Financial Results
Liberty Mutual Insurance Reports Third Quarter 2024 Results
Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") reported net income attributable to LMHC of $892 million and $3.144 billion for the three and nine months ended September 30, 2024, versus income of $219 million and a net loss attributable to LMHC of $441 million for the same periods in 2023.
"For the third quarter, we reported net income attributable to LMHC of $892 million, reflecting strong underwriting performance in both our US Retail Markets and Global Risk Solutions businesses as well as solid investment results," said Tim Sweeney, Liberty Mutual President & Chief Executive Officer. "Our targeted underwriting strategies continue to drive strong financial results, with a 4.0-point improvement in the underlying combined ratio to 88.1%.
The total combined ratio, including catastrophes and prior year development, was 96.7% for the quarter, a 5.9-point reduction over prior year. We continue to make particularly significant progress in US Retail Markets, where our total combined ratio dropped 13.8 points to 94.9%, as earned rate, underwriting actions and improved frequency trends positively impacted the underlying loss ratio, which improved 10.2 points from prior year.
Catastrophe losses remained elevated, with consolidated pre-tax net catastrophe losses in the quarter of $1.1 billion including $458 million from Hurricane Helene.
Zurich Insurance Group financials – all segments grow
Insurer on track to exceed all current targets
Zurich Insurance Group financials – all segments grow Insurance News
Zurich Insurance Group has reported all-around growth in its financial results for the nine months ended September 30, 2024.
In its interim earnings announcement, the insurer said it “delivered a robust performance in the first nine months of the year, with all businesses contributing positively” to Zurich’s financials during the period.
In terms of insurance revenue, the property & casualty segment saw an increase from US$31.42 billion in 9M 2023 to US$33.26 billion this time around. All regions – EMEA (Europe, Middle East, and Africa), North America, Asia-Pacific, and Latin America – posted higher insurance revenues.
The life business also enjoyed improved insurance revenue for short-term insurance contracts, with the figure growing from US$1.66 billion previously to US$2.10 billion in 9M 2024.
Swiss Re increases P&C Re reserves by $2.4 billion amid US liability review
Additional reserves position the reinsurer at high end of best-estimate range
Swiss Re announced a $2.4 billion addition to its property and casualty reinsurance (P&C Re) reserves for prior-year US liability exposures in Q3 2024, following a comprehensive review.
This move, aligned with Swiss Re’s strategy to maintain reserves at the upper end of its best-estimate range, brought total reserve additions to $3.1 billion for the first nine months of the year. These additions were partially offset by releases in other business lines, resulting in a net reserve increase of $2.0 billion in P&C Re for the third quarter.
Group CEO Andreas Berger stated that bolstering the company's resilience has been a core management objective.
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“We conducted a comprehensive review of our P&C reserves, considering the latest industry data and legal trends. With the decisive actions in the third quarter, we have reached our goal of positioning reserves at the higher end of the best-estimate range. Importantly, we have addressed reserve developments in our entire US liability portfolio, including all prior underwriting years,” he said.
Swiss Re estimates a net income of approximately $0.1 billion for Q3 2024 and about $2.2 billion for the first nine months of the year. Beyond US liability reserving, the quarter included strong underlying results from underwriting and investment across all business units.
Hagerty Reports Third Quarter 2024 Results; Updates 2024 Outlook for Revenue and Profit Growth
Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and leading specialty vehicle insurance provider, announced today financial results for the three and nine months ended September 30, 2024.
"Hagerty delivered yet another excellent quarter of strong revenue growth and operational efficiencies as we execute on our multi-year initiatives to drive sustained underlying profit growth. Year-to-date total revenue jumped 20% due to new business count gains and our growing Marketplace business. Our disciplined approach to expense management and optimization continued to drive margins higher. During the first nine months of 2024, we produced Net Income of $70 million and Adjusted EBITDA of $105 million," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.
