Global property and casualty insurer Liberty Mutual Holding Company Inc. (LMHC) reported full-year 2025 net income increased 55% to $6.8 billion, compared with $4.4 billion in fiscal 2024, and the combined ratio improved to 88.4% compared with 95.9% in fiscal 2024.
Net income increased 37.1% to $1.7 billion in the fourth quarter of 2025, compared with $1.2 billion in the fourth quarter of 2024, and the combined ratio improved to 85%, compared with 91.5% in the fourth quarter of 2024.
These improvements benefit from good developments in the previous year, reduced disaster activity this year and increased investment.
Total catastrophe losses for the quarter fell 87.2% to $30 million, compared to $234 million in Q4 2024, while total catastrophe losses fell 28.7% to $2.8 billion in FY25, compared to $3.9 billion in FY24.
LMHC’s 4Q25 net written premiums (NPW) remained stable at $10.6 billion sequentially, while FY25 net written premiums (NPW) fell 3.1% to $43.6 billion, compared to $44.9 billion in FY24.
By segment, US Retail Markets (USRM) reported a 4.9% decline in net revenue to $6.3 billion in 4Q25, while Global Risk Solutions (GRS) grew 9.2% to $4.2 billion. Meanwhile, in FY25, USRM reported a 6.4% decline to $26.5 billion, while GRS grew 4.7% to $17.2 billion.
The company’s total revenue increased 4.4% in 4Q25 to $12.8 billion, compared to $12.2 billion in 4Q24, and edged up 0.5% in FY25, to $50.5 billion, compared to $50.2 billion in FY24.
Tim Sweeney, Chairman and Chief Executive Officer of Liberty Mutual, commented: “We made significant progress in underwriting profitability in the fourth quarter, with a combined ratio of 85.0% and net income attributable to LMHC of $1.7 billion.
“The combined ratio improved 6.5 percentage points in the quarter, driven by favorable developments in the prior year and reduced catastrophic activity this year, while the underlying combined ratio of 91.4% reflects the impact of investments we have made to support our growth initiatives. Investment results, including $790 million in limited partnership revenue in the quarter, continue to provide meaningful earnings tailwinds.”
He continued: “As we review our full-year results, the combined combined ratio was 88.4%, significantly higher than the 2025 target of 95% we set three years ago, the lowest level in recent history and a recognition of our employees’ efforts to build the underwriting culture our policyholders deserve.
“We know the road ahead will not be easy, but we feel better positioned now than ever to meet these challenges head-on. We will continue to pursue disciplined, targeted growth where we believe we have clear advantages and maintain the capital strength to serve our customers in the years to come.”
Liberty Mutual’s FY25 net profit rose 55% as catastrophe losses fell, ReinsuranceNews first reported.