LIBERTY MUTUAL’S INCOME RISES 42% IN FIRST QUARTER

US property/casualty group Liberty Mutual saw its first-quarter net earnings rise 42% to $393m, largely reflecting the $118m loss recorded for its discontinued operations a year earlier. Pre-tax operating income rose 29% to $637m, as the loss in the corporate segment dropped to $130m from $270m and helped offset a $54m increase in catastrophe losses. The Boston-based group’s combined ratio improved by 0.8 points to 96.3%, as earned premiums increased 1.5% to $8.46bn and claims costs fell 1.1% to $5.73bn. Improved underwriting results in the international consumer markets segment offset slight declines in the US consumer markets, commercial insurance and global specialty segments. Liberty Mutual’s investment income rose $76m to $687m but that increase was offset by a swing to $39m in realised losses from gains of $37m.