Liberty Mutual reveals $812m net hurricane Ida loss

Liberty Mutual reveals $812m net hurricane Ida loss

U.S. primary insurance provider and global re/insurer Liberty Mutual reported elevated disaster losses for the third-quarter of 2021, revealing a net $812 million hit from typhoon Ida.Despite a higher-level of catastrophe losses year-on-year for the quarter, Liberty Mutual still handled to report an enhancement in net earnings.
“Despite a raised level of catastrophe losses, net earnings attributable to LMHC for the quarter improved to $721 million, up 81.6% from the previous year,” described David H. Long, Liberty Mutual Chairman and Chief Executive Officer.
Nevertheless, underwriting was up to a technical loss, with a combined ratio of 104.4% for the quarter across the Liberty Mutual service, to which catastrophes added 11.5 points.
Nevertheless a strong lead to its equity investments portfolio helped it report the improved level of earnings.
Total pre-tax net catastrophe losses for Q3 2021 reached $1.2 billion, up from $980 million in the previous year.
Hurricane Ida represented most of this, with net and after reinsurance losses from the storm totaling $812 million for the insurance company.
The level of catastrophe losses reported by Liberty Mutual suggest that it likely made reinsurance recoveries throughout the third-quarter, especially for a loss of the scale of cyclone Ida.
This is particularly likely thinking about Liberty Mutuals residential or commercial property catastrophe reinsurance tower covers it for typhoons in excess of $500 countless maintained loss in the United States, with up to $3.1 billion of protection available.
On that basis it appears cyclone Ida will have gone beyond the per-occurrence retention on the insurance companies reinsurance program, recommending the gross loss from the hurricane will have been someplace above $1.3 billion.
This lines up with disclosures from Allstate, which revealed an almost $1 billion reinsurance recovery in the last quarter.

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