Liberty Mutual profit falls by $1bn in 2017

Liberty Mutual Holding Company (LMHC) has seen its net income fall by $989 million year on year to $17 million.

The decline in net profit was driven by record catastrophes, adverse development on commercial automobile, and the charge associated by the change in the tax law.

“While the results in 2017 did not meet expectations, we are encouraged by signs of market firming across each of our businesses,” said CEO David Long.

“Subsequent to year-end, we announced the sale of Liberty Life Assurance Company of Boston to Lincoln Financial and a realignment of our core business,” Long said. “These actions will allow the organization to focus on property and casualty insurance, and to take full advantage of our scale, products, and capabilities globally.”

Net written premium (NWP) was up 8.7 percent year on year at $36.79 billion. The company’s combined ratio increased 7.3 points year on year to 105.6 percent in 2017.

Boston-based LMHC, the parent corporation of the Liberty Mutual Insurance group of entities, is a diversified global insurer and fourth largest property and casualty insurer in the US based on 2016 direct written premium.

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