NU Online News Service, July 29, 11:53 a.m.EDT

The first quarterly earnings conference call with new LibertyMutual Group President and CEO David H. Long involved the reporting of a net loss of $170million for the 2011 second quarter, driven by nearly $1.3 billionin catastrophe losses.

Long says the Boston-based global insurer’s business modelallows it to absorb the financial impact of the significantnatural-catastrophe events during the quarter.

Income results are compared to a profit of $220 million duringthe second quarter last year. The combined ratio was 112.4, a7.7-point increase over last year during the same period.

Despite the weather-related losses, Long says he “feels good”about the collective business of Liberty Mutual. Policies-in-forceare up 2.7 percent in auto and 3.3 percent in homeowners.Personal-lines net premiums written are up 8 percent over lastyear, he adds.

Long says Liberty Mutual is “getting rate when needed,”especially in the Midwest, “where the industry has been, andremains, significantly underpriced.”

Independent agents via Liberty Mutual’s Safeco brand sawpolicies-in-force grow 3.1 percent.

Liberty Mutual is seeing growth in personal lines because itallows consumers to access the company “in whatever manner theychose,” whether it be through agents, direct, Internet or affinitygroups.

On a consolidated basis, net premiums written increased 6percent, or $440 million, to $7.7 billion compared to the secondquarter last year.

The company is “yet to see traction” in the commercialmultiperil market as it continues to “face headwinds” in pricingnew business. Premiums are down 3 percent but there are signsexposures are stabilizing, Long adds.

In middle-market accounts, rates are going up, especially inworkers’ compensation where middle single-digit increases are seen.Long says the company continues to walk away from inadequatelypriced business.

When asked if he’d deviate in business strategy from hispredecessor, Edmund “Ted” Kelly, Long says he and Kelly shared a similarphilosophy of diversified global growth, so there will be “no majordeviations.”

Additionally, Liberty Mutual has no plans “as of today” togo public, as it once did, says Long.