Boston-based Liberty Mutual Group reported net income of $360 million for the three months ended March 31, 2008, an increase of $10 million over the same period in 2007.
Net written premium for the first quarter was $6.256 billion, an increase of $569 million or 10.0 percent over the same period in 2007.
The first quarter’s combined ratio before catastrophes and net incurred losses attributable to prior years was 99.1 percent, unchanged from the same period in 2007. Including the impact of catastrophes and net incurred losses attributable to prior years, the combined ratio for the first three months decreased 0.4 points to 100.7 percent.
“Despite significant competition, higher catastrophe losses and a global credit crisis, our results in the quarter were solid,” said Edmund F. Kelly, chairman, president and chief executive officer of Liberty Mutual. He said domestic premium growth and profitability were strong, enhanced by the acquisition of Ohio Casualty in 2007 and continued growth in international operations.
The firm’s investment results reflected “minimal exposure to sub-prime mortgages,” Kelly said.
Also in the first quarter, on January 9, the company through its Brazilian subsidiary, Liberty International Brazil Ltda., acquired Indiana Seguros, S.A., a writer of primarily auto insurance in Brazil.
Since the close of the first quarter, on April 23, 2008, LMG announced it would be acquiring Safeco for approximately $6.2 billion. The transaction is targeted to close in the third quarter of 2008.
Source: Liberty Mutual
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