Liberty Mutual Insurance has reported a net loss of $US427 million ($592 million) for the September quarter, a dizzying reversal from a $US605 million ($838 million) net profit in the corresponding period last year.

The result took Liberty’s nine-month net profit to just $US103 million ($143 million), a huge setback compared with $US1.26 billion ($1.75 billion) in the corresponding period last year.

Chairman and CEO David Long says pre-tax operating income of $US677 million ($938 million) for the September quarter – up 14.2% – presents a more encouraging picture.

“Our continuing strong operating performance was masked in the third quarter by a non-recurring loss of about $US700 million ($970 million) from the deconsolidation of our Venezuelan subsidiary and energy investment-related losses,” he said.

The combined operating ratio improved 1.2 points to 95.6%.

Third-quarter revenue was down 2.5% to $US9.31 billion ($12.9 billion), net written premium fell 2% to $US8.78 billion ($12.17 billion) and net investment income decreased 5.6% to $US759 million ($1.05 billion).