Allstate makes progress on profitability plan with substantial rate increases in 2023

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US primary insurer Allstate has reported that it continued to make progress on its plan to improve profitability in 2023, with rate increases in its auto insurance and homeowners insurance lines that resulted in premium impacts of 16.4% and 11.3%, respectively.

Allstate logo“In 2023, rate increases for Allstate brand auto insurance resulted in a premium impact of 16.4%, which are expected to raise annualized written premiums by approximately $4.27 billion, and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 11.3%, which are expected to raise annualized written premiums by approximately $1.16 billion,” explained Jess Merten, Chief Financial Officer of The Allstate Corporation.

The US primary insurer also disclosed that catastrophe losses were below the $150 million reporting threshold for December 2023, marking the third month in a row where this has occurred.

This compares to a relatively unstable Q3, where catastrophe losses were $1.2 billion, up 55% from the $763 million seen in Q3 2022.

Now, total catastrophe losses for the fourth quarter now total $68 million, pre-tax. Meanwhile, unfavourable prior year reserve reestimates, excluding catastrophes, totalled $199 million in the fourth quarter, with approximately $148 million related to personal auto, including costs for claims in litigation.

In December, Allstate implemented auto rate increases of 16.5% across 15 locations, resulting in a total brand premium impact of 5.0%, which includes the rate increases approved in December by the Departments of Insurance in California, New York and New Jersey.

The post Allstate makes progress on profitability plan with substantial rate increases in 2023 appeared first on ReinsuranceNe.ws.

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