Liberty Mutual Insurance Reports Fourth Quarter and Full Year 2025 Results

BOSTON, March 4, 2026 /PRNewswire/ — Liberty Mutual Holding Firm Inc. and its subsidiaries (collectively “LMHC” or the “Firm”) reported web earnings attributable to LMHC of $1.699 billion and $6.792 billion for the three and twelve months ended December 31, 2025, versus earnings of $1.239 billion and $4.383 billion for a similar durations in 2024.

“We made measurable progress on underwriting profitability in the fourth quarter, delivering a consolidated mixed ratio of 85.0% and web earnings attributable to LMHC of $1.7 billion,” mentioned Tim Sweeney, Liberty Mutual Chairman & Chief Government Officer. “The 6.5-point enchancment in our mixed ratio for the quarter was supported by favorable prior-year improvement and decrease current-year disaster exercise, whereas the underlying mixed ratio of 91.4% mirrored the affect of investments we’re making to help development initiatives. Funding outcomes, together with $790 million of restricted partnerships earnings within the quarter, continued to offer a significant earnings tailwind.

As we mirror on the total yr’s outcomes, the consolidated mixed ratio of 88.4%, notably forward of our 95% goal in 2025 that was established three years in the past, represents the bottom in current historical past and an acknowledgement of the trouble put forth by our folks to construct an underwriting tradition that our policyholders deserve. We all know the trail forward is not going to be simple, however we really feel higher positioned now than ever earlier than to fulfill these challenges head on. We’ll proceed to pursue disciplined, focused development the place we really feel we have now a transparent benefit and keep the capital energy to serve our prospects for years to return.”

The tables beneath define highlights of LMHC’s consolidated monetary outcomes for the three and twelve months ended December 31, 2025.

Web Written Premium (“NWP”) by Enterprise:

Consolidated NWP by enterprise was as follows:

	Three Months Ended December 31,			Twelve Months Ended December 31,
$ in Tens of millions	2025	2024	Change	2025	2024	Change
USRM	$6,375	$6,700	(4.9 %)	$26,468	$28,279	(6.4 %)
GRS	4,196	3,844	9.2	17,186	16,416	4.7
Company and Different	(19)	7	NM	(88)	268	NM
Whole NWP	$10,552	$10,551	0.0 %	$43,566	$44,963	(3.1 %)
International change impact on development			(0.8)			(0.2)
NWP development excluding international change¹			0.8 %			(2.9 %)


		1			Decided by assuming fixed international change charges between durations.
					NM = Not Significant

Consolidated Results of Operations:

	Three Months Ended December 31,			Twelve Months Ended December 31,
$ in Tens of millions	2025	2024	Change	2025	2024	Change
Revenues	$12,758	$12,218	4.4 %	$50,465	$50,218	0.5 %
Underlying PTOI earlier than restricted partnerships earnings	1,118	2,949	(62.1)	8,695	9,406	(7.6)
Catastrophes	(30)	(234)	(87.2)	(2,773)	(3,890)	(28.7)
Web incurred losses attributable to prior years:
– Asbestos and environmental¹	(465)	(175)	165.7	(465)	(175)	165.7
– All different²	1,198	(760)	NM	2,051	(683)	NM
– Present accident yr re-estimation³	–	(20)	(100.0)	–	–	–
Pre-tax working earnings earlier than restricted partnerships earnings	1,821	1,760	3.5	7,508	4,658	61.2
Restricted partnerships earnings⁴	790	380	107.9	2,161	1,266	70.7
Pre-tax working earnings	2,611	2,140	22.0	9,669	5,924	63.2
Web realized losses	(395)	(623)	(36.6)	(856)	(1,041)	(17.8)
Acquisition & integration prices	(99)	(25)	NM	(178)	(87)	104.6
Restructuring prices	(35)	(4)	NM	(75)	(59)	27.1
Pre-tax earnings	2,081	1,488	39.9	8,559	4,737	80.7
Earnings tax expense	379	280	35.4	1,750	1,060	65.1
Consolidated web earnings from persevering with operations	1,702	1,208	40.9	6,809	3,677	85.2
Discontinued operations, web of tax	–	34	(100.0)	–	725	(100.0)
Consolidated web earnings	1,702	1,242	37.0	6,809	4,402	54.7
Much less: Web earnings attributable to non- controlling curiosity	3	3	–	17	19	(10.5)
Web earnings attributable to LMHC	1,699	1,239	37.1	6,792	4,383	55.0
Web earnings attributable to LMHC excluding unrealized affect⁵	1,682	1,126	49.4	6,868	4,249	61.6
Money move offered by persevering with operations	$2,366	$1,567	51.0 %	$7,876	$6,469	22.7 %


		1			Asbestos and environmental is gross of the associated antagonistic improvement reinsurance (the “NICO Reinsurance Transaction”, which is described additional in Reinsurance).
		2			Web of earned premium and reinstatement premium attributable to prior years of ($62) million and $92 million for the three and twelve months ended December 31, 2025, and $46 million and $123 million for a similar durations in 2024.
		3			Re-estimation of the present accident yr loss reserves for the 9 months ended September 30, 2024.
		4			Restricted partnerships earnings consists of LP, LLC and different fairness methodology earnings inside web funding earnings within the accompanying Consolidated Statements of Operations and income and bills from direct investments in pure sources.
		5			Excludes unrealized good points on fairness securities and the corresponding tax affect.
					NM = Not Significant

Mixed Ratio:

