NU Online News Service, May 12, 12:51 p.m.EDT

Liberty Mutual reported first quarter net income rose by $293million, primarily on the strength of investment gains.

The Boston-based insurer reported yesterday that net income of$315 million in the first quarter versus $22 million for the sameperiod last year. The company reported investment income of $84million this year compared to a loss of $373 million for the sameperiod last year.

Revenues grew close to 11 percent, or $784 million, to $8.19billion in the quarter.

During a conference call with financial analysts, Edmund F.Kelly, the company's group chairman, president and chief executiveofficer said, "Overall, results were strong, especially given thecompetitive environment and the numerous winter and springcatastrophes."

He said besides the investment performance, the company alsobenefited from strong underwriting in its auto, homeowners andother businesses.

The company's combined ratio for the first quarter, includingthe impact of catastrophes and prior year losses, rose 2.7 pointsto 102.2.

In response to a question regarding Liberty Mutual's exposure tothe sinking and subsequent environmental damage caused by thesinking of the Deepwater Horizon in the Gulf of Mexico, Mr. Kellysaid the company has no direct exposure to the disaster. However,Liberty Mutual may have some reinsurance exposure, which he called"relatively insignificant."