Liberty Mutual Insurance (formerly Liberty Mutual Holding Company and its subsidiaries, or LMHC collectively) continues to recover from its losses in 2023, reporting another quarter of significant turnaround.

In the first quarter of 2024, the company saw its net income attributable to LMHC rise to $1.535 billion after a loss of $74 million in the same three-month period last year.

This time around, Liberty Mutual’s new earnings report shows a similar story, with net income attributable to LMHC coming in at $717 million in the second quarter — a huge jump from the $585 million net loss attributable to LMHC in the same period in 2023.

In the six months ended June 30, the insurance group’s net income attributable to LMHC was $2.252 billion, up from a $660 million loss a year earlier.

“In the second quarter, we reported net income attributable to LMHC of $717 million, reflecting continued improvement in our core combined ratio and strong investment results,” said Tim Sweeney, Liberty Mutual CEO (pictured).

“Our core expense ratio improved 9.5 points year-over-year to 84.0%. Of that, 7.1 points of improvement came from our targeted underwriting strategies that improved both personal and commercial lines. Additionally, our ongoing expense management program contributed to a 2.4 point improvement in the expense ratio, bringing it down to 26.4% for the second quarter and half year.

“Catastrophe losses in the quarter remained elevated, although improved from a year ago, primarily due to severe convective storm activity in the U.S. Midwest. Including catastrophes and prior-year developments, the combined total ratio was 99.6% for the quarter, a 9.8-point improvement from a year ago.

“Additionally, investment results for the quarter were strong, benefiting from higher reinvestment rates and favorable private equity valuations, which contributed to $1.3 billion in net investment income.”

What do you think of this story? Share your thoughts in the comments below.