Liberty Mutual has reported net income attributable to shareholders of $6.8bn in 2025, a 55% increase compared to $4.34bn in the previous year.

Annual revenue increased marginally by 0.5% to $50.5bn, while net premiums written fell by 3.1% to $43.6bn from $44.9bn last year.

The insurer recorded a combined ratio of 88.4%, down from 95.9% for 2024.

Catastrophe-related losses over the same period dropped by 28.7%, totalling $2.8bn compared to $3.9bn in 2024.

Segment results showed a 6.4% decrease in net premiums written for US Retail Markets (USRM), bringing the figure to $26.5bn, while Global Risk Solutions (GRS) saw an increase of 4.7% to $17.1bn.

For the fourth quarter of 2025 (Q4 2025), Liberty Mutual’s net income rose by 37.1% year-on-year (YoY) to $1.7bn, with a combined ratio of 85%, compared to 91.5% in the same period of 2024.

Total revenue for Q4 was up by 4.4%, reaching $12.8bn versus $12.2bn in Q4 of the prior year.

Quarterly catastrophe losses fell sharply to $30m, down from $234m a year earlier.

Quarterly net premiums written were stable at $10.5bn on an annual comparison.

Within segments for the quarter, USRM net premiums written declined by 4.9% to $6.3bn while GRS grew by 9.2% to $4.2bn.

Liberty Mutual chairman and CEO Tim Sweeney commented: “We made measurable progress on underwriting profitability in the fourth quarter, delivering a consolidated combined ratio of 85.0% and net income attributable to LMHC [Liberty Mutual Holding Company] of $1.7bn.

“The 6.5-point improvement in our combined ratio for the quarter was supported by favourable prior-year development and lower current-year catastrophe activity, while the underlying combined ratio of 91.4% reflected the impact of investments we are making to support growth initiatives. Investment results, including $790m of limited partnerships income in the quarter, continued to provide a meaningful earnings tailwind.”