Boston, MA – Liberty Mutual Holding Company Inc. and its subsidiaries recently reported net income attributable to LMHC of $254 million and $530 million for the three and six months ended June 30, 2015, decreases of $137 million and $126 million from the same periods in 2014. Including $5 million and $9 million of net losses attributable to non-controlling interest, consolidated net income for the three and six months ended June 30, 2015 was $249 million and $521 million, respectively.
“Currency volatility, increased catastrophe losses, and continued market pressures in the energy sector contributed to the 36% decline in consolidated net income to $249 million in the second quarter,” said David H. Long, Chairman and CEO of Liberty Mutual Insurance. “Still, these events are tempered by the continued strength of our underlying operations and growth in each of our four strategic business units, with net written premium up 6% in the second quarter.”
Second Quarter Highlights
Revenues for the three months ended June 30, 2015 were $10.380 billion, an increase of $432 million or 4.3% over the same period in 2014.
Net written premium (“NWP”) for the three months ended June 30, 2015 was $9.727 billion, an increase of $545 million or 5.9% over the same period in 2014.
Net investment income for the three months ended June 30, 2015 was $726 million, a decrease of $79 million or 9.8% from the same period in 2014.
Pre-tax operating income (“PTOI”) for the three months ended June 30, 2015 was $171 million, a decrease of $382 million or 69.1% from the same period in 2014.
Catastrophe losses for the three months ended June 30, 2015 were $800 million, an increase of $125 million or 18.5% over the same period in 2014.
Pre-tax loss associated with the Venezuela devaluation and foreign exchange under hyperinflationary accounting (including other-than-temporary impairments and foreign exchange losses on certain Venezuela investments) was $81 million in 2015 compared to a pre-tax gain of $92 million in the same period in 2014.
Net operating income for the three months ended June 30, 2015 was $115 million, a decrease of $263 million or 69.6% from the same period in 2014.
Net income attributable to LMHC for the three months ended June 30, 2015 was $254 million, a decrease of $137 million or 35.0% from the same period in 2014.
The consolidated combined ratio before catastrophes and net incurred losses attributable to prior years for the three months ended June 30, 2015 was 93.0%, an increase of 1.1 points over the same period in 2014. Including the impact of catastrophes and net incurred losses attributable to prior years (primarily Ireland), the Company’s combined ratio for the three months ended June 30, 2015 increased 2.1 points to 102.4%.
Cash flow from operations for the three months ended June 30, 2015 was $855 million, a decrease of $323 million or 27.4% from the same period in 2014.
Year-to-date Highlights
Revenues for the six months ended June 30, 2015 were $20.060 billion, an increase of $450 million or 2.3% over the same period in 2014.
NWP for the six months ended June 30, 2015 was $19.126 billion, an increase of $1.158 billion or 6.4% over the same period in 2014.
Net investment income for the six months ended June 30, 2015 was $1.363 billion, a decrease of $336 million or 19.8% from the same period in 2014.
PTOI for the six months ended June 30, 2015 was $724 million, a decrease of $501 million or 40.9% from the same period in 2014.
Catastrophe losses for the six months ended June 30, 2015 were $1.296 billion, an increase of $134 million or 11.5% over the same period in 2014.
Pre-tax loss associated with the Venezuela devaluation and foreign exchange under hyperinflationary accounting (including other-than-temporary impairments and foreign exchange losses on certain Venezuela investments) was $244 million in 2015 compared to a pre-tax loss of $183 million in the same period in 2014.
Net operating income for the six months ended June 30, 2015 was $541 million, a decrease of $389 million or 41.8% from the same period in 2014.
Net income attributable to LMHC for the six months ended June 30, 2015 was $530 million, a decrease of $126 million or 19.2% from the same period in 2014.
The consolidated combined ratio before catastrophes and net incurred losses attributable to prior years for the six months ended June 30, 2015 was 92.9%, no change compared to the same period in 2014. Including the impact of catastrophes and favorable net incurred losses attributable to prior years (primarily a one-time benefit as a result of a reduction in the estimated liability for state assessments related to workers compensation), the Company’s combined ratio for the six months ended June 30, 2015 improved 0.1 point to 99.8%.
Cash flow from operations for the six months ended June 30, 2015 was $1.583 billion, an increase of $87 million or 5.8% over the same period in 2014.
Financial Condition as of June 30, 2015
Total assets were $125.096 billion as of June 30, 2015, an increase of $803 million or 0.6% over December 31, 2014.
Total equity was $19.942 billion as of June 30, 2015, a decrease of $349 million or 1.7% from December 31, 2014.
The complete results release is available here: Liberty Mutual Insurance Second Quarter 2015 Results
Source: Liberty Mutual
Disclosure:
Liberty Mutual subsidiary Helmsman is a WorkCompWire Ad Partner.
This is not a paid placement.