Liberty Mutual Holding Company reported a net income attributable to the company of $1.03 billion for the first quarter of 2025, representing a decrease from the $1.54 billion recorded in the same period last year. The decline is primarily attributed to the absence of income from discontinued operations reported in the prior-year quarter.
Financial Highlights
Despite the decrease in net income, the company’s total revenue for Q1 2025 remained largely unchanged at $12.49 billion compared to the previous year. Pre-tax operating income saw a 15% year-over-year increase to $1.45 billion, driven by improved underwriting performance and higher investment income.
Underwriting and Investment Performance
According to Tim Sweeney, Liberty Mutual’s chairman and CEO, “Our first-quarter results reflect progress in underwriting and investment performance.” The company achieved a 6.5-point improvement in its underlying combined ratio, reaching 81.9% for the quarter. Although catastrophe losses were higher, including those related to wildfires in California, the total combined ratio stood at 96.6%.
Sweeney also highlighted that the company’s investment income reached $1.3 billion, supported by higher reinvestment yields and favorable private equity valuations. Net written premium (NWP) across the company declined 1.8% to $10.76 billion in Q1 2025, with the US Retail Markets segment reporting $6.06 billion in NWP, down 7.4% from the previous year. In contrast, Global Risk Solutions recorded $4.71 billion in NWP, up 7.5%.
Key Financial Metrics
- Catastrophe losses totaled $1.82 billion, more than double the $824 million recorded in Q1 2024.
- Limited partnership income rose to $367 million from $159 million in Q1 2024.
- Favorable development on prior-year reserves contributed $196 million to the quarterly result.
- Net realized losses from investments narrowed to $70 million compared to $92 million a year ago.
Outlook
“Overall, we are very pleased with our performance this quarter as we continue to pursue profitable growth and progress toward our 95% combined ratio goal at the end of 2025,” Sweeney stated. The company’s results demonstrate progress in underwriting and investment performance, despite challenges such as higher catastrophe losses.
