Liberty Mutual Group reported today that second-quarter net income increased 5 percent compared to the same period last year.
The Boston-based carrier posted net income of $339 million for the quarter, compared with $323 million for the same 2006 period.
Chairman Edmund F. Kelly said that "personal lines growth of 9 percent in the quarter is very satisfying in the face of intensifying but rational competition worldwide."
Mr. Kelly told a conference call this morning that commercial lines growth of 7 percent was slower than last year due to "very aggressive competition." Margins, along with terms and conditions, are holding steady, he said.
"We are, however, starting to see some behavior that we have not seen since the late 1990s such as multiyear contracts and guaranteed loss cost policies in workers' comp," Mr. Kelly said.
Second-quarter highlights include:
o Revenues increased 4 percent to $6.3 billion.
o Net written premium increased 2.5 percent to $5.5 billion.
o The combined ratio before catastrophes was 96.5, a deterioration of 1.4 points over the same period in 2006. The combined ratio decreased by .9 point to 100.1 from the year-ago period when including catastrophes.
Mr. Kelly said the acquisition of Ohio Casualty, which will be completed in the third quarter, will make the agency market the largest sector in the company.
"This is something, considering it did not exist ten years ago," he said.
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