Storms Cause 2Q Loss for Liberty Mutual
Liberty Mutual Group was profitable in the first quarter but posted a $170 million 2Q loss due to "unprecedented" storms and tornadoes.
Just as Travelers' second quarter 2011 results were slammed by this year's tornadoes and storms affecting Missouri, North Carolina, and other states, Liberty Mutual Group on July 28 reported a $170 million loss for the quarter, although its revenues rose by 6.1 percent to $8.56 billion.
"It was an unprecedented second quarter in terms of severe storm and tornado activity in the U.S., and our operating results reflect the financial cost. More importantly," said President and CEO David H. Long, "the human cost in lives, anguish, and loss is incalculable, and our thoughts are with all of those affected by these storms.
"Our claims staff continues to work diligently assisting our policyholders with putting their lives back together, and I am very proud of their efforts," Long continued. "Our diversified operating model ensures that we can respond to the needs of all of our policyholders while absorbing the financial impact of such tragic events."
During the first quarter of 2011, the group posted net income of $362 million on $8.381 billion in revenues. It is the third-largest U.S. property and casualty insurer, based on 2010 net written premium.