Liberty Mutual Holding Company Inc. (LMHC), a global property and casualty insurer, has reported full year 2025 net income growth of 55% to $6.8 billion, compared to $4.4 billion for FY’24, with an improved combined ratio of 88.4% compared to 95.9% for FY’24.
Net income rose by 37.1% to $1.7 billion for the fourth quarter of 2025, compared to $1.2 billion in Q4’24, with an improved combined ratio of 85% compared to 91.5% in Q4’24.
These improvements were supported by favourable prior-year development, lower current-year catastrophe activity, and improved investments.
Total catastrophe losses for the quarter came down by 87.2% to $30 million compared to $234 million in Q4’24, while for FY’25, the same dipped by 28.7% to $2.8 billion, compared to $3.9 billion in FY’24.
LMHC’s net premiums written (NPW) for Q4’25 stayed stable quarter over quarter at $10.6 billion, while for FY’25, the same dipped by 3.1% to $43.6 billion, compared to $44.9 billion in FY’24.
Segment-wise, US Retail Markets (USRM) reported a NPW drop of 4.9% to $6.3 billion for Q4’25, while Global Risk Solutions (GRS) grew by 9.2% to $4.2 billion. Meanwhile, for FY’25, USRM reported a drop of 6.4% to $26.5 billion, while GRS grew by 4.7% to $17.2 billion.
Total revenues for the firm grew by 4.4% for Q4’25 to $12.8 billion, compared to $12.2 billion in Q4’24, and rose slightly by 0.5% for FY’25 to $50.5 billion, compared to $50.2 billion in FY’24.
Tim Sweeney, Liberty Mutual Chairman & Chief Executive Officer, commented, “We made measurable progress on underwriting profitability in the fourth quarter, delivering a consolidated combined ratio of 85.0% and net income attributable to LMHC of $1.7 billion.
“The 6.5-point improvement in our combined ratio for the quarter was supported by favourable prior-year development and lower current-year catastrophe activity, while the underlying combined ratio of 91.4% reflected the impact of investments we’re making to support growth initiatives. Investment results, including $790 million of limited partnerships income in the quarter, continued to provide a meaningful earnings tailwind.”
He continued, “As we reflect on the full year’s results, the consolidated combined ratio of 88.4%, notably ahead of our 95% target in 2025 that was established three years ago, represents the lowest in recent history and an acknowledgement of the effort put forth by our people to build an underwriting culture that our policyholders deserve.
“We know the path ahead will not be easy, but we feel better positioned now than ever before to meet those challenges head-on. We will continue to pursue disciplined, targeted growth where we feel we have a clear advantage and maintain the capital strength to serve our customers for years to come.”
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