Reinsurance News

Allstate reports YoY growth in revenues of 20.7%

3rd February 2022 - Author: Pete Carvill

The Allstate Corporation has reported a YoY increase in revenues of 20.7% in its latest results.

Allstate logo newThe insurance giant reported that its consolidated revenues rose from $41,909m across the whole of 2020 to $50,588m in 2021.

It was also reported by the firm that its Q4 revenues in 2021 were 18.7% higher than those in Q4 2020.

Tom Wilson, chair, president, and CEO of the insurer, said in a statement: “Fourth quarter revenues were 18.7% above the prior year, reflecting about a 1 percentage point increase in auto insurance market share, increased investment income and growth in protection plans. Revenues for the full year were $50.6bn, 20.7% above the prior year, largely reflecting a 9.8% increase in policies in force and higher investment income.”

He added: “Net income was $790m as excellent results from homeowners insurance and performance-based investments were partially offset by lower auto insurance underwriting income. We are adapting to higher auto claim costs by raising premiums with Allstate brand implemented rate increases in the quarter at 2.9% of countrywide premiums, reducing expenses and managing loss costs.”

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The company’s property and liability results also rose, with an increase in premiums written of 15.6% between 2020 and 2021, with a 19.7% difference between Q4 2020 and Q4 2021.

It was also reported that Allstate Protection auto insurance net written premiums increased 16.6% and policies in force increased 16.4%, compared to the prior year quarter. This was driven, said the insurer, by the acