Liberty Mutual Holding Co. Inc. has reported a 46 percent increase in net income during the third quarter, despite elevated catastrophe losses.

The company reported Q3 net income of $397 million, compared with $272 million during the same period last year.

“Results benefited from strong investment income as valuations in our partnership portfolio, booked on a quarter lag, rebounded from March lows,” said Liberty Mutual Chairman and Chief Executive Officer David H. Long.

“Catastrophe losses of nearly $1 billion, which doubled from the prior year quarter, were driven by an increased frequency of events across the U.S., including Hurricane Laura and the wildfires on the west coast,” Long said in a statement. (Liberty Mutual reported $980 million in catastrophe losses for the quarter, compared with $428 million for the same period last year).

Including the impact of catastrophes, COVID-19, net incurred losses attributable to prior years and current accident year re-estimation, the total combined ratio for the third quarter was 104, an increase of 1.5 points over the same period in 2019. (Combined ratios above 100 indicate an underwriting loss).

Net written premium for the three months ended Sept. 30 was $10.7 billion, an increase of $385 million or 3.7 percent over the same period in 2019.

The company’s third quarter revenue was $11.4 billion, a 4.9 percent increase from $10.8 billion in revenue reported for the third quarter of 2019.

Source: Liberty Mutual Holding Co.

*This story ran previously in our sister publication Insurance Journal.