Liberty Mutual Group reported net income of $274 million for the three months ended June 30, 2009, a decrease of $26 million from the same period in 2008. Net income excluding private equity (loss) income was $287 million in the quarter versus $262 million in the prior year.
“We are pleased with our operating results,” said Edmund F. Kelly, Chairman, President and CEO of Liberty Mutual Group Inc. “Our results reflect disciplined underwriting and pricing in a price sensitive global insurance market.”
Second Quarter Highlights
- Revenues for the three months ended June 30, 2009 were $7.830 billion, an increase of $882 million or 12.7% over the same period in 2008.
- Net written premium for the three months ended June 30, 2009 was $6.904 billion, an increase of $625 million or 10.0% over the same period in 2008.
- Pre-tax operating income before private equity (loss) income for the three months ended June 30, 2009 was $427 million, an increase of $78 million or 22.3% over the same period in 2008.
- Pre-tax operating income for the three months ended June 30, 2009 was $407 million, consistent with the same period in 2008.
- Net income for the three months ended June 30, 2009 was $274 million, a decrease of $26 million or 8.7% from the same period in 2008.
- Cash flow from operations for the three months ended June 30, 2009 was $603 million, a decrease of $476 million or 44.1% from the same period in 2008.
The combined ratio before catastrophes1 and net incurred losses attributable to prior years2 for the three months ended June 30, 2009 was 98.8%, an increase of 0.8 points over the same period in 2008. Including the impact of catastrophes and net incurred losses attributable to prior years, the Company’s combined ratio for the three months ended June 30, 2009 decreased 1.7 points to 100.2%.
Year-to-Date Highlights
- Revenues for the six months ended June 30, 2009 were $15.236 billion, an increase of $1.403 billion or 10.1% over the same period in 2008.
- Net written premium for the six months ended June 30, 2009 was $13.932 billion, an increase of $1.397 billion or 11.1% over the same period in 2008.
- Pre-tax operating income before private equity (loss) income for the six months ended June 30, 2009 was $831 million, an increase of $50 million or 6.4% over the same period in 2008.
- Pre-tax operating income for the six months ended June 30, 2009 was $438 million, a decrease of $461 million or 51.3% from the same period in 2008.
- Net income for the six months ended June 30, 2009 was $302 million, a decrease of $358 million or 54.2% from the same period in 2008.
- Cash flow from operations for the six months ended June 30, 2009 was $988 million, a decrease of $704 million or 41.6% from the same period in 2008.
- The combined ratio before catastrophes and net incurred losses attributable to prior years for the six months ended June 30, 2009 was 98.0%, a decrease of 0.5 points from the same period in 2008. Including the impact of catastrophes and net incurred losses attributable to prior years, the Company’s combined ratio for the six months ended June 30, 2009 decreased 1.5 points to 99.8%.
- Net income for the six months ended June 30, 2009 was $302 million, a decrease of $358 million or 54.2% from the same period in 2008.
- Cash flow from operations for the six months ended June 30, 2009 was $988 million, a decrease of $704 million or 41.6% from the same period in 2008.
- The combined ratio before catastrophes and net incurred losses attributable to prior years for the six months ended June 30, 2009 was 98.0%, a decrease of 0.5 points from the same period in 2008. Including the impact of catastrophes and net incurred losses attributable to prior years, the Company’s combined ratio for the six months ended June 30, 2009 decreased 1.5 points to 99.8%.
Note :
1 Catastrophes include all current and prior year catastrophe losses including assessments from the Texas Windstorm Insurance Association (“TWIA”) and exclude losses related to the Company’s external reinsurance assumed lines (assumed voluntary reinsurance and reinsurance assumed through Lloyd’s Syndicate 4472) except for losses related to the events of September 11, 2001, the 2004 U.S. Hurricanes, the 2005 U.S. Hurricanes and the September 2008 Hurricanes. Catastrophe losses, where applicable, include the impact of accelerated earned catastrophe premiums and earned reinstatement premiums.
2 Net incurred losses attributable to prior years is defined as incurred losses attributable to prior years (excluding prior year losses related to natural catastrophes and the events of September 11, 2001) including both earned premium attributable to prior years and amortization of retroactive reinsurance gains.
