Liberty Mutual Insurance Reports Fourth Quarter and Full Year 2024 Results
Liberty Mutual Holding Company Inc. and its subsidiaries (collectively “LMHC” or the “Company”) reported net income attributable to LMHC of $1.239 billion and $4.383 billion for the three and twelve months ended December 31, 2024, versus income of $654 million and $213 million for the same periods in 2023.
“I’d like to first acknowledge the devastating wildfires that have impacted so many California communities. Our claims professionals are on the ground working tirelessly to support our policyholders during this challenging time,” said Tim Sweeney, Liberty Mutual President & Chief Executive Officer. “Our extremely strong financial position enables us to effectively respond to these events and provide the reassurance and resources our customers need to recover. Turning to our 2024 financial performance, I am pleased to report that we achieved net income attributable to Liberty Mutual Holding Company of $1.2 billion in the fourth quarter. Our disciplined underwriting and operational execution have driven significant improvements, resulting in a combined ratio of 91.5% for the quarter, our lowest in 20 years. We are making remarkable progress toward our goal of achieving a 95% combined ratio in 2025, driven by underwriting and expense discipline in both US Retail Markets and Global Risk Solutions. This progress sets a solid foundation for future success, and we are committed to maintaining this discipline as we now seek to grow in select segments. We are now in a position to pursue profitable growth in the areas where we have achieved target profitability.”
The tables below outline highlights of LMHC’s consolidated financial results for the three and twelve months ended December 31, 2024.
Net Written Premium (“NWP”) by Business:
Consolidated NWP by business was as follows:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
$ in Millions
2024
2023
Change
2024
2023
Change
US Retail Markets
$6,700
$7,069
(5.2 %)
$28,279
$29,859
(5.3 %)
Global Risk Solutions
3,844
4,294
(10.5)
16,416
16,800
(2.3)
Corporate and Other
7
(33)
NM
268
(177)
NM
Total NWP
$10,551
$11,330
(6.9 %)
$44,963
$46,482
(3.3 %)
Foreign exchange effect on growth
0.5
0.1
NWP growth excluding foreign exchange1
(7.4 %)
(3.4 %)
1
Determined by assuming constant foreign exchange rates between periods.
NM = Not Meaningful
Consolidated Results of Operations:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
$ in Millions
2024
2023
Change
2024
2023
Change
Revenues
$12,218
$12,567
(2.8 %)
$50,218
$49,412
1.6 %
Underlying PTOI before limited partnerships income
2,949
1,553
89.9
9,406
4,895
92.2
Catastrophes
(234)
(233)
0.4
(3,890)
(4,684)
(17.0)
Net incurred losses attributable to prior years:
– Asbestos and environmental1
(175)
(110)
59.1
(175)
(110)
59.1
– All other2
(760)
(40)
NM
(683)
521
NM
Current accident year re-estimation3
(20)
(60)
(66.7)
–
–
–
Pre-tax operating income before limited partnerships income
1,760
1,110
58.6
4,658
622
NM
Limited partnerships income4
380
4
NM
1,266
89
NM
Pre-tax operating income
2,140
1,114
92.1
5,924
711
NM
Net realized losses
(623)
(271)
129.9
(1,041)
(296)
NM
Acquisition & integration costs
(25)
(32)
(21.9)
(87)
(90)
(3.3)
Restructuring costs
(4)
(55)
(92.7)
(59)
(121)
(51.2)
Pre-tax income
1,488
756
96.8
4,737
204
NM
Income tax expense
280
102
174.5
1,060
35
NM
Consolidated net income from continuing operations
1,208
654
84.7
3,677
169
NM
Discontinued operations, net of tax
34
9
NM
725
59
NM
Consolidated net income
1,242
663
87.3
4,402
228
NM
Less: Net income attributable to non-controlling interest
3
9
(66.7)
19
15
26.7
Net income attributable to LMHC
1,239
654
89.4
4,383
213
NM
Net income attributable to LMHC excluding unrealized impact5
1,126
697
61.5
4,249
143
NM
Cash flow provided by continuing operations
$1,567
$1,328
18.0 %
$6,469
$3,550
82.2 %
1
Asbestos and environmental is gross of the related adverse development reinsurance (the “NICO Reinsurance Transaction”, which is described further in Reinsurance).
