Liberty Mutual Boosts Profit for Q4 and Year
Liberty Mutual reported net income of $162 million for the fourth quarter and $758 million for the full year 2020, versus a fourth quarter net loss of $301 million and net income $1.037 billion for full year 2019
Liberty Mutual Chairman and Chief Executive Officer David H. Long credited “favorable core underwriting results and strong investment performance” for the good results. He noted the results were achieved despite COVID-19 losses, prior year reserve strengthening, and a one-time charge from an early retirement offer.
“Throughout 2020, in the face of challenging economic conditions, an ongoing pandemic, an increased awareness of systemic racial injustice, and a rapidly evolving insurance risk landscape, our employees remained focused and our business proved resilient,” said Long.
The investment portfolio contributed almost $3.4 billion of pre-tax income in the year.
Fourth Quarter:
- Net written premium for the quarter was $10.095 billion, an increase of $344 million or 3.5% over the same period in 2019.
- The consolidated combined ratio before catastrophes, COVID-19, net incurred losses attributable to prior years and current accident year re-estimation for the quarter was 92.8%, a decrease of 4.5 from the same period in 2019.
- Including the impact of catastrophes, COVID-19, net incurred losses attributable to prior years and current accident year re-estimation, the total combined ratio for the quarter was 101.9%, a decrease of 4.8 points from the same period in 2019.
Full Year
- Net written premium for the twelve months was $40.624 billion, an increase of $810 million or 2.0% over the same period in 2019.
- The consolidated combined ratio before catastrophes, COVID-19, and net incurred losses attributable to prior years for the year was 91.6%, a decrease of 3.8 points from the same period in 2019.
- Including the impact of catastrophes, COVID-19, and net incurred losses attributable to prior years, the total combined ratio for the year was 101.8%, an increase of 0.1 points over the same period in 2019.
Source: Liberty Mutual
