US primary insurer Allstate has reported net income applicable to common shareholders in Q4 2023 of $1.5 billion, up massively compared to a loss of $303 million in the same quarter of 2022.
Tom Wilson, Chair, President and CEO of Allstate, explained that this positive turnaround was driven by “improved auto profitability and mild weather”.
Wilson added that improved underwriting performance and higher investment income reportedly generated an adjusted net income of $1.5 billion in Q4.
Allstate’s total revenues in Q4 of 2023 reached $14.8 billion, marking an increase of 8.7%, or $1.2 billion, compared to the prior year quarter. The firm said this was driven by a $1.2 billion increase in Property-Liability earned premium due to higher average premiums.
Allstate’s Q4 Property-Liability written premiums increased to $12.6 billion, 10.1% over the prior year quarter driven by rate increases in auto and home insurance and growth in policies at the firm’s National General business.
Meanwhile, Property-Liability underwriting income totalled $1.3 billion in Q4 with a combined ratio of 89.5%. The investment portfolio return was 4.6% as proactive actions, including fixed income duration extension, resulted in “excellent” investment returns.
Allstate’s underlying combined ratio for Q4 2023 was 86.9%, marking a 12.3% improvement from Q4 of 2022. Catastrophe losses in the quarter were just $68 million, down from $779 million in the same period of 2022.
As for the full year figures, Allstate recorded a net loss of $316 million for 2023, compared to a loss of 1.4 billion in 2022, while consolidated revenues in 2023 were $57 billion, up 11.1% from the previous year.
Full year 2023 catastrophe losses were $5.6 billion, up from $3.1 billion in 2022, though Allstate’s underlying combined ratio for the year improved to 91.2% from 95.1% in 2022.
