Liberty Mutual Insurance Reports Third Quarter 2022 Results

boston, November 3, 2022 /PRNewswire/ — Liberty Mutual Holding Company Inc. and its subsidiaries (collectively, “LMHC” or the “Company”) reported a net loss attributable to LMHC as follows. $353 million net loss attributable to LMHC $198 million Closed 3 and 9 months September 30, 2022versus net income attributable to LMHC $721 million When $2.346 billion Same period in 2021.

“Increased catastrophe losses and continued investment market volatility resulted in a net loss attributable to LMHC. $353 million in the quarter,’ said David H. Long, Chairman and CEO of Liberty Mutual. “The net catastrophe loss before tax for the quarter was $1.4 billion include $835 million From Hurricane Ian. The devastation left behind is a great reminder of our purpose and we remain focused on supporting impacted policyholders. generated a net loss of $272 million These results are reported one quarter behind, so they reflect the broader equity market decline through June. These headwinds $319 million Release of catastrophe and non-catastrophe reserves for the previous accident year.

“Higher reinvestment yields are encouraging and will provide a significant tailwind for investment returns over time. Despite this improved investment return outlook, we remain focused on underwriting profitability. U.S. personal product rate execution continued in the quarter as personal vehicle prices rose significantly.Quarterly loss ratio for global retail markets continued to improve from the second quarter. “We expect further improvements in future quarters as these price increases continue, and we will continue to drive price increases across our product lines.”

The following tables summarize LMHC’s three-month and nine-month consolidated performance highlights. September 30, 2022.

Net Premiums Written by Business (“NWP”):

Consolidated NWP by business is as follows.


3 months ended

September 30

9 months ended

September 30

one million dollars

2022

2021

Change

2022

2021

Change

global retail market

$9,050

$7,757

16.7%

$25,605

$22,082

16.0%

Global risk solution

4,002

3,834

4.4

11,670

10,771

8.3

Corporation/Other

(437)

(186)

134.9

(572)

(202)

183.2

Total NWP

$12,615

$11,405

10.6%

$36,703

$32,651

12.4%

FX impact on growth



(1.5)



(1.1)

NWP Growth Excluding Forex1



12.1%



13.5%

1

It is determined assuming a constant foreign exchange rate between periods.

Consolidated operating results:


3 months ended

September 30

9 months ended

September 30

middle dollar millions

2022

2021

Change

2022

2021

Change

Earnings

$12,740

$12,370

3.0%

$36,829

$35,979

2.4%

Underlying PTOI before limited partnership income

$928

$827

12.2%

$2,541

$2,996

(15.2%)

catastrophe

(1,406)

(1,216)

15.6

(3,168)

(2,915)

8.7

Net incurred loss attributable to prior years:







– Asbestos and the environment1

– everything else2

319

178

79.2

461

231

99.6

Re-estimate for current accident year3

(143)

NM

Pre-tax operating (loss) income before limited partnership income

(302)

(212)

42.5

(166)

312

NM

Limited Partnership (Loss) IncomeFour

(272)

1,000

NM

562

2,792

(79.9)

Pre-tax operating (loss) profit

(574)

788

NM

396

3,104

(87.2)

Net realized gain (loss)

53

20

165.0

(762)

83

NM

Unit-linked life insurance

17

(7)

NM

137

(95)

NM

Acquisition and integration costs

(twenty three)

(Four)

NM

(80)

(13)

NM

Structural reform expenses

(Five)

(36)

(86.1)

(Five)

(147)

(96.6)

Pre-tax (loss) profit

(532)

761

NM

(314)

2,932

NM

Income tax (benefit) expenses

(179)

39

NM

(117)

584

NM

Consolidated net income (loss)

(353)

722

NM

(197)

2,348

NM

Less: net income attributable to non-controlling interests

1

NM

1

2

(50.0)

Net (loss) income attributable to LMHC

(353)

721

NM

(198)

2,346

NM

Net (loss) income attributable to LMHC excluding unrealized impactsFive

(583)

701

NM

Four

2,146

(99.8)

Cash flow from continuing operations

$2,223

$1,814

22.5%

$4,012

$4,681

(14.3%)

1

Asbestos and the environment are aggregates of related adverse development reinsurance (“NICO Reinsurance Transactions”, further described in Reinsurance).

2

$107 million and $152 million for the three and nine months ended September 30, 2022, $101 million and $153 million for the same period in 2021 Net attributable premiums earned and reinstated.

3

Re-estimation of the loss reserve for the six months ended 30 June 2022.

Four

Limited partnership income includes LP, LLC and other equity method income in Net investment income and income and expenses from direct investments in natural resources in the accompanying consolidated statements of income.

Five

Excludes unrealized equity gains, unit-linked life insurance and related tax impacts.


