Liberty Mutual Reports Third-Quarter Gains
For the three months ending September 30, 2007, Liberty Mutual Group ("LMG") reported net operating income of $390 million, an increase of $3 million over the same period in 2006. Results in the quarter include a 9.6% increase in revenues and a $67 million after-tax ($95 million pre-tax) increase in asbestos reserves related to the completion of the Company's comprehensive ground-up study. Net operating income for the nine months ended September 30, 2007, was $991 million, an increase of $37 million over the same period in 2006.
"We had a solid quarter despite a more competitive market place for property and casualty insurance. Our core businesses produced good operating results and cash flow, and we had significant growth in investment income," said Edmund F. Kelly, Liberty Mutual Group Chairman, President and CEO. "Our premium growth was very satisfying and reflects the benefits of our diversification strategy.
Traditional domestic commercial lines' premium growth was lower than recent quarters, reflecting our underwriting discipline in the face of competitive market conditions. This was more than offset by our International business unit, which provided more than half of our consolidated premium growth. Both domestic and international personal lines produced strong unit growth in the quarter, bringing total worldwide insured autos to 8.2 million.
Additionally, we achieved several strategic milestones including the completion of the acquisition of Ohio Casualty Corporation, the start up of our personal auto insurance operation in Poland and the recent signing of an agreement to acquire Brazilian insurer Indiana Seguros, S.A. Each of these will further strengthen and diversify our businesses and provide opportunities for future profitable growth."
Source: Sourc: Liberty Mutual Press Release | Published on November 2, 2007
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