(Bloomberg) -- Liberty Mutual Holding Co., the second-largestU.S. property-casualty insurer, posted its worst loss in at least adecade on costs tied to scaling back operations in Venezuela andthe declining value of some energy-related investments.
The loss of $427 million compares with a profit of $605million in the same period last year, Boston-based Liberty Mutual said in a statement on its websiteWednesday. The insurer took a $690 million impairment charge onits Venezuelan operations and plans to classify them asdiscontinued and held for sale, according to the statement.
Losses in Venezuela have been driven by the nation’s soaringinflation and devaluation of the currency, company management saidin an August earnings call. Liberty Mutual Chairman and ChiefExecutive Officer David H. Long said he estimated annual inflationof 140% in June. Venezuela hasn’t published inflation statistics ina year.
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