Liberty Mutual reports stronger underwriting, investment gains in Q2

Liberty Mutual reported second-quarter net income of $2.63 billion, up 43% from a year earlier, as lower catastrophe losses and strong investment performance more than offset modest pressure on premium growth.

The insurer’s consolidated combined ratio improved to 86.4% from 87.2% a year ago, while the six-month combined ratio improved to 87.3% from 91.9%. Catastrophe losses declined 44% in the quarter and 61% during the first half of the year.

Net written premium declined 1.1% to $11.1 billion in the quarter. U.S. Retail Markets (USRM) premiums fell 4.1% to $6.6 billion, while Global Risk Solutions (GRS) continued to grow, with premiums increasing 3.5% to $4.4 billion.

Investment income provided a significant boost to earnings. Limited partnership income more than doubled to $850 million in the quarter, helping pre-tax operating income rise nearly 30% to $3.26 billion. Six-month net income attributable to Liberty Mutual reached $4.69 billion, up 63% year over year.