"Given the strength of our results over the first nine months, we have increased our total revenue expectations for the year to 18-19% with written premiums on track to grow 15%. Our bottom line expectations were tracking consistently with our prior guidance before incorporating the losses from hurricanes Helene and Milton. After including catastrophe losses, we now expect net income growth of 131% to 163% and Adjusted EBITDA growth of 25% to 36%," continued Mr. Hagerty.
Third quarter 2024 Written Premium increased 13% year-over-year to $287.6 million, and year-to-date 2024 Written Premium increased 16% year-over-year to $827.1 million
Third quarter 2024 Loss Ratio of 60.0% (includes $24.7 million of pre-tax catastrophe losses related to Hurricane Helene) compared to 41.1% in the prior year period. Year-to-date 2024 Loss Ratio of 47.7% compared to 41.5% in the prior year period
Hippo Reports Third Quarter 2024 Financial Results
Hippo (NYSE: HIPO), the home insurance group focused on proactive home protection, today announced its consolidated financial results for the three months that ended September 30, 2024.
"The positive momentum we've built over the past year continued in the third quarter as we took a significant step forward on our path to profitability," said Hippo President and CEO Rick McCathron. "We strengthened our foundation for future growth by continuing to develop our Hippo New Homes Program and delivered our best-ever year-over-year improvement to our HHIP non-weather loss ratio--positioning us for a successful fourth quarter and sustained growth in 2025 and beyond."
Hippo also announced that it sold a majority stake in First Connect Insurance Services to Centana Growth Partners, who will invest new capital into First Connect to fund its future growth.
"Since we acquired First Connect in 2020, it has become the premier platform for connecting independent agents with third-party carriers. As Hippo focuses more and more on its core business, we felt this was the ideal time for First Connect to chart its own path. We are excited to remain a customer, partner, and minority shareholder as First Connect continues leveling the playing field for independent agents."
Complete financial results and full year guidance for 2024 can be found in the company's shareholder letter in the Investor Relations section of Hippo's website at https://investors.hippo.com/.
Third Quarter Highlights
Revenue up 65% YoY to $95 million; premium retention more in-line with risk-retention
HHIP Q3 accident period loss ratio improved 22pp YoY to 70%; non-PCS loss ratio improved 15pp YoY to 52%, PCS loss ratio improved 7pp YoY to 18%
HHIP Q3 gross loss ratio improved 3pp YoY to 72%
HHIP net loss ratio improved 67pp YoY to 84%
News
CARFAX: 347,000 Cars Flood Damaged in 2024 Hurricanes
As many as 347,000 vehicles have been flood-damaged so far by the 2024 hurricane season, CARFAX estimates. Hurricane Milton added as many as 120,000 vehicles in Florida, on top of the 138,000 vehicles deluged by Hurricane Helene across several states. Up to 89,000 vehicles were hit with water damage from smaller storms during the summer. Now, thousands of these vehicles may already be put up for sale, cleaned up by potential scammers to be sold nearby, or thousands of miles away from the original incident to unsuspecting buyers.
This is the most destructive year for hurricanes and storms in the U.S. since Hurricane Ian swamped as many as 358,000 vehicles across several states back in 2022, according to CARFAX estimates. Water damage can cause costly mechanical and electrical issues and even pose risks to health and safety.
Progressive Home® to Discontinue Dwelling Fire (DP 3) Line of Business for Non Primary Residences and Rental Property Owners
Progressive Home today announced its decision to discontinue offering the Dwelling Fire line (DP-3) of business. The move is a continuation of various actions Progressive Home has already taken in several states as part of the company's ongoing, strategic efforts to ensure the long-term stability of its property business for the benefit of both customers and independent agents.
A DP-3 policy protects properties that are not the owner's primary residence such as vacation homes, seasonal properties or investment homes used as short-term rentals. DP-3 policies represented 3.6% of all Progressive property policies as of September 30, 2024.
Progressive Home's decision to discontinue offering DP-3 is part of a series of initiatives it has already begun in some states and plans to implement across all states, in accordance with state regulatory requirements.
