Liberty Mutual’s quarterly profit falls 7% to $2.1 billion

Liberty Mutual  reported third-quarter 2026 net income of $2.07 billion, down 7% from a year earlier, as catastrophe losses and underwriting expenses increased. Revenue rose 1.2% to $12.88 billion.

Net written premiums declined 2.8% to $10.74 billion. US Retail Markets premiums fell 5.6% to $6.72 billion, while Global Risk Solutions premiums increased 0.2% to $4 billion.

The consolidated combined ratio rose to 89.5% from 84.7%. Catastrophe losses increased to $585 million from $114 million, while the underlying combined ratio, excluding catastrophes and prior-year development, deteriorated 4.5 points to 91.9%, largely reflecting higher underwriting expenses.

Favorable prior-year development contributed $840 million to pretax operating income, compared with $416 million a year earlier. Limited partnership income increased 36.4% to $810 million, helping offset weaker underwriting results.

For the first nine months of 2026, net income increased 32.6% to $6.75 billion, and the combined ratio improved to 88.1% from 89.5%. Total equity reached $44.37 billion, up 11.2% from year-end 2025.

Liberty Mutual also disclosed an agreement to acquire Brazilian surety provider Austral Seguradora. The transaction is expected to close in 2027, subject to regulatory approval and customary closing conditions.