NM = no meaning

Combined ratio:


3 months ended

September 30

9 months ended

September 30

Linking

2022

2021

Change
(point)

2022

2021

Change
(point)

combined ratio







Claims/claims settlement expense ratio

67.6%

65.1%

2.5

67.1%

63.4%

3.7

underwriting expense ratio

27.6

29.5

(1.9)

28.3

29.3

(1.0)

Underlying combined ratio

95.2

94.6

0.6

95.4

92.7

2.7

catastrophe

11.7

11.5

0.2

9.2

9.5

(0.3)

Net incurred loss attributable to prior years:







– Asbestos and the environment

– everything else1

(2.7)

(1.7)

(1.0)

(1.4)

(0.9)

(0.5)

Re-estimate for current accident year2

1.2

1.2

total combined ratio3

105.4%

104.4%

1.0

103.2%

101.3%

1.9

1

Net earned and reinstatement premiums attributable to prior years.

2

Re-estimation of the loss reserve for the six months ended 30 June 2022.

3

The combined ratio, expressed as a percentage, is a measure of underwriting profitability. This metric should only be used in conjunction with, and not as a substitute for, underwriting revenue and may not be comparable to other performance metrics used by our competitors. The combined ratio is calculated as the sum of the following loss ratios and loss ratios: Amortization of insurance operating expenses and deferred acquisition costs, less third-party managed income and fee income (primarily related to our involuntary market service provider business) and premiums earned, net of installment commissions ratio to The ratio of policyholder dividends to earned premiums. Uncollectible premiums and reinsurance provisions are not included in the combined ratio unless related to asbestos and environmental exchanges and certain other runoffs. The combined ratio excludes restructuring, acquisition and integration costs.

capital:


As of September 30,

As of December 31,


one million dollars

2022

2021

Change

unallocated shares

$29,210

$28,776

1.5%

Accumulated other comprehensive (loss) income

(8,454)

(960)

NM

Non-controlling interest

200

32

NM

total capital

$20,956

$27,848

(24.7%)

NM = no meaning




Subsequent event

Management has evaluated significant subsequent events in the following ways: November 2, 2022the date the financial statements became available for issuance.

Financial information

the company’s financial results for the three and nine months ended, management’s discussion and analysis of its results of operations and financial condition, accompanying financial statements, and other supplementary financial information; September 30, 2022 are available on our IR website. www.libertymutualgroup.com/investors.

About Liberty Kyosai

At Liberty Mutual, we believe progress happens when people feel safe. By protecting against the unexpected and serving it with respect, we help people embrace today and confidently pursue tomorrow.

Founded in 1912, head office location bostontoday we are the sixth largest property and casualty insurer in the world based on gross premiums written in 2021. We also rank 78th Placed on the Fortune 100 list of America’s largest companies based on 2021 revenue.Current December 31, 2021we had $48.2 billion Annual consolidated sales.

We employ over 45,000 people in 29 countries and regions around the world. We offer a wide range of insurance products and services, including personal auto, homeowners, specialty insurance, reinsurance, commercial multiple perils, workers compensation, commercial auto, general liability, surety, and commercial property. I’m here.

For more information, see: www.libertymutualinsurance.com.

risk and uncertainty

The extent of the impact of coronavirus on our future operating results will depend on litigation developments, legislative or regulatory actions and interventions, length and severity of coronavirus (including second wave), level, vaccine acceptance, and Such as the actions of government officials to contain the coronavirus or treat its effects. The following may affect our business and operations:

  • Disruption to business operations due to working from home or the closure of our headquarters or offices, agent and broker offices, and the quarantine of employees, customers, agents, brokers and suppliers in areas affected by the outbreak .
  • Disruptions in business operations caused by travel restrictions and reduced consumer spending on new homes and new vehicles may reduce demand for insurance.
  • Disruption in business operations due to lower customer salaries and earnings that could impact insurance revenues.
  • Increased claims related to trade credit, general liability, workers compensation, and event cancellation compensation, among others.
  • Administrative or legislative orders or court decisions expanding the scope of property insurance policies to cover business interruptions caused by COVID-19.When
  • Financial market turmoil will reduce the value of our investment portfolio.

A significant increase in the number of people infected with the new coronavirus, its spread in a wide range of countries and regions, or the prolonged spread of the virus could have an adverse economic impact on our company.

Cautionary Note Regarding Forward-Looking Statements

This report contains forward-looking statements that are intended to enhance the reader’s ability to assess the future financial and performance of the Company. Forward-looking statements include, but are not limited to, statements that express our beliefs regarding future operations, strategies, financial results, changes in investment markets or other developments that may ”, “expect”, and other phrases. should”, “believe”, “expect”, “estimate”, “intend” or similar expressions. These forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control and are subject to change. actual results may differ significantly.

contact:

PR for investors

Media contact point


Nick Vasilakos

Rich Anjuvine


857-224-6655

617-833-0926

SOURCE Liberty Mutual Insurance

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