#United States #Boston #financial results #Liberty Mutual #Insurance

Liberty Mutual Insurance Reports Strong Q3 2025 Results

Liberty Mutual Holding Company Inc. (LMHC) has announced its impressive financial results for the third quarter of 2025, marked by a significant increase in net income compared to the previous year. The company reported that net income attributable to LMHC reached $2.223 billion for the three months ending September 30, 2025, and $5.093 billion for the first nine months of the year. This represents a remarkable growth compared to net income figures of $892 million and $3.144 billion for the same periods in 2024.

Tim Sweeney, the Chairman and CEO of Liberty Mutual, expressed satisfaction with the quarterly outcome, attributing the successful results to robust underwriting practices and effective investment performance. He highlighted that the consolidated combined ratio improved markedly by 12.0 points year-over-year, settling at 84.7%. The company benefitted from favorable trends in U.S. personal lines and experienced lower catastrophe losses across its insurance segments.

Financial Performance Breakdown

The financial data reveals some crucial metrics that underline Liberty Mutual's strong performance. The total net written premium (NWP) was reported at $11.043 billion for the third quarter, showing a decrease of 8.2% compared to $12.027 billion from the previous year. Delving deeper into sector performance:

• - US Retail Markets (USRM) NWP stood at $7.123 billion, down by 6.5% from $7.619 billion last year.
• - Global Risk Solutions (GRS) reported $3.995 billion in NWP, down by 3.4%, while corporate segments showed negative growth.

Despite the drop in NWP, Liberty Mutual maintained overall revenues almost flat at $12.722 billion compared to $12.727 billion in the same quarter of 2024. The underlying profit before taxes on income also witnessed an increase of 4.5%, confirming a strong operational foothold.

An impressive decline in catastrophe losses, down by 89.5% to only $114 million in Q3 2025, significantly assisted in bolstering profits. This was coupled with effective management of incurred losses from prior years, alluding to a well-strategized risk management approach by the company.

Balance Sheet Strength

One key highlight of the report was Liberty Mutual's strong equity position, which saw unassigned equity grow by 14.8% to $39.467 billion when compared to $34.374 billion as of the end of the previous year. The overall equity surged to $37.746 billion, symbolizing 23.1% growth from the last reported period.

This financial strength empowers Liberty Mutual to continue pursuing strategic growth opportunities and enhances its ability to respond to the unforeseen market challenges ahead. This is crucial since LMHC operates in a dynamic insurance environment characterized by changing regulations and competitive pressures.

Future Outlook

As Liberty Mutual moves into the latter parts of 2025, Sweeney emphasized the focus on disciplined approaches to maintain profitability while pursuing growth. The company plans to leverage its robust underwriting functions and investment strategies to navigate potential market fluctuations successfully.

In light of these promising outcomes, it is apparent that Liberty Mutual is not just maintaining its position but is actively enhancing its capabilities to meet the needs of policyholders while ensuring stakeholder confidence.

For more detailed financial insights and operational highlights, visit Liberty Mutual's official investor relations page at www.libertymutualgroup.com/investors.