Allstate continues redemption run with improved results in Q2
Allstate continues redemption run with improved results in Q2 | Insurance Business America
Insurance News
Allstate continues redemption run with improved results in Q2
Total revenues increase by $14 billion YoY
Insurance News
By
Kenneth Araullo
The Allstate Corporation reported its financial results for the second quarter of 2024, highlighting several key performance metrics.
Total revenues for the quarter reached $15.7 billion, up $1.7 billion from the previous year, driven primarily by an increase in property-liability earned premiums. The company reported a net income of $301 million attributable to common shareholders, a significant improvement from a net loss of $1.4 billion in the prior year’s quarter.
Adjusted net income stood at $429 million, or $1.61 per diluted share, compared to an adjusted net loss of $1.2 billion in the previous year.
Property-liability earned premiums rose 11.9% to $13.3 billion, largely due to higher average premiums resulting from rate increases. The underwriting loss for the quarter was $145 million, an improvement of $1.9 billion from the previous year’s $2.1 billion loss.
Premiums written increased by 13.1%, with the Allstate brand rising by 10.0% and National General by 29.1%.
The property-liability combined ratio was 101.1 for the quarter and 97.1 for the first six months of 2024. The underlying combined ratio was 85.3, an improvement of 7.6 points from the previous year. This was attributed to higher earned premiums, improved loss experience, and operating efficiencies, partially offset by increased advertising expenses.
Allstate protection’s auto insurance segment reported a recorded combined ratio of 95.9, down 12.4 points from the previous year. The Allstate brand auto insurance recorded a combined ratio of 96.9, a decrease of 11.2 points, primarily due to higher average earned premiums.
National General auto insurance’s combined ratio was 91.9, down 17.9 points, reflecting improved results and favorable reserve re-estimates.
For homeowners insurance, Allstate brand implemented rate increases in 12 locations, averaging 9.9%, resulting in a 10.7% increase in average gross written premium. National General implemented rate increases in 12 locations, averaging 14.6%.
The combined ratio for homeowners insurance improved to 111.5, down 33.8 points from the previous year, due to lower catastrophe losses and higher earned premiums. Catastrophe losses for the quarter were $1.6 billion, a decrease of $573 million from the prior year.
Tom Wilson, chair, president, and CEO of The Allstate Corporation, commented on the company’s performance, noting the strong execution of the profit improvement plan.
“Allstate’s strategy of providing affordable, simple and connected protection resulted in strong policy growth in National General branded property-liability insurance and Allstate protection plans sold by retailers,” Wilson said.
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