2
Net of earned premium and reinstatement premium attributable to prior years of $46 million and $123 million for the three and twelve months ended December 31, 2024, and $300 million and $340 million for the same periods in 2023.
3
Re-estimation of the current accident year loss reserves for the nine months ended September 30, 2024 and September 30,2023.
4
Limited partnerships income includes LP, LLC and other equity method income within net investment income in the accompanying Consolidated Statements of Income and revenue and expenses from direct investments in natural resources.
5
Excludes unrealized gains on equity securities and the corresponding tax impact.
NM = Not Meaningful
Combined Ratio:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
CONSOLIDATED
2024
2023
Change(Points)
2024
2023
Change(Points)
Combined ratio
Claims and claim adjustment expense ratio
52.5 %
62.4 %
(9.9)
57.9 %
65.3 %
(7.4)
Underwriting expense ratio
28.7
28.7
–
27.6
28.1
(0.5)
Underlying combined ratio
81.2
91.1
(9.9)
85.5
93.4
(7.9)
Catastrophes
2.1
2.0
0.1
8.6
10.3
(1.7)
Net incurred losses attributable to prior years:
– Asbestos and environmental
1.6
0.9
0.7
0.4
0.2
0.2
– All other1
6.8
0.6
6.2
1.4
(1.2)
2.6
Current accident year re-estimation2
(0.2)
0.5
(0.7)
–
–
–
Total combined ratio3
91.5 %
95.1 %
(3.6)
95.9 %
102.7 %
(6.8)
1
Net of earned premium and reinstatement premium attributable to prior years.
2
Re-estimation of the current accident year loss reserves for the nine months ended September 30, 2024 and September 30, 2023.
3
The combined ratio, expressed as a percentage, is a measure of underwriting profitability. This measure should only be used in conjunction with, and not in lieu of, underwriting income and may not be comparable to other performance measures used by the Company’s competitors. The combined ratio is computed as the sum of the following property and casualty ratios: the ratio of claims and claim adjustment expense less managed care income to earned premium; the ratio of insurance operating costs plus amortization of deferred policy acquisition costs less third-party administration income and fee income (primarily related to the Company’s involuntary market servicing carrier operations) and installment charges to earned premium; and the ratio of policyholder dividends to earned premium. Provisions for uncollectible premium and reinsurance are not included in the combined ratio unless related to an asbestos and environmental commutation and certain other run off. Restructuring and acquisition and integration costs are not included in the combined ratio.
Equity:
As of
December 31,
As ofDecember 31,
$ in Millions
2024
2023
Change
Unassigned equity
$34,374
$29,991
14.6 %
Accumulated other comprehensive loss
(3,928)
(5,127)
(23.4)
Non-controlling interest
206
196
5.1
Total equity
$30,652
$25,060
22.3 %
Subsequent Events
On March 2, 2025, the Company announced the agreement to sell its operations in Thailand and Vietnam to Chubb Limited. The Thailand transaction is expected to close by the second quarter of 2025 and the Vietnam transaction is expected to close in 2026, subject to certain closing conditions and regulatory approvals.
There were a series of severe wildfires that impacted areas of Southern California in January 2025. The Company’s preliminary pre-tax estimate of catastrophe losses relating to these California wildfires is $1.2 billion. The preliminary amount includes estimated assessments from the California FAIR Plan and reinsurance recoveries net of reinstatement premium. These values do not consider any subrogation. The catastrophe losses will be recorded in the Company’s Q1 2025 financial statements.
Management has assessed material subsequent events through March 5, 2025, the date the financial statements were available to be issued.
Financial Information
The Company’s financial results, management’s discussion and analysis of operating results and financial condition, accompanying financial statements and other supplemental financial information for the three and twelve months ended December 31, 2024 are available on the Company’s Investor Relations website at www.libertymutualgroup.com/investors.
Conference Call Information
On March 6, 2025, at 10:00 a.m. Eastern Time, Tim Sweeney, Liberty Mutual Insurance President and CEO, will host a conference call to discuss the Company’s fourth quarter financial results. To participate in the event via telephone and to ask a question, please dial 844-481-2837 and request to join into the Liberty Mutual Insurance call. To listen to the call online via PC and view a presentation on financial performance, please log into https://event.choruscall.com/mediaframe/webcast.html?webcastid=imANTA4n. Following the call, a recording of the event will be available on the Investor Relations section of Liberty Mutual’s website, www.libertymutualgroup.com/investors.
