Liberty Mutual Holding Company (LMHC) has reported net income of $2.22 billion, and a consolidated combined ratio of 84.7% for the third quarter of 2025, driven by strong underwriting performance and a drop in catastrophe losses
Net income for the nine months ended September 30, 2025, was $5.093 billion versus income of $3.144 billion for the same period in 2024.
The quarter’s combined ratio improved to 84.7%, from 96.7% in Q3 2024. Catastrophe losses went down to $114 million in Q3 2025, compared to cat losses of $1.09 billion in the same period last year.
Underwriting profitability also improved due to fewer severe weather events and the continued impact of underwriting discipline and rate adjustments.
Tim Sweeney, Chairman and Chief Executive Officer, commented: “Our combined ratio improved 12.0 points year-over-year, underpinned by favourable frequency trends in U.S. personal lines and lower catastrophe losses across both insurance businesses.
“Investment results remained strong, benefiting from higher reinvestment rates and robust performance in private assets, particularly private equity. As our underwriting actions take hold, we will remain disciplined in pursuing profitable growth.”
While profitability surged, the company’s premium volume saw a decrease. Net written premium for the quarter was $11.04 billion, an 8.2% decrease compared to the Q3 2024’s $12.03 billion.
US Retail Markets (USRM) reported a 6.5% drop in premiums, while Global Risk Solutions (GRS) slipped 3.4% compared to the prior year.
Total revenue for the quarter remained stable at $12.72 billion, with pre-tax operating income more than doubling to $3.1 billion. The insurer’s cash flow from operations rose 27.8% to $3.3 billion, underlining continued balance sheet strength.
Despite the lower premium volume, the improvement in the combined ratio demonstrates LMHC success in prioritising underwriting discipline and profitable risk selection, the company noted.
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