Liberty Mutual Reports 2nd-Quarter Results
Liberty Mutual Group today reported net income of $300 million and $660 million for the three and six months ended June 30, 2008, respectively, decreases of $39 million and $29 million from the same periods in 2007.
“Bad weather tempered another quarter of strong core operating results from each of our SBU's,” said Edmund F. Kelly, Chairman, President and CEO, Liberty Mutual. “The fundamentals of our businesses remain sound but require continued underwriting vigilance and pricing discipline due to competitive pressures. Our balance sheet remains strong with limited exposure to the sub-prime crisis. While the economic slowdown in the U.S. remains a concern, inflation is a greater concern, but we are extremely well-positioned globally to compete successfully across a broad range of market conditions.”
Revenues for the three months ended June 30, 2008 were $6.948 billion, an increase of $653 million or 10.4% over the same period in 2007.
Net written premium for the three months ended June 30, 2008 was $6.279 billion, an increase of $802 million or 14.6% over the same period in 2007.
Pre-tax income for the three months ended June 30, 2008 was $412 million, a decrease of $86 million or 17.3% from the same period in 2007. Results in the period reflect a decrease in realized investment gains of $40 million.
Net income for the three months ended June 30, 2008 was $300 million, a decrease of $39 million or 11.5% from the same period in 2007.
Cash flow from operations for the three months ended June 30, 2008 was $1.079 billion, an increase of $292 million or 37.1% over the same period in 2007.
The combined ratio before catastrophes 1 and net incurred losses attributable to prior years 2 for the three months ended June 30, 2008 was 98.0%, an increase of 1.5 points over the same period in 2007. Including the impact of catastrophes and net incurred losses attributable to prior years, the Company’s combined ratio for the three months ended June 30, 2008 increased 1.8 points to 101.9%.
Source: Source: Liberty Mutual | Published on July 24, 2008
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