Liberty Mutual Insurance and Jaguar Land Rover Announce Exclusive Partnership, Offering Insurance Options to JLR Vehicle Owners
Liberty Mutual Insurance and Jaguar Land Rover North America, LLC (JLR) launched an exclusive partnership on September 1 that seamlessly provides auto insurance to US JLR vehicle owners during the car buying journey.
Liberty Mutual’s digital capabilities and long history working with automotive partners will give JLR drivers the ability to obtain online quotes or speak to an insurance advisor and gain access to exclusive features. These features include genuine original equipment manufacturer (OEM) replacement parts and referral to a JLR retailer for vehicle repairs. Customers can also have vehicles towed to the nearest JLR retailer if needed. Drivers can engage with the insurance solution throughout the shopping and ownership lifecycle of their vehicle, ensuring flexibility, accessibility and an elevated digital experience.
“This agreement with Jaguar Land Rover is a valuable opportunity to embrace evolving consumer buying preferences to solve insurance needs,” said Dan Bernstein, senior vice president and manager of Strategic Partnership Groups, US Retail Markets, Liberty Mutual Insurance. “We have more than 40 years of expertise curating affinity partnerships that drive elevated experiences, and this partnership will enhance the JLR vehicle ownership experience.
“At JLR we are always looking to reimagine and deliver elevated products and services for the most discerning of clients. Partnering with Liberty Mutual will help ensure our shared clients have a comprehensive premium insurance product offering in the market” said Josh Hillman, Director of Financial Services – JLR North America.
Liberty Mutual Insurance Reports Fourth Quarter and Full Year 2023 Results
Liberty Mutual Holding Company Inc. and its subsidiaries (collectively “LMHC” or the “Company”) reported net income attributable to LMHC of $654 million and $213 million for the three and twelve months ended December 31, 2023, versus net income attributable to LMHC of $612 million and $414 million for the same periods in 2022.
“We had a strong finish to the year with net income attributable to LMHC of $654 million for the fourth quarter,” said Tim Sweeney, Liberty Mutual President & Chief Executive Officer. “We continue to make progress toward our 95% combined ratio target by the end of 2025, with 4.7 points of improvement in our underlying combined ratio and 2.3 points of improvement in our total combined ratio from the prior year quarter. We made particularly strong progress in US Retail Markets, where our underlying combined ratio improved by 7.4 points and total combined ratio dropped 6.6 points, as accelerating earned rate and targeted underwriting actions positively impacted the loss ratio. Despite higher loss activity in the quarter, Global Risk Solutions drove 3.7 points of improvement in total combined ratio from full year 2022, driven by lower catastrophe losses and rate actions. Expense efficiencies are also a key part of our profit improvement plan, and I am pleased to report that we achieved $360 million in run-rate expense savings from actions taken in 2023. Looking ahead to 2024 and beyond, we will continue to focus on our profit improvement program, working to build upon the solid progress we have made to date.”
The tables below outline highlights of LMHC’s consolidated financial results for the three and twelve months ended December 31, 2023.
View Full Press Release
Liberty Mutual Insurance named to Computerworld’s 2024 List of Best Places to Work in IT
For the fourth consecutive year, Liberty Mutual Insurance has been named one of Foundry’s Computerworld 2024 Best Places to Work in IT, ranking number 34 among large organizations. The list, which recognizes organizations that provide exciting career opportunities for their IT teams while offering great benefits and compensation, selected Liberty Mutual based on results received from the 2023 Best Places to Work in IT survey.
“Technology is playing an increasingly important role in modern business. IT professionals continue to benefit from this trend, as this year’s winning organizations increase staffing and offer a variety of pathways to upskill, reskill, and diversify their teams,” said Rob O’Regan, global director, content strategy, Foundry. “These companies provide a model for IT and HR leaders who are looking for new ways to attract, engage, and retain talent in an increasingly competitive IT environment.”
Through an investment in comprehensive benefits, flexible hybrid work, and a continuous learning environment, Liberty Mutual is dedicated to supporting employees personally and professionally. With opportunities to work in areas across cloud, cybersecurity, data, software engineering, and data science, employees are empowered to use their skills to drive impactful change and the industry forward.
