Global insurer Liberty Mutual group has revealed Q1 profits of £425m for the three month period ending 31 March 2020.
It reported net written premiums for the three months ended March 31, 2020 was $10bn (£8.2bn) an increase of $340m (£283m) or 3.5% compared with the same period in 2019. The result comes despite Liberty Mutual suffering net realised losses of$247m (£202m) the period.
David H. Long, Liberty Mutual chairman and CEO, said: “Our investment portfolio was impacted by the market volatility surrounding COVID-19 as we recognized losses of $247m (£202m) from a decline in market value in public equities. Our balance sheet was further impacted by unrealized investment losses of $576m (£473m) from the fixed income portfolio, which contributed to a 2% decline in equity.
“Despite the challenges and uncertainties posed by COVID-19, we are confident in our
ability to withstand this crisis and to continue to support our customers when they need us most.”
He added: “On the insurance side, the situation is still evolving and did not materially impact our results through the first quarter. Looking ahead we expect the insurance impact to be similar to what we have experienced for a moderately sized catastrophe loss.
“The lines of business we expect to be the most exposed to losses related to the pandemic include trade credit, general liability, workers compensation, and event cancellation, among others. With respect to business interruption, we do not expect to have material losses based on the contractual language in our policies.”