These actions include a focus on insuring owner-occupied homes and bundled business, increasing the minimum required Wind/Hail deductibles, mandating the Roofing Materials Payment Schedule endorsement, and ensuring agent alignment on underwriting quality expectations. Progressive Home remains committed to the property market and these actions will help better position the company to build a stronger and more competitive property business for consumers and independent agents moving forward.
Judge: All Maui Wildfire Insurance Claims Must Be Made Public - Honolulu Civil Beat
Insurance companies have a month to make public lists of every insurance claim related to the wildfire that killed 102 people on Maui and destroyed much of Lahaina, including the amount of each claim, the amount actually paid out and the rationale for the payment.
Maui Circuit Court Judge Peter Cahill acknowledged the task is a “heavy lift.” But Cahill said he needs the information filed in court by Dec. 2 “to evaluate the best means and method to manage each case, individual claims, and trials.”
Cahill’s order promises to provide an extraordinary, perhaps unprecedented, cache of data normally hidden from the public, including details of contracts between more than 140 insurance companies and thousands of policyholders – and how those contracts are playing out in the context of a mass disaster.
Maui Judge Peter Cahill has given insurers until Dec. 2 to provide a trove of information on wildfire claims and payments. But the insurance industry is pushing back. On Wednesday, industry lawyers asked for a conference with the judge to discuss numerous issues, including the legal basis of Cahill’s order. The industry also wants to discuss the need for a protective order to prevent confidential information from being made public.
Cahill’s order underscores the enormity of the litigation potentially facing Hawaii courts.
If a proposed, $4 billion settlement of the wildfire litigation can’t be finalized, Cahill could face the wildly complicated task of managing hundreds of trials related to the fires.
NEWS FROM SEMA/MSO 2024
2024 SEMA Show Day 3: OEM Summit Brings Together Automakers, Collision Repairers
The SEMA Show's annual OEM Summit was focused this year on repair procedures and new technology.
In addition to the acres of custom builds and vendor displays at the 2024 SEMA Show, being held Nov. 5-8 in Las Vegas, NV, the third day featured the annual OEM Summit.
The three Summit sessions wrapped up SCRS’s Repairer Driven Education series for this year’s show, with a focus on development and evolution of automaker repair procedures, the increasing role of telematics technologies and emerging applications of laser welding.
The first of three OEM Summit sessions featured Rivian representatives.
“The first two sessions are about looking at ideas that I can take back and put into play in my business,” SCRS Executive Director Aaron Schulenburg said before the show. “The third is about looking at the future of the industry, how things are evolving, how technology is evolving, how that changes what we're looking at.”
The second session, featuring Hilary Cain with the Alliance for Automotive Innovation, John Eck of GM and OnStar, and Ryan McMahon of Cambridge Mobile Telematics, shared how vehicle telematics bring new opportunities in the relationship between collision repairers and insurers -- and the customers whose vehicles they repair.
Focus Advisors talks Industry Landscape at the MSO Symposium
[Ed. Note: Excellent Presentation, Highly Recommended]
On Monday, November 4th, Focus Advisors Founder and Managing Director, David Roberts, presented at the 13th annual MSO Symposium in Las Vegas on the state of consolidation in the collision repair industry and gave an overview of the nation’s largest and fastest-growing MSOs.
His full presentation is available for download if you’d kindly provide your name, company, and email address in the fields below.
I-CAR Presents Annual Industry Achievement Awards - CollisionWeek
The Inter-Industry Conference on Auto Collision Repair (I-CAR) celebrated the recipients of its annual technician and repair facility of the year awards during the Collision Industry Red Carpet Awards Night at SEMA in Las Vegas.
This annual event honors individuals and organizations that have made remarkable contributions to advancing the collision repair industry. The Jeff Silver and Russ Verona Awards specifically recognize one individual and one collision repair facility that have demonstrated a steadfast commitment to technical education and professionalism, aligning with I-CAR’s vision of delivering complete, safe, and quality repairs for the ultimate benefit of consumers. These awards underscore leadership, dedication to continuing education, and a forward-thinking approach that drives the industry toward a stronger future.