“At Liberty Mutual, we are not just building platforms and products on a global scale, we are also building the future of the industry with our innovative approach to technology and employment,” said Liberty Mutual Insurance Executive Vice President and Chief Information Officer, Monica Caldas. “Our achievement is a testament to our dedication of empowering our employees to do their best work, providing them with the necessary tools and environment to pave the way forward in a rapidly evolving industry landscape.
The Best Places to Work in IT list is an annual ranking of the top work environments for technology professionals by Foundry’s Computerworld. The list is compiled based on a comprehensive questionnaire regarding company offerings in categories such as benefits, career development, DEI, future of work, training, and retention. In addition, the rankings are reviewed and vetted by a panel of industry experts.
Liberty Mutual Insurance Reports Third Quarter 2023 Results
Liberty Mutual Holding Company Inc. and its subsidiaries (collectively “LMHC” or the “Company”) reported net income attributable to LMHC of $219 million and loss of $441 million for the three and nine months ended September 30, 2023, versus net loss attributable to LMHC of $353 million and $198 million for the same periods in 2022.
“For the third quarter, we reported net income attributable to LMHC of $219 million,” said Tim Sweeney, Liberty Mutual President & Chief Executive Officer. “Solid underwriting results in our Global Risk Solutions business and the tailwind from rising net investment income helped offset continued pressure from inflation and severe weather impacting US personal lines. Despite these challenges, the underlying combined ratio in US Retail Markets improved 2.4 points and we continue to take aggressive rate and non-rate actions to return that business to target profitability. Global Risk Solutions continues to make progress toward its targets, with an improvement in the underlying combined ratio of 2.2 points compared to the prior year quarter. We remain focused on continuing to improve underwriting profitability to achieve a 95% target combined ratio.”
View Full Press Release
Liberty Mutual Insurance Expands Global Surety Operation with Acquisition of House of Guarantees, a Leading Norwegian Managing General Agent
Liberty Mutual Surety (LMS) announced an agreement to acquire the House of Guarantees (HOGS), a managing general agent headquartered in Oslo, Norway. The deal is subject to the approval of regulators and is expected to close early next year. Additional terms of the transaction were not disclosed.
HOGS, a leading Norwegian guarantee provider, has issued guarantees for LMS since 2018.
Under the agreement, LMS retains HOGS’ portfolio of approximately 450 customers and its employees join Liberty Mutual when the deal closes. There will be no business disruption to HOGS brokers and customers.
The acquisition gives LMS a stronger presence in Norway and Sweden, and top industry talent with a proven record of profitable growth, beyond positioning LMS for continued European growth.
“Acquiring HOGS underscores our commitment to the European guarantee market,” said LMS President Tim Mikolajewski. “It simplifies our relationships with customers and allows us to write business more seamlessly.”
Liberty Mutual Insurance Releases Annual Giving Report
Liberty Mutual Insurance released its annual Giving Report, offering a glimpse into the company’s work to provide food and shelter to families in need, support underserved youth and help neighborhoods adapt to changing climate.
Liberty Mutual’s ongoing commitment to advancing security and building resiliency for people and communities did not waiver. In 2022, Liberty Mutual Foundation contributed $50 million to more than 600 nonprofits across the globe. Employees also continued to contribute to the causes they are care about, giving more than $7.5 million to over 7,000 nonprofits globally, with eligible organizations receiving a 100 percent match through the Give with Liberty program. Overall, total corporate and employee giving reached more than $63 million.
Additional 2022 highlights include:
Expanding giving to include climate resiliency through 80 mini environmental grants and $1.3 million in gifts to support nature-based initiatives, green jobs skills training, and community infrastructure.
Awarding 110 gifts of $10,000 each to local charities around the world to celebrate the company’s 110th anniversary. Grant recipients represented a wide range of causes, from fighting hunger to reducing inequality to building more sustainable communities.
Combating the impact of inflation through over $3 million in grants to help nonprofits keep up with the rising costs of goods and services – in addition to over 6,000 mini-grants for employees to give to a nonprofit of their choice.
Reinvigorating Serve with Liberty, the company’s annual days of service, after a two-year hiatus due to the pandemic. In May 2022, 11,000 employees around the world gave more than 45,000 hours of their time to more than 700 nonprofit organizations, planting trees, stocking food pantries, readying kids’ summer camps, cleaning up beaches, and more.
