BOSTON–(BUSINESS WIRE)–Liberty Mutual Group (“LMG” or the “Company”) today reported net income of $576 million and $1.678 billion for the three months and twelve months ended December 31, 2010, increases of $103 million and $655 million over the same periods in 2009.
“We are pleased with the financial results overall, which reflect the strength of our operating model. Our industry leading domestic personal lines businesses along with our unparalleled international operations more than compensated for the industry-wide problems in commercial lines,” said Edmund F. Kelly, Chairman and CEO of Liberty Mutual Group Inc. “I am confident of our ongoing success in 2011 and beyond as we continue to strengthen our position as one of the world’s elite property and casualty insurers.”
Fourth Quarter Highlights
- Revenues for the three months ended December 31, 2010 were $8.550 billion, an increase of $608 million or 7.7% over the same period in 2009.
- Net written premium for the three months ended December 31, 2010 was $6.979 billion, a decrease of $140 million or 2.0% from the same period in 2009.
- Pre-tax operating income before private equity income for the three months ended December 31, 2010 was $515 million, a decrease of $13 million or 2.5% from the same period in 2009.
- Pre-tax operating income for the three months ended December 31, 2010 was $679 million, an increase of $164 million or 31.8% over the same period in 2009.
- Net income for the three months ended December 31, 2010 was $576 million, an increase of $103 million or 21.8% over the same period in 2009.
- Cash flow from operations for the three months ended December 31, 2010 was $1.007 billion, an increase of $88 million or 9.6% over the same period in 2009.
- The combined ratio before catastrophes, net incurred losses attributable to prior yearsb and current accident year re-estimation for the three months ended December 31, 2010 was 98.9%, a decrease of 0.9 points from the same period in 2009. Including the impact of catastrophes, net incurred losses attributable to prior years and current accident year re-estimation, the Company’s combined ratio for the three months ended December 31, 2010 increased 0.5 points to 99.4%.
Year End Highlights
- Revenues for the twelve months ended December 31, 2010 were $33.193 billion, an increase of $2.099 billion or 6.8% over the same period in 2009.
- Net written premium for the twelve months ended December 31, 2010 was $29.191 billion, an increase of $933 million or 3.3% over the same period in 2009.
- Pre-tax operating income before private equity income for the twelve months ended December 31, 2010 was $1.515 billion, a decrease of $80 million or 5.0% from the same period in 2009.
- Pre-tax operating income for the twelve months ended December 31, 2010 was $1.913 billion, an increase of $729 million or 61.6% over the same period in 2009.
- Net income for the twelve months ended December 31, 2010 was $1.678 billion, an increase of $655 million or 64.0% over the same period in 2009.
- Cash flow from operations for the twelve months ended December 31, 2010 was $2.761 billion, an increase of $274 million or 11.0% over the same period in 2009.
- The combined ratio before catastrophes and net incurred losses attributable to prior years for the twelve months ended December 31, 2010 was 98.4%, a decrease of 0.7 points from the same period in 2009. Including the impact of catastrophes and net incurred losses attributable to prior years, the Company’s combined ratio for the twelve months ended December 31, 2010 increased 1.4 points to 101.3%.
Financial Condition as of December 31, 2010
- Total assets were $112.350 billion as of December 31, 2010, an increase of $2.875 billion over December 31, 2009.
- Policyholders’ equity was $16.978 billion as of December 31, 2010, an increase of $2.464 billion over December 31, 2009.
The complete Earnings release is available here (PDF).
Source: BusinessWire