Liberty Mutual incurred record catastrophe losses in 2011, with the Thai floods dragging down its fourth-quarter result.

The company reported net income of $US284 million ($268 million) for the three months and $US368 million ($347 million) for the year, compared with $US1.68 billion ($1.58 billion) in 2010.

Revenues rose 5% for the quarter to $US8.9 billion ($8.4 billion) and 4.5% for the year to $US34.7 billion ($32.7 billion).

CEO David Long says catastrophe losses of $US2.7 billion ($2.5 billion) pre-tax were a record high. The figure is more than double 2010’s figure and includes $US234 million ($220 million) of cat losses for the quarter.

Mr Long says the company continues to expand and is seeing a favourable pricing trend across multiple business lines.

“Collectively, these position us well for a more prosperous 2012.”