NWP for Liberty Mutual in Q1 2020 was $10.03bn, which is 3.5% more than the NWP of $9.69bn reported during the same period in 2019
The Liberty Mutual Insurance world headquarters building, located in Boston. (Credit: User54871/Wikipedia.org)
Liberty Mutual has reported a 22.4% drop in its net income for the first quarter of 2020 at $519m compared to $669m it made in the same quarter of 2019.
The revenues of the US insurance group for the three months ended 31 March 2020 dropped 2% in Q1 2020 to $10.45bn compared to $10.66bn in the year before quarter.
Net written premium (NWP) for the insurance group in Q1 2020 was $10.03bn, which is 3.5% more than the NWP of $9.69bn reported during the same period in 2019.
Liberty Mutual’s pre-tax operating income before partnerships, limited liability companies and other equity method income for the reported quarter was $705m, marking a 6.8% increase to $660m recorded in the same quarter of last year.
The group reported $247m in net realised losses in Q1 2020 compared to $250m of net realized gains for the same period in 2019.
Liberty Mutual’s unit linked life insurance for Q1 2020 was $114m compared to -$61m reported for the same period in 2019.
The global retail markets (GRM) division in Q1 2020 reported NWP of $6.5bn, which is more or less same as the NWP in the year before quarter.
The insurer’s global risk solutions (GRS) unit saw a 11.1% increase in its NWP for Q1 2020 at $3.52bn compared to $3.17bn in Q1 2019.
Liberty Mutual CEO comments on the Q1 2020 results
Liberty Mutual chairman and CEO David Long said: “Operational results across both GRM and GRS were strong with net written premium growth of 3.5% and a combined ratio of 96.3%. Our investment portfolio was impacted by the market volatility surrounding COVID-19 as we recognized losses of $247 million from a decline in market value in public equities.
“Our balance sheet was further impacted by unrealized investment losses of $576 million from the fixed income portfolio, which contributed to a 2% decline in equity. Despite the challenges and uncertainties posed by COVID-19, we are confident in our ability to withstand this crisis and to continue to support our customers when they need us most.”