Liberty Mutual Profit Falls in Q2

Boston-based Liberty Mutual Group reported net income of $220 million for the second quarter of 2010, a decrease of $48 million or 17.9 percent from the same period in 2009.

Including the impact of catastrophes, the company’s combined ratio for the three months ended June 30, 2010 increased 4.4 points to 104.7 percent.

The combined ratio before catastrophes was 96.6 percent, a decrease of 2.3 points from the same period in 2009.

“We turned in another quarter of solid earnings during a period of significant natural catastrophe activity,” said Edmund F. Kelly, chairman and CEO of Liberty Mutual Group Inc.

Other Second Quarter Results

• Revenues for the second quarter were $8.066 billion, an increase of $236 million or 3.0 percent over the same period in 2009.
• Net written premium was $7.283 billion, an increase of $379 million or 5.5 percent over the same period in 2009.
• Pre-tax operating income was $188 million, a decrease of $210 million or 52.8 percent from the same period in 2009.

Year-to-Date Results

• Revenues for the six months ended June 30, 2010 were $16.256 billion, an increase of $1.020 billion or 6.7 percent over the same period in 2009.
• Net written premium was $14.492 billion, an increase of $560 million or 4.0 percent over the same period in 2009.
• Net income was $535 million, an increase of $245 million or 84.5 percent over the same period in 2009.
• Including the impact of catastrophes and net incurred losses attributable to prior years, the company’s combined ratio increased 3.6 points to 103.5 percent. The combined ratio before catastrophes and net incurred losses attributable to prior years was 97.2 percent, a decrease of 1.0 point from the same period in 2009.

Topics Profit Loss