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Liberty Mutual Reports Impressive Earnings for Q2 2026

Liberty Mutual Holding Company Inc. and its subsidiaries (collectively referred to as "LMHC") have disclosed their financial results for the second quarter of 2026, boasting a remarkable net income attributable to the company of $2.634 billion for the quarter, alongside an impressive $4.686 billion for the first half of the year, compared to $1.845 billion and $2.870 billion in the respective periods of 2025.

At a press briefing, Tim Sweeney, the Chairman and CEO of Liberty Mutual, highlighted the company's robust performance, stating, "Liberty Mutual delivered excellent second quarter results and a strong first half of 2026. We've achieved a consolidated combined ratio of 87.3% year-to-date, demonstrating our successful underwriting profitability across all three business sectors."

The earnings report showcases significant momentum in Liberty Mutual's operations, emphasizing strong performance levels in its US Retail Markets (USRM), disciplined growth within its Global Risk Solutions (GRS), and noteworthy investment results from Liberty Mutual Investments (LMI) in both traditional and alternative assets. The company has noted a solid balance sheet, further allowing it to focus on profitable growth while serving its policyholders effectively.

Financial Highlights

Below is a summary of LMHC's consolidated financial results comparing Q2 2026 to the same period in 2025:

• - Total Revenues: $13.251 billion (up from $12.499 billion, a 6.0% increase)
• - Cash Flow from Operating Activities: $1.886 billion (last year at $1.765 billion, a 6.9% rise)

In terms of net written premium, the following segments were reported:

• - U.S. Retail Markets (USRM): $6.627 billion, down 4.1%
• - Global Risk Solutions (GRS): $4.439 billion, increased by 3.5%
• - Corporate and Other: $22 million, increased significantly by 69.2%

The total net written premium for the quarter reached $11.088 billion, a mild contraction of 1.1%.

Underwriting Performance

The combined ratio, crucial for assessing underwriting profitability, stood at 86.4%, showing a modest improvement of 0.8 points from the prior year. Liberty Mutual has maintained a stable expense ratio, reflecting its efficiency in handling claims and operational costs. The latest combined ratio signifies not just a measure of profitability but also an assurance of the company's resilience in a competitive insurance market environment.

Future Outlook and Strategic Initiatives

The company remains poised for continual growth, deeply emphasizing its strategy centered around efficient underwriting practices and strategic investment initiatives. Liberty Mutual's management has expressed confidence in navigating upcoming challenges and opportunities, with the aim of enhancing financial strength and flexibility in serving customers well into the future.

Furthermore, Liberty Mutual announced a significant legal victory with the recent arbitration award against Venezuela, totaling $1.570 billion. This award reflects past fiscal events and, although not yet realized in the financial statements, underscores the potential for future growth and reinforcement of the company’s capital position.

Sweeney concluded, "With one of the strongest balance sheets in our history, we are well-positioned to pursue profitable opportunities and provide stability to our stakeholders for the long term."

Investor Conference Call

In line with these developments, Liberty Mutual will host a conference call on August 6, 2026, at 10:00 AM Eastern Time, led by Tim Sweeney, to provide deeper insights into the quarterly performance and future directions. Investors and analysts are encouraged to join via telephone or online for a detailed discussion.

Liberty Mutual, a Fortune 100 company operating in 27 countries with over 110 years of experience, continues to pave the way in offering essential services designed to secure the unexpected while upholding a commitment to progress and customer care. For more details, please visit Liberty Mutual's Investor Relations website.