Liberty Mutual Sees Highest First-Quarter Profits in Three Years

Liberty Mutual earnings graphLiberty Mutual released its first-quarter 2012 profits on Thursday, showing that the insurer posted a marked improvement from both last year and the year before.

The company had $8.88 billion in revenues for the first quarter of 2012, with profits coming in at $459 million.

That means first-quarter profits for the insurance company are up about 27 percent from 2011 and up about 46 percent from 2010.

The company’s financial results for the first quarter of this year and the fourth quarter of 2011 show the insurer on the road to recovery after two disasterous quarters that came in the middle of last year.

For the second and third quarters of 2011, the insurer posted a combined net loss of $281 million.

Those sagging profits were the result of huge catastrophic losses that were suffered by Liberty Mutual and most of the country’s other major insurers when a handful of unexpected, high-loss weather events struck residents across the country.

In the second quarter of 2011, the company saw $1.26 billion in catastrophic losses, which was followed by nearly $600 million in catastrophic losses the next month.

The insurance industry typically defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of policyholders and coverage providers, according to the Insurance Information Institute.

In the first quarter of 2012, catastrophe losses came in at $321 million, which is one of the main reasons its profits were such an improvement from the past two years. The first quarter of last year saw $586 million in catastrophic losses, and in 2010 they came in at $411 million.

Liberty Mutual is among the 10 largest providers of cheap car insurance in the country, collecting about $7.68 billion worth of premiums, according to the latest data from the National Association of Insurance Commissioners (NAIC). The NAIC data show the Boston-based insurer has a 4.54 share of the nation’s market, making it the seventh-largest writer of private passenger coverage premiums in the country.

To read about the experiences of current and former Liberty Mutual policyholders, readers can find user-submitted Liberty Mutual auto insurance reviews online.

Consumers who want to check how many complaints have been lodged against this company may be able to check the consumer-complaint reports made available by their state insurance department.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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