For more information on Liberty Mutual’s 2022 community investments, view the full report.
Liberty Mutual Insurance Appoints Denise Delaney to Head of Sustainability for its Global Commercial Insurance Operations
Liberty Mutual Insurance announced the appointment of Denise Delaney as Head of Sustainability for its Global Risk Solutions (GRS) division.
The newly created role will oversee sustainability priorities, allowing for more integration within the business and how it operates every day. Delaney will report to GRS Chief Strategy Officer Alfredo Sciascia.
“Sustainability is an increasingly critical component of any company strategy and operating model, and as a global commercial and specialty (re)insurer, we see a commitment to it as a massive, once-in-a-generation opportunity – for our customers, our business, and the globe,” said Sciascia. “We’re committed to leveraging our risk expertise and internal assets to support our customers in their own unique journeys. I’m excited for Denise to step into this new role – her leadership will be instrumental to advancing our sustainability strategy and integration across our global business.”
Based in London, Delaney previously has served as Head of Responsible Business for Liberty Specialty Markets (LSM) and has been instrumental in leading multiple sustainability initiatives for GRS. Prior to joining LSM, she was partner and Head of Corporate Sustainability Services for Northern Europe at Environmental Resources Management.
This appointment is the latest development underscoring the Liberty Mutual’s commitment to sustainability. Denise will collaborate with the Liberty Mutual’s Office of Sustainability, led by Francis Hyatt, and the GRS Office of Underwriting, specifically Mike Gosselin, who was named Global Leader of Energy & Transition Risk in 2021.
Liberty Mutual Insurance appoints Rachel Conran Chief Underwriting Officer, Liberty Specialty Markets
Liberty Mutual Insurance’s Global Risk Solutions division (GRS) announced the appointment of Rachel Conran as Chief Underwriting Officer, Liberty Specialty Markets (LSM), effective January 1, 2023. LSM is the international commercial, specialty and reinsurance business of Liberty Mutual.
Conran will report to Matthew Moore, President, GRS Office of Underwriting, and Phil Hobbs, President and Managing Director of LSM.
She will be based in Cologne, Germany and will be responsible for underwriting performance across LSM.
“Rachel’s proven specialty underwriting and leadership skills, together with her track record of delivering impressive underwriting performance, made her the ideal candidate for the role,” said Hobbs. “Her expertise, passion and collaboration will add value to clients and brokers.”
Moore added: ““Our ambition when we created the GRS Office of Underwriting was to build a team of talented leaders who can drive results through underwriting excellence, consistent global product strategies and a common view of risk. Rachel’s appointment completes the GRS team of chief underwriting officers. We will focus on bringing LSM’s expertise and offerings to help clients and brokers across GRS manage complex risks.”
Conran joins from Intact Financial Corporation, where she most recently served as Chief Executive Officer and Board Member of RSA Luxembourg. She has held senior management and chief underwriting roles at leading global insurers, successfully managing sizeable global portfolios of complex products and driving underwriting profitability, financial planning, and strategy.
Liberty Mutual Insurance appoints Mike Gosselin to the newly created role of Global Leader, Energy & Transition Risk
Liberty Mutual Insurance announced the appointment of Mike Gosselin as Global Leader, Energy & Transition Risk.
The newly created role reports to Global Risk Solutions President, Insurance Solutions, Elizabeth Geary.
“Mike will build a team that harnesses our global underwriting and risk engineering expertise to help not only energy companies solve their unique exposures, but also support all companies – regardless of industry – manage risk as they transition from fossil fuels,” said Geary. “In addition, Mike will be responsible for overseeing our entire global energy portfolio, from strategy and profitability to developing key insights and new products that add value to clients, prospects and brokers.”
Based in London, Gosselin brings more than 25 years of global underwriting experience in the energy sector, including 21 years at Liberty Specialty Markets (LSM). Most recently, he served as LSM Chief Underwriting Officer for Specialty Lines, overseeing Energy, Marine, Construction, Property and Aviation.
This appointment is the latest development within the GRS Office of Underwriting, which was formed earlier this year to drive results through underwriting excellence, consistent global product strategies and a common view of risk.