Net Loss Of $343 Million For Liberty Mutual In Q2
Net Loss Of $343 Million For Liberty Mutual In Q2
According to Liberty Mutual Holding Co., it had a net loss of roughly $343 million in the second quarter compared to a net income of about $770 million in the same time last year.
CEO David H. Long said that loss-cost inflation and the erratic nature of the investment market had an impact on the outcomes.
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“Pre-tax net realized investment losses of $671 million along with inflation-driven underwriting margin erosion in some lines of business were the key drivers of Q2 results,” he said in a statement. “While rising interest rates are causing some short-term pressure on investment results, we expect higher net investment income to be a significant tailwind in future periods.”
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Net Loss Of $343 Million For Liberty Mutual In Q2
According to Liberty Mutual, the total combined ratio in Q2 was 105 as opposed to 98.1 in Q2 2021. Long stated that although the insurer noticed a rise in the severity of personal auto claims, personal lines performance should start to improve in the second half of the year due to “accelerated rates and targeted underwriting measures.”
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Liberty Mutual recorded net profits of roughly $156 million for the first half of 2022 as opposed to over $1.6 billion in 2021. As of June 30, Liberty Mutual has recorded approximately $1.77 billion in catastrophe losses; this represents a $1.1 billion increase over the second quarter of last year’s $660 million.
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