NU Online News Service, May 12, 12:51 p.m. EDT
Liberty Mutual reported first quarter net income rose by $293 million, primarily on the strength of investment gains.
The Boston-based insurer reported yesterday that net income of $315 million in the first quarter versus $22 million for the same period last year. The company reported investment income of $84 million this year compared to a loss of $373 million for the same period last year.
Revenues grew close to 11 percent, or $784 million, to $8.19 billion in the quarter.
During a conference call with financial analysts, Edmund F. Kelly, the company's group chairman, president and chief executive officer said, "Overall, results were strong, especially given the competitive environment and the numerous winter and spring catastrophes."
He said besides the investment performance, the company also benefited from strong underwriting in its auto, homeowners and other businesses.
The company's combined ratio for the first quarter, including the impact of catastrophes and prior year losses, rose 2.7 points to 102.2.
In response to a question regarding Liberty Mutual's exposure to the sinking and subsequent environmental damage caused by the sinking of the Deepwater Horizon in the Gulf of Mexico, Mr. Kelly said the company has no direct exposure to the disaster. However, Liberty Mutual may have some reinsurance exposure, which he called "relatively insignificant."
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