Liberty Mutual Group Thursday reported a 35.4 percent decrease in second-quarter net income as lower capital gains and increased taxes took their toll.
The Boston-based carrier reported net income of $323 million, a decrease of $177 million from the same period in 2005.
The decrease reflects lower realized capital gains and higher federal and foreign income taxes due to the reduction of the domestic deferred tax asset valuation allowance to zero in 2005, the company said.
"We are very pleased with our results," said Chief Executive Officer Edmund F. Kelly. "While market conditions are competitive, we are still able to take advantage of the attractive margins we see in most lines of business."
Highlights for the second quarter:
o Revenues were $6 billion, an increase of 14.4 percent over the same period in 2005.
o Net written premium increased 21 percent year over year to $5.3 billion.
o The combined ratio before catastrophes was 94.5, a decrease of 0.6 points from the same period in 2005. Including the impact of catastrophes, the figure increased 1.9 points over 2005 to 101.0 in 2006.
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