Liberty Mutual Insurance’s net income fell 33% to $US1.03 billion ($1.61 billion) in the first quarter, driven by the record fires in California in January.

Catastrophe losses jumped 121% compared with a year earlier, to $US1.82 billion ($2.77 billion).  

First-quarter revenue was up 0.1% to $US12.49 billion ($18.98 billion).

“Despite elevated catastrophe losses driven by the devastating California wildfires, our total combined ratio including these losses and prior-year development was 96.6%,” chairman and CEO Tim Sweeney said.

“We continue to pursue profitable growth and progress toward our 95% combined ratio goal at the end of 2025.”

The underlying combined operating ratio improved 6.5 percentage points to 81.9%, Mr Sweeney says.

US retail market net written premium fell 7% to $US6.06 billion ($9.21 billion).

The Boston-based group is the ninth-largest global general insurer by gross written premium. It had $US50.2 billion ($76.3 billion) in annual consolidated revenue at the end of last year.