Claim Costs Reduce Liberty Mutual's Net Income

Burdened with rising claim costs, net income for Liberty Mutual fell 35% from the second quarter of 2014 to the second quarter of this year. The carrier reported in its earnings report Wednesday net income of $254 million in the second quarter, down from $391 million a year ago. Liberty Mutual's revenues increased $432 million, or 4.3%, during the quarter, including a $334 million increase in earned premium. However, a $341 million rise in claim costs and loss-adjustment expenses paved the way for an increase in overall expenses of $633 million, or 6.8%. Liberty Mutual's combined rat...