Boston, MA – Liberty Mutual Holding Company Inc. and its subsidiaries recently reported net loss attributable to LMHC of $665 million and $188 million for the three and nine months ended September 30, 2017, versus net income attributable to LMHC of $455 million and $863 million for the same periods in 2016, respectively. Including $1 million and $2 million of net income attributable to non-controlling interest, consolidated net loss for the three and nine months ended September 30, 2017 was $664 million and $186 million, respectively.
“Net loss in the quarter of $665 million, was driven by the after tax impact of hurricanes Harvey, Irma, and Maria, which totaled $1.2 billion. The fundamentals of the business though remain healthy, as evidenced by a 1.7 point reduction in the core combined ratio down to 92.5%,” said David H. Long, President and CEO of Liberty Mutual Insurance.
“While the catastrophe losses are significant, they serve as a very real reminder of why we are here. It is in times of crisis that our customers expect us to respond immediately with care, compassion and restitution. Our employees continue to work tirelessly in the impacted areas to help our customers through the daunting challenge of getting back on their feet as quickly as possible.”
Third Quarter Highlights
- Net written premium (“NWP”) for the three months ended September 30, 2017 was $10.379 billion, an increase of $1.070 billion or 11.5% over the same period in 2016.
- Pre-tax operating loss before partnerships, limited liability companies (“LLC”) and other equity method income for the three months ended September 30, 2017 was $1.233 billion, versus pre-tax operating income (“PTOI”) before partnerships, LLC and other equity method income of $417 million for the same period in 2016.
- Net operating loss before partnerships, LLC and other equity method income for the three months ended September 30, 2017 was $886 million versus net operating income before partnerships, LLC and other equity method income of $352 million for the same period in 2016.
- Partnerships, LLC and other equity method income, net of tax for the three months ended September 30, 2017 was $137 million, an increase of $95 million over the same period in 2016.
- Net realized gains, net of tax for the three months ended September 30, 2017 were $128 million, an increase of $71 million or 124.6% over the same period in 2016.
- Ironshore Inc. (“Ironshore”) acquisition and integration costs, net of tax for the three months ended September 30, 2017 were $28 million versus zero for the same period in 2016.
- Restructuring costs, net of tax for the three months ended September 30, 2017 were $15 million versus zero for the same period in 2016.
- Loss on extinguishment of debt, net of tax for the three months ended September 30, 2017 was zero versus $1 million for the same period in 2016.
- Consolidated net loss for the three months ended September 30, 2017 was $664 million versus consolidated net income of $450 million for the same period in 2016.
- Net income (loss) attributable to non-controlling interest for the three months ended September 30, 2017 was $1 million versus ($5) million for the same period in 2016.
- Net loss attributable to LMHC for the three months ended September 30, 2017 was $665 million versus net income attributable to LMHC of $455 million for the same period in 2016.
- Cash flow provided by operations for the three months ended September 30, 2017 was $945 million, a decrease of $325 million or 25.6% from the same period in 2016.
- The consolidated combined ratio before catastrophes1, net incurred losses attributable to prior years2 and current accident year re-estimation3 for the three months ended September 30, 2017 was 92.5%, a decrease of 1.7 points from the same period in 2016. Including the impact of catastrophes, net incurred losses attributable to prior years and current accident year re-estimation, the Company’s combined ratio4 for the three months ended September 30, 2017 increased 18.4 points to 116.2%.
The complete results release is available here: Liberty Mutual Insurance Third Quarter 2017 Results (PDF)
Source: Liberty Mutual