Focusing on net written premium (NWP), LMHC’s total NWP hit US$12,521 million in Q2 2022 (up 15.5% from US$10,845 million in Q2 2021) and US$24,088 million in H1 2022 (up 13.4% from US$21,246 million in H1 2021).
LMHC chairman and CEO David H. Long said the net loss in Q2 2022 was driven by investment market volatility and insurance loss cost inflation.
“Pre-tax net realized investment losses of US$671 million, along with inflation-driven underwriting margin, erosion in some lines of business were the key drivers of Q2 results,” Long said. “While rising interest rates are causing some short-term pressure on investment results, we expect higher net investment income to be a significant tailwind in future periods.
“The underlying combined ratio in the quarter increased 5.0 points to 96.8%, reflecting elevated severity in…