Allstate Corp. on Thursday reported January pretax disaster losses of $276 million.
The Northbrook, Illinois-based insurer reached its $150 million threshold to report disaster losses following a number of months of low totals. Consolidated disaster losses for the fourth quarter 2023 totaled $68 million in comparison with $779 million throughout the identical quarter the prior 12 months.
Related: Allstate Reverses This fall Loss With Benefit of Low Cat Losses, Auto Rate Increases
Catastrophe losses in January had been $218 million after tax, Allstate mentioned. Two occasions throughout the month accounted for about 80% of the $325 million in January disaster losses, offset considerably by favorable reserve re-estimates for prior occasions, the insurer added.
In addition to reporting disaster losses, Allstate provides month-to-month updates on its auto fee will increase because it has for the Allstate model and the National General nonstandard model frequently because the starting of 2022. In January, Allstate auto fee hikes resulted in a premium impression of 1.4% — anticipated to usher in annualized written premiums of about $363 million.
During a name final week with analysts to debate fourth quarter earnings, Mario Rizzo, president of property-liability, mentioned Allstate-brand auto fee will increase had been greater than 33% during the last eight quarters — with the very best hikes coming in California, New York, New Jersey, and Texas. He mentioned these states accounted for 36% of auto written premiums within the U.S. In December, Allstate acquired approvals for auto fee will increase in California, New York, and New Jersey.
Related: Mission Accomplished: Allstate Announces Calif., NY, NJ Rate Approvals
Rizzo instructed analysts that the 30% fee enhance California authorised permits Allstate to “feel comfortable writing business in California.” He mentioned New Jersey is “kind of the opposite story” as a result of Allstate filed for a 29% enhance and was authorised for, he mentioned, “just under 17%.”
“As a result of that, we are going to continue to take the more restrictive underwriting actions that we have been taking in New Jersey, which means we will continue to get smaller in New Jersey,” mentioned Rizzo, including that Allstate has two fee filings pending within the state.
On New York, Rizzo mentioned, “We still need more rate.” The recent 14.6% fee enhance approval there helps, however Allstate intends to file for its full fee want quickly.
Jess Merten, Allstate chief monetary officer, added, “Implemented rate increases and inflation in insured home replacement costs resulted in a 12.1% increase in homeowners insurance average gross written premium in January 2024 compared to the prior year.”
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