Liberty Mutual Holding Co. concluded its 2014 third quarter with another jump in net income, higher revenues, a new reinsurance agreement and more than $1 billion in debt raised to help strengthen its balance sheet.
“These transactions further strengthened the balance sheet and the overall financial position of the company,” Liberty Mutual President and CEO David Long said in a statement.
Consolidated net income for the company, when catastrophe losses and other expenses are factored in, hit $605 million, up more than 26 percent from the 2013 third quarter.
Revenue before catastrophes and net incurred losses attributable to prior years surpassed $10 billion, a steady 2.5 percent increase over more than $9.8 billion in revenue from the same period a year ago.
During the quarter, catastrophe losses also improved over the 2013 third quarter. As well, Long credited the company’s new reinsurance agreement with National Indemnity Co. as another highlight, which helped mitigate “the uncertainty of certain long-tail liabilities.”
Here are Liberty Mutual’s third quarter highlights:
- The consolidated combined ratio landed at 96.6, including net incurred net incurred losses attributable to prior years and current accident year re-estimation. That’s a 2.4-point improvement over the same period last year.
- Net written premium came in at $9.45 billion, a $253 million, or 2.8 percent jump over the 2013 third quarter.
- Catastrophes produced $288 million in losses, a $4 million, or 1.4 percent drop from the same period last year.
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