |
|
|
(2.4 %) |
|
Accumulated other comprehensive (loss) |
(7,120) |
(7,830) |
(9.1) |
|
Non-controlling interest |
224 |
216 |
3.7 |
|
Total equity |
|
|
0.1 % |
Subsequent Events
Management has assessed material subsequent events through
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 six months ended
Conference Call Information
On
About
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
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.
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.
|
Contact: |
Investor Relations |
Media Relations |
|
|
|
|
|
857-224-6655 |
617-833-0926 |
SOURCE
Manulife reports strong topline results in 2Q23 with APE sales up 12%, NBV up 10%, new business CSM of $592 million up 15% and Global Wealth and Asset Management net inflows of $2.2 billion. Net income attributed to shareholders was $1.0 billion in 2Q23 and core earnings were $1.6 billion with strong EPS and core EPS growth
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