CEO David H. Long said results were affected by investment market volatility and loss-cost inflation.
“Pre-tax net realized investment losses of $671 million along with inflation-driven underwriting margin erosion in some lines of business were the key drivers of Q2 results,” he said in a statement. “While rising interest rates are causing some short-term pressure on investment results, we expect higher net investment income to be a significant tailwind in future periods.”
Liberty Mutual said the total combined ratio was 105 in Q2 compared with 98.1 in Q2 2021. Long said the insurer saw higher severity in personal auto claim but “accelerated rate and targeted underwriting actions” in personal lines should start to improve results during the second half of the year.
For the first half of 2022, Liberty Mutual reported net income of about $156 million compared with over $1.6 billion in 2021. As of June 30, Liberty Mutual has booked about $1.77 billion in catastrophe losses – about $1.1 billion in the second quarter compared with $660 million a year ago.
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.