BOSTON, Aug. 5, 2026 /PRNewswire/ -- Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $2.634 billion and $4.686 billion for the three and six months ended June 30, 2026, versus income of $1.845 billion and $2.870 billion for the same period in 2025.
"Liberty Mutual delivered excellent second quarter results and a strong first half of 2026, with net income attributable to LMHC of $4.7 billion and a consolidated combined ratio of 87.3% year to date," said Tim Sweeney, Liberty Mutual Chairman & Chief Executive Officer. "We continued to build momentum across all three of our businesses, with strong underwriting profitability in USRM, selective growth and disciplined execution in GRS, and exceptional investment results from LMI across both traditional and alternative assets. With the strongest balance sheet in our history, we are well positioned to pursue profitable growth, and to serve our policyholders with the financial strength and flexibility required over the long term."
The tables below outline highlights of LMHC's consolidated financial results for the three and six months ended June 30, 2026.
Net Written Premium ("NWP") by Business:
Consolidated NWP by business was as follows:
$ in Millions Three Months Ended, June 30 Six Months Ended, June 30
2026 2025 Change 2026 2025 Change
-------------- --------- --------- --------- --------- -------- --------
USRM $6,627 $6,909 (4.1 %) $12,808 $12,970 (1.2 %)
GRS 4,439 4,290 3.5 9,393 8,995 4.4
Corporate and
Other 22 13 69.2 13 6 116.7
Total
NWP $11,088 $11,212 (1.1 %) $22,214 $21,971 1.1 %
-------------- --------- --------- --------- --------- -------- --------
Consolidated Results of Operations:
Results of Operations - Three Months Ended, June
Consolidated 30 Six Months Ended, June 30
$ in Millions 2026 2025 Change 2026 2025 Change
----------------------- ------- ------- -------- ------- ------- -------
Revenues $13,251 $12,499 6.0 % $26,025 $24,985 4.2 %
----------------------- ------- ------- -------- ------- ------- -------
Underlying PTOI before
limited partnerships
income 2,613 2,667 (2.0) 5,204 5,378 (3.2)
Catastrophes (455) (808) (43.7) (1,024) (2,629) (61.0)
Net incurred
losses
attributable to
prior years:
- Asbestos and
environmental(1) - - - - - -
- All other(2) 251 241 4.1 384 437 (12.1)
----------------------- ------- ------- -------- ------- ------- -------
Pre-tax operating
income before limited
partnership income(3) 2,409 2,100 14.7 4,564 3,186 43.3
Limited partnership
income(4) 850 410 107.3 1,466 777 88.7
----------------------- ------- ------- -------- ------- ------- -------
Pre-tax operating
income 3,259 2,510 29.8 6,030 3,963 52.2
Net realized
gains/(losses) 33 (123) NM (56) (193) (71.0)
Acquisition &
integration costs (27) (28) (3.6) (54) (52) 3.8
Restructuring costs (21) (8) 162.5 (24) (23) 4.3
----------------------- ------- ------- -------- ------- ------- -------
Pre-tax income 3,243 2,351 37.9 5,895 3,695 59.5
Income tax expense 606 501 21.0 1,203 816 47.4
----------------------- ------- ------- -------- ------- ------- -------
Consolidated net income
from continuing
operations 2,637 1,850 42.5 4,692 2,879 63.0
----------------------- ------- ------- -------- ------- ------- -------
Consolidated net income 2,637 1,850 42.5 4,692 2,879 63.0
Less: Net income
attributable to
non-controlling
interest 3 5 (40.0) 6 9 (33.3)
----------------------- ------- ------- -------- ------- ------- -------
Net income attributable
to LMHC 2,634 1,845 42.8 4,686 2,870 63.3
----------------------- ------- ------- -------- ------- ------- -------
Net income attributable
to LMHC excluding
unrealized impact(5) 2,526 1,847 36.8 4,591 2,988 53.7
----------------------- ------- ------- -------- ------- ------- -------
Cash flow provided by
operating activities $1,886 $1,765 6.9 % $2,743 $2,204 24.5 %
----------------------- ------- ------- -------- ------- ------- -------
1. Asbestos and environmental is gross of the related adverse development
reinsurance (the "NICO Reinsurance Transaction", which is described
further in Reinsurance).
2. Net of earned premium and reinstatement premium attributable to prior
years of $28 and $135 for the three and six months ended June 30, 2026,
and $2 and $93 for the same periods in 2025.
3. Limited partnership income includes LP, LLC and other equity method
income within net investment income in the accompanying Consolidated
Statements of Operations and revenue and expenses from direct investments
in natural resources.
4. Includes direct working interest.
5. Excludes unrealized gains on equity securities and the corresponding tax
impact.
