Posted on 06 Aug 2010
Property and casualty insurer Liberty Mutual Group on Thursday said its net income fell by 18 percent in the second quarter as losses from catastrophes surged.
The privately held Boston-based insurer said it earned $220 million in the three months ended June 30. That compared with $268 million in the prior year's quarter.
Quarterly revenue rose to $8.07 billion from $7.83 billion a year ago as net written premiums climbed 6 percent to $7.28 billion, However, the company's losses from catastrophes such as severe weather grew to $497 million, nearly double the $253 million it lost in the quieter 2009 period.
As a result the combined ratio, which measures and insurance company's loss and expenses, worsened 4.4 points to 104.7 percent.
A ratio above 100 means that for every premium dollar taken in, more than a dollar went to cover claims and expenses. A figure below 100 means the company made a profit on its insurance operations.