Liberty Mutual Holdings Co. Inc. reported on Tuesday a net profit of $ 162 million for the fourth quarter of 2020, compared to a net loss of $ 301 million the year before, due to favorable core insurance results across the insurer's Global Retail Markets and Global Risk Resolution Companies and strong return on investment.
In a results call on Wednesday describing the results, Liberty Mutual's executives said the company had received more than 20,000 claims related to last week's adverse weather events, mostly from policyholders in Texas and Oklahoma.
"It's a little too early to determine what the total loss may be," said David Long, Liberty Mutual's chairman and CEO. "It will be ugly, but not ugly enough to get reinsurance to kick in."
The Boston-based insurance company's net premium for the quarter was $ 1
The result for the fourth quarter of 2020 included $ 596 million in restructuring costs related to the implementation of an early retirement program that is expected to provide $ 260 annual interest savings in 2022 and beyond, said Tim Sweeney, CEO of GRM, during the conversation.
The insurer reported full year income in 2020 of $ 758 million, a decrease of 26.9% from 2019. Net written premiums increased 2% to $ 40.6 billion The total share for 2020 was 101.8%, a decrease of 0.1 points from 2019.
In the Global Retail Markets business, the net contribution for the fourth quarter decreased 0.1% from the same period in 2019 to $ 6.67 billion  The decline was driven by results in commercial car, employment compensation and commercial diversity in U.S. business areas and the risk of appetite change in the western region, Sweeney said. He also noted that in GRM's US business area, the car frequency remained low during the quarter, partially offset by increased difficulty trends.
Written net premium for GRM for 2020 decreased by 1.3% from the previous year to USD 27.4 billion.
In the insurer's Global Risk Solutions business, net premium for the fourth quarter of 2020 amounted to $ 3.43 billion, an increase of 11.5% compared to the same quarter of 2019, partly driven by the specialty segment which increased the rate of renewal by 24% during the quarter – "Far above the loss trends," says Dennis Langwell, CEO of GRS.
The full-year net premium for GRS was $ 13.35 billion, an increase of 10.6% over 2019.
The insurer reported $ 115 million in COVID-19 related losses for the fourth quarter, to which Langwell attributed several factors. including reserves for workers' benefits as a result of new reporting, potential increases in losses from deferred medical treatment and event stoppages.
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