Liberty Mutual Q1 2025 Net Income Falls 33% Amid Rising Catastrophe Losses

Liberty Mutual Holding Company reported a consolidated net income of approximately $1 billion for the first quarter of 2025, marking a 33% decline from the previous year. The increase in catastrophe losses, primarily due to California wildfires, surged to $1.8 billion, significantly impacting the quarter's combined ratio which rose to 96.6 compared to 95.8 in Q1 2024.

Underwriting discipline led to an improved underlying combined ratio of 81.9, down 6.5 points, supporting the insurer's target of a 95% combined ratio by the end of 2025. Net written premiums decreased in key U.S. Retail Markets by 7.4%, with private passenger automobile premiums falling nearly 16% attributed to increased policyholder shopping, though homeowners insurance premiums remained steady. Conversely, the Global Risk Solutions segment experienced a 7.5% growth in net written premiums to about $4.7 billion. Liberty Mutual is consolidating its personal lines products under its own brand by discontinuing the Safeco brand.