Combined Ratio:
Three Months Ended, June 30 Six Months Ended, June 30
Change Change
2026 2025 (Points) 2026 2025 (Points)
----------------- ------ ------ ------------ ------ ------ -------------
Claims and claim
adjustment
expense ratio 52.6 % 53.8 % (1.2) 53.3 % 53.9 % (0.6)
Underwriting
expense ratio 31.9 28.3 3.6 31.0 28.1 2.9
Underlying
combined ratio 84.5 82.1 2.4 84.3 82.0 2.3
Catastrophes 4.2 7.3 (3.1) 4.7 12.0 (7.3)
Net incurred
losses
attributable to
prior years(1) - -
- Asbestos and
environmental 0.0 0.0 - 0.0 0.0 -
- All other(1) (2.3) (2.2) (0.1) (1.7) (2.1) 0.4
----------------- ------ ------ ------------ ------ ------ -------------
Total combined
ratio 86.4 % 87.2 % (0.8) 87.3 % 91.9 % (4.6)
----------------- ------ ------ ------------ ------ ------ -------------
1. Net of earned premium and reinstatement premium attributable to prior
years.
2. The combined ratio, expressed as a percentage, is a measure of
underwriting profitability. This measure should only be used in
conjunction with, and not in lieu of, underwriting income and may not be
comparable to other performance measures used by the Company's
competitors. The combined ratio is computed as the sum of the following
property and casualty ratios: the ratio of claims and claim adjustment
expense less managed care income to earned premium; the ratio of
insurance operating costs plus amortization of deferred policy
acquisition costs less third-party administration income and fee income
(primarily related to the Company's involuntary market servicing carrier
operations) and installment charges to earned premium; and the ratio of
policyholder dividends to earned premium. Provisions for uncollectible
premium and reinsurance are not included in the combined ratio unless
related to an asbestos and environmental commutation and certain other
run off. Restructuring and acquisition and integration costs are not
included in the combined ratio.
Equity:
$ in Millions As of June 30, 2026 As of December 31, 2025 Change
Unassigned equity $45,852 $41,166 11.4 %
Accumulated other
comprehensive loss (1,999) (1,506) 32.7
Non-controlling interest 218 227 (4.0)
Total equity $44,071 $39,887 10.5 %
======================== =================== ======================= ======
Subsequent Events
On July 30, 2026, the Company received a favorable award in arbitration against the Bolivarian Republic of Venezuela related to matters that arose prior to the balance sheet date. The award is for $1.570 billion and there are a number of additional steps required in process to pursue collection. Consistent with the accounting literature around gain contingencies, the Company has not recorded any receivable or related gain for this matter in its consolidated financial statements as of and for the period ended June 30, 2026.
Management has assessed material subsequent events through August 5, 2026, the date the financial statements were available to be issued.
Financial Information
The Company's financial results, management's discussion and analysis of operating results and financial condition, accompanying financial statements and other supplemental financial information for the three and six months ended June 30, 2026 are available on the Company's Investor Relations website at www.libertymutualgroup.com/investors.
Conference Call Information
On August 6, 2026, at 10:00 a.m. Eastern Time, Tim Sweeney, Liberty Mutual Insurance Chairman and CEO, will host a conference call to discuss the Company's second quarter financial results. To participate in the event via telephone and to ask a question, please dial 844-481-2837 and request to join into the Liberty Mutual Insurance call. To listen to the call online via PC and view a presentation on financial performance, please log into https://event.choruscall.com/mediaframe/webcast.html?webcastid=JUb4vxFC. Following the call, a recording of the event will be available on the Investor Relations section of Liberty Mutual's website, www.libertymutualgroup.com/investors.
About Liberty Mutual Insurance
At Liberty Mutual, we believe progress happens when people feel secure. For more than 110 years we have helped people and businesses embrace today and confidently pursue tomorrow by providing protection for the unexpected and delivering it with care.
A Fortune 100 company with more than 40,000 employees in 27 countries and economies, we are the ninth largest global property and casualty insurer and generate more than $50 billion in annual consolidated revenue.
We operate through three strategic business units: US Retail Markets, providing auto, home, renters and other personal and small commercial lines property and casualty insurance to individuals and small businesses countrywide; Global Risk Solutions, delivering a full range of comprehensive commercial and specialty insurance, reinsurance and surety solutions to mid-size and large businesses worldwide; and Liberty Mutual Investments, deploying more than $100 billion of long-term capital globally across its integrated platform to drive economic growth, power innovation and secure Liberty Mutual's promises.
For more information, visit www.libertymutualinsurance.com.
Cautionary Statement Regarding Forward Looking Statements
This report contains forward looking statements that are intended to enhance the reader's ability to assess the future financial and business performance of the Company. Forward looking statements include, but are not limited to, statements that represent the Company's beliefs concerning future operations, strategies, financial results, investment market fluctuations, or other developments, and contain words and phrases such as "may," "expects," "should," "believes," "anticipates," "estimates," "intends" or similar expressions. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the Company's control or are subject to change, actual results could be materially different.
Contact: Investor Relations Media Relations
Robert Pietsch MediaRelations@LibertyMutual.com
857-224-6655
Investor_Relations@LibertyMutual.
com
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SOURCE Liberty Mutual Insurance