Brought to you by:

Catastrophes send Liberty into the red

More than $US1.2 billion ($1.08 billion) of catastrophe losses pushed Liberty Mutual into the red in the quarter to June 30.

The mutual reported a loss of $US170 million ($154 million) compared with a $US220 million ($199 million) profit in the previous corresponding period, with President and CEO David Long saying catastrophes took their toll.

“It was an unprecedented second quarter in terms of severe storm and tornado activity in the US, and our operating results reflect the financial cost,” he said.

The group’s revenue rose 6% to $US8.56 billion ($7.7 billion) and net written premium rose 6% to $US7.72 billion ($6.99 billion). Liberty’s combined ratio increased 7.7 points to 112.4% due to the impact of disasters.