The Allstate Corporation has posted a net income of $1.2 billion in the first quarter of 2024, a substantial improvement from last year’s net loss of $346 million, as Property-Liability underwriting results improved.
At the same time, adjusted net income sat at $1.4 billion, compared to an adjusted net loss of $342 million in the prior year quarter.
The company’s Property-Liability earned premiums of $12.9 billion increased 10.9% in the first quarter of 2024 compared to the prior year quarter, which was primarily driven by higher average premiums from rate increases.
Underwriting income of $898 million in the quarter increased by $1.9 billion compared to the prior year quarter, due to increased premiums earned, improved underlying loss experience and lower catastrophe losses.
Allstate’s total revenues for Q1 were $15.3 billion, which represents an increase of 10.7%, or $1.5 billion, compared to the prior year quarter, which the firm notes was driven by higher average premiums that resulted in a $1.3 billion increase in Property-Liability earned premium.
The company’s recorded combined ratio for Q1 was 93%, compared to 108.6% from the prior year period.
In addition, premiums written of $13.2 billion increased 11.9% compared to the prior year quarter driven by both the Allstate brand and National General.
Moreover, the Allstate brands underwriting income in Q124 improved to $790 million, compared to the $972 million loss seen in the prior year quarter. Allstate noted that this figure was driven by higher earned premiums, lower catastrophe losses and improved underlying loss experience.
Tom Wilson, Chair, President and CEO of The Allstate Corporation, commented: “Allstate’s broad-based profitability reflects the benefits of strong operating capabilities, decisive actions to improve shareholder value and lower catastrophe losses. Auto profitability was enhanced as a growing number of states achieved targeted margin levels in the quarter. Industry leading home insurance capabilities, when combined with lower catastrophe losses, further improved profitability. Investment income increased primarily due to higher yields and extension of fixed income maturities over the last 18 months. Revenues reached $15.3 billion for the quarter, increasing 10.7% compared to the prior year. Net income was $1.2 billion with adjusted net income* of $5.13 per diluted common share.
He continued: “Allstate’s results support accelerated execution of the strategy to increase auto and home insurance market share and broaden protection provided to customers. Attractive auto insurance margins supported a significant increase in Allstate brand advertising, resulting in greater new business through Allstate agents and direct operations. National General increased policy growth through independent agents. Progress was also made in broadening protection offerings, with Allstate Protection Plans’ revenues increasing by over 20% due to an expanded product set and international growth. Allstate’s strategy, operational expertise, people, and financial strength will enable us to continue creating value for customers and shareholders.”
Meanwhile, Allstate recently revealed that it has raised the top of its Nationwide excess catastrophe reinsurance tower for 2024 to just over $7.9 billion, an increase of around $1 billion compared to 2023.
