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Liberty Mutual Insurance Reports Strong Financial Performance for 2024

On March 5, 2025, Liberty Mutual Holding Company Inc. released its financial results for the fourth quarter and full year of 2024, highlighting an impressive rebound in net income. The insurance company reported a net income attributable to LMHC of $1.239 billion for the fourth quarter and $4.383 billion for the entire year, a significant improvement over the same periods in 2023 where it was $654 million for the fourth quarter and only $213 million for the year.

CEO Tim Sweeney acknowledged the severe wildfires in California impacting numerous communities, stating that the company’s claims professionals have been diligently working to support affected policyholders. This dedication is augmented by Liberty Mutual’s robust financial standing that empowers the company to respond effectively to such crises. Sweeney noted, "Our extremely strong financial position enables us to effectively respond to these events and provide the reassurance and resources our customers need to recover."

The financial results also reflected improvements in operational execution, with a combined ratio of 91.5%—the lowest in two decades. This is a significant decrease from previous ratios, positioning Liberty Mutual well on its path towards achieving a 95% combined ratio by 2025. The company's disciplined underwriting and expense management were pivotal in this substantial progress.

Financial Performance Breakdown

In examining the net written premium (NWP) by business units:

• - US Retail Markets experienced a slight dip, decreasing by 5.2% to $6.7 billion for the fourth quarter while the annual NWP declined by 5.3% to $28.3 billion.
• - In Global Risk Solutions, the fourth quarter showed a more pronounced decline of 10.5% with NWP at $3.8 billion, but a less severe annual drop of 2.3% to $16.4 billion.
• - Corporate and other segments fluctuated, closing the year with $268 million in NWP compared to a loss of $177 million in 2023.

Overall, the total NWP amounted to $10.6 billion, marking a 6.9% decrease for Q4 and 3.3% for the yearly report. Adjusted for foreign exchange, the growth would highlight a more solid reduction in these figures.

Revenue and Income Insights

The consolidated revenues for 2024 reached $50.2 billion, a slight increase from $49.4 billion in 2023. Notably, the underlying pre-tax operating income soared to $9.4 billion, showing an astounding growth of 92% compared to the previous year.

Due to catastrophes incurred, the estimated losses remained controlled, allowing Liberty Mutual to produce a solid income despite the challenges posed by devastation in California and elsewhere. Moreover, the pre-tax income jumped to $4.7 billion from just $204 million in 2023, revealing an unparalleled recovery trajectory.

Future Implications and Growth Strategies

Observing the broader landscape, Liberty Mutual has proactively engaged in strategic decisions, such as the recent agreement to sell its operations in Thailand and Vietnam to Chubb Limited, set to finalize this year and next.

Sweeney noted, “This progress sets a solid foundation for future success, and we are committed to maintaining this discipline as we now seek to grow in select segments.” The company continues to reflect confidence in its strategies while also committing to bolster areas of expected profitability, thereby ensuring resilience against future financial strains.

In conclusion, Liberty Mutual's 2024 financial results symbolize a remarkable resilience and adaptability in the face of both natural disasters and economic challenges. By prioritizing disciplined growth and operational effectiveness, the company is positioned to thrive in the competitive landscape of insurance.