Catastrophe losses for the January occasions were approximated at $309 million, partly balanced out by beneficial reserve reestimates for previous occasions.
In the exact same statement, Allstate upgraded its effort to speed up vehicle insurance coverage rate boosts.
“Allstate continued to implement significant auto insurance rate actions in response to inflationary increases to loss costs,” said Jess Merten, primary monetary officer Allstate Corp. “During the month of January, the Allstate brand implemented auto rate increases of 9.9% across 13 locations, resulting in total brand premium impact of 0.7% which are expected to raise annualized written premiums by approximately $182 million.”
Allstate executed $1.48 billion and $1.14 billion of rate boosts in the 4th and 3rd quarters of 2022, respectively.
The upgrade happens 2 weeks after Allstate reported a loss of $310 million in the 4th quarter, mainly associated to unprofitability in the vehicle insurance coverage sector where Allstate tape-recorded an underwriting loss of $974 million (a loss of $3 billion for all of 2022).
Related: Allstate Reports $310M Q4 Loss as Auto Claims Costs Motor Past Rate Hikes
“The comprehensive plan to return auto insurance margins to target levels continues to be implemented in 2023 and is expected to further increase average premiums, reduce expenses and lower policy growth,” said CEO Tom Wilson.
In a call with experts to go over revenues, Allstate’s Mario Rizzo, president of Allstate Property-Liability, detailed the insurance company’s strategy to bring back earnings in its vehicle insurance coverage business. Other than raising rates, Rizzo said marketing expenses have actually been cut to handle brand-new business, and underwriting standards have actually been tightened up.
Related: Allstate’s Plan to Return to Profit in Auto
But regardless of disaster losses, Wilson just recently said he sees property owners insurance coverage as a “growth business.” Allstate booked 4th quarter disaster losses of $779 million – driven by losses from Winter Storm Elliot. The Q4 integrated ratio for the sector increased 5.5 points however stayed at 92.6. Wilson said Allstate’s property owners integrated ratio in between 2017 and 2021 balanced 12 points much better than the market.
Topics
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Profit Loss
Pricing Trends
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