Liberty Mutual Holding Co. Inc. reported $272 million net profit for its 2014 first quarter, a decline of $46 million or 14.5 percent from $318 million net profit reported during the same period in 2013.
The Boston-based insurer saw higher catastrophe losses during its latest quarter. The company’s 2014 first quarter Cat losses came in at $487 million, an increase of $265 million or 119.4 percent from $222 million Cat losses one year ago.
Net written premium for the 2014 first quarter was $8.786 billion, an increase of $355 million or 4.2 percent over the same period in 2013.
The total combined ratio for the latest quarter was 99.6 percent (including a claims and claim adjustment expense ratio of 63.2 percent and an underwriting expense ratio of 30.7 percent), deteriorating from 98.1 percent (including a claims and claim adjustment expense ratio of 64.5 percent and an underwriting expense ratio of 30.3 percent) during the same period in 2013. The latest combined ratio excluding catastrophes and net incurred losses attributable to prior years was 94.0 percent, compared to 94.9 percent one year ago.
Overall revenues for the first quarter were $9.659 billion, an increase of $694 million or 7.7 percent from one year ago.
“Our first quarter results reflect the balance of positive rate and retention in our primary lines of business and continued improved profitability of our core businesses,” Liberty Mutual Insurance Chairman and CEO David H. Long said in a statement.
Net income for continuing operations was $326 million for the latest quarter, up 7 percent year-over-year, Long said.
“Including the loss in discontinued operations of $64 million, primarily due to the sale of our company in Argentina, consolidated net income was $262 million,” he added. “Growth remained healthy, with net written premium increasing 8 percent in local currencies, or 4 percent after the impact of foreign exchange.”
“”We are encouraged by the further improvement of our underwriting margins,” CEO Long said.
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