10th August 2022

Liberty Mutual reports net loss

Liberty Mutual reported a net loss attributable to LMHC of $343m and net income attributable to LMHC of $155m for the three and six months ended June 30, 2022, versus net income attributable to LMHC of $769m and $1.625bn for the same periods in 2021.
“Investment market volatility and insurance loss cost inflation persisted in the second quarter resulting in a net loss attributable to LMHC of $343m” said David H. Long, Liberty Mutual chairman and ceo.
Pre-tax net realized investment losses of $671m along with inflation driven underwriting margin erosion in
some lines of business were the key drivers of Q2 results. 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.
The underlying combined ratio in the quarter increased 5.0 points to 96.8 reflecting elevated severity in private
passenger auto, though margin improvement continued in commercial markets. Accelerated rate and targeted
underwriting actions in personal lines will moderate growth and begin to improve the loss ratio in the second half of
the year as rate increases earn in over time.”

Liberty Mutual Trends(169 artices)