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Liberty Mutual unveils losses in Q3 and 9M- Newshubweek

Liberty Mutual unveils losses in Q3 and 9M
Written by Arindam


Liberty Mutual unveils losses in Q3 and 9M

Liberty Mutual has found itself in the red, with the insurance group announcing losses not only in the third quarter but also in the nine months ended September 30.

According to the latest set of financial results released by Liberty Mutual Holding Company and its subsidiaries (LMHC), the net loss attributable to LMHC in the third quarter amounted to $353 million, while the net loss attributable to LMHC in the first nine months stood at $198 million. In the same periods in 2021, the firm enjoyed earnings.

Pointing to the culprits, Liberty Mutual chair and chief executive David H. Long said: “Elevated catastrophe losses and continued investment market volatility drove a net loss attributable to LMHC of $353 million in the quarter. Pre-tax net catastrophe losses in the quarter were $1.4 billion including $835 million from Hurricane Ian.

“The devastation left behind is a very real reminder of our purpose, and we are focused on supporting our impacted policyholders. Our limited partnership portfolio produced a pre-tax net loss of $272 million reflecting broader equity market declines through June, as these results are reported on a one-quarter lag. These headwinds were partially offset by $319 million of prior accident year catastrophe and non-catastrophe reserve releases.”

Meanwhile, the CEO described rising reinvestment yields as “encouraging,” saying they will be a significant tailwind for investment income over time.

“Despite this improving outlook for investment income, we remain focused on underwriting profitability,” stated Long, who leads more than 45,000 Liberty Mutual colleagues in 29 countries and economies.

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Arindam

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