	Three Months Ended December 31,			Twelve Months Ended December 31,
CONSOLIDATED	2025	2024	Change (Factors)	2025	2024	Change (Factors)
Mixed ratio
Claims and declare adjustment expense ratio	57.0 %	52.5 %	4.5	55.2 %	57.9 %	(2.7)
Underwriting expense ratio	34.4	28.7	5.7	30.5	27.6	2.9
Underlying mixed ratio	91.4	81.2	10.2	85.7	85.5	0.2
Catastrophes	0.2	2.1	(1.9)	6.3	8.6	(2.3)
Web incurred losses attributable to prior years:
– Asbestos and environmental	4.2	1.6	2.6	1.0	0.4	0.6
– All different¹	(10.8)	6.8	(17.6)	(4.6)	1.4	(6.0)
Present accident yr re-estimation²	–	(0.2)	0.2	–	–	–
Whole mixed ratio³	85.0 %	91.5 %	(6.5)	88.4 %	95.9 %	(7.5)


		1			Web of earned premium and reinstatement premium attributable to prior years.
		2			Re-estimation of the present accident yr loss reserves for the 9 months ended September 30, 2024.
		3			The mixed ratio, expressed as a proportion, is a measure of underwriting profitability. This measure ought to solely be used at the side of, and not in lieu of, underwriting earnings and will not be corresponding to different efficiency measures utilized by the Firm’s opponents. The mixed ratio is computed because the sum of the next property and casualty ratios: the ratio of claims and declare adjustment expense much less managed care earnings to earned premium; the ratio of insurance coverage working prices plus amortization of deferred coverage acquisition prices much less third-party administration earnings and price earnings (primarily associated to the Firm’s involuntary market servicing provider operations) and installment fees to earned premium; and the ratio of policyholder dividends to earned premium. Provisions for uncollectible premium and reinsurance usually are not included within the mixed ratio except associated to an asbestos and environmental commutation and sure different run off. Restructuring and acquisition and integration prices usually are not included within the mixed ratio.

Fairness:

	As of December 30,	As of December 31,
$ in Tens of millions	2025	2024	Change
Unassigned fairness	$41,166	$34,374	19.8 %
Amassed different complete loss	(1,506)	(3,928)	(61.7)
Non-controlling curiosity	227	206	10.2
Whole fairness	$39,887	$30,652	30.1 %

Subsequent Occasions

On February 2, 2026 the Firm closed the sale of its operations in Vietnam to Chubb.

Administration has assessed materials subsequent occasions by means of March 4, 2026, the date the monetary statements have been obtainable to be issued.

Monetary Data

The Firm’s monetary outcomes, administration’s dialogue and evaluation of working outcomes and monetary situation, accompanying monetary statements and different supplemental monetary info for the three and twelve months ended December 31, 2025 can be found on the Firm’s Investor Relations web site at www.libertymutualgroup.com/investors.

Convention Name Data

On March 5, 2026, at 10:00 a.m. Japanese Time, Tim Sweeney, Liberty Mutual Insurance Chairman and CEO, will host a convention name to debate the Firm’s fourth quarter monetary outcomes. To take part within the occasion by way of phone and to ask a query, please dial 844-481-2837 and request to hitch into the Liberty Mutual Insurance name. To take heed to the decision on-line by way of PC and view a presentation on monetary efficiency, please log into https://event.choruscall.com/mediaframe/webcast.html?webcastid=1z4MvG9Z . Following the decision, a recording of the occasion will probably be obtainable on the Investor Relations part of Liberty Mutual’s web site, www.libertymutualgroup.com/investors.

About Liberty Mutual Insurance

At Liberty Mutual, we consider progress occurs when folks really feel safe. For greater than 110 years we have now helped folks and companies embrace as we speak and confidently pursue tomorrow by offering safety for the surprising and delivering it with care.

A Fortune 100 firm with greater than 40,000 workers in 27 international locations and economies, we’re the ninth largest world property and casualty insurer and generate greater than $50 billion in annual consolidated income.

We function by means of three strategic enterprise items: US Retail Markets, offering auto, dwelling, renters and different private and small business strains property and casualty insurance coverage to people and small companies countrywide; International Danger Options, delivering a full vary of complete business and specialty insurance coverage, reinsurance and surety options to mid-size and massive companies worldwide; and Liberty Mutual Investments, deploying greater than $100 billion of long-term capital globally throughout its built-in platform to drive financial development, energy innovation and safe Liberty Mutual’s guarantees.

For extra info, go to www.libertymutualinsurance.com.

Cautionary Assertion Relating to Ahead Trying Statements

This report incorporates ahead wanting statements which are meant to reinforce the reader’s capability to evaluate the long run monetary and enterprise efficiency of the Firm. Ahead wanting statements embrace, however usually are not restricted to, statements that signify the Firm’s beliefs regarding future operations, methods, monetary outcomes, funding market fluctuations, or different developments, and include phrases and phrases akin to “might,” “expects,” “ought to,” “believes,” “anticipates,” “estimates,” “intends” or comparable expressions. As a result of these forward-looking statements are primarily based on estimates and assumptions which are topic to vital enterprise, financial and aggressive uncertainties, a lot of that are past the Firm’s management or are topic to vary, precise outcomes might be materially completely different.

Contact:

Investor Relations

Robert Pietsch
857-224-6655

Media Relations

Wealthy Angevine
617-833-0926

SOURCE Liberty Mutual Insurance

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