Liberty Mutual has discovered itself within the crimson, with the insurance coverage group saying losses not solely within the third quarter but additionally within the 9 months ended September 30.
According to the newest set of monetary outcomes launched by Liberty Mutual Holding Company and its subsidiaries (LMHC), the web loss attributable to LMHC within the third quarter amounted to $353 million, whereas the web loss attributable to LMHC within the first 9 months stood at $198 million. In the identical durations in 2021, the agency loved earnings.
Pointing to the culprits, Liberty Mutual chair and chief govt David H. Long mentioned: “Elevated disaster losses and continued funding market volatility drove a internet loss attributable to LMHC of $353 million within the quarter. Pre-tax internet disaster losses within the quarter had been $1.4 billion together with $835 million from Hurricane Ian.
“The devastation left behind is a very real reminder of our purpose, and we are focused on supporting our impacted policyholders. Our limited partnership portfolio produced a pre-tax net loss of $272 million reflecting broader equity market declines through June, as these results are reported on a one-quarter lag. These headwinds were partially offset by $319 million of prior accident year catastrophe and non-catastrophe reserve releases.”
Meanwhile, the CEO described rising reinvestment yields as “encouraging,” saying they are going to be a big tailwind for funding earnings over time.
“Despite this improving outlook for investment income, we remain focused on underwriting profitability,” said Long, who leads greater than 45,000 Liberty Mutual colleagues in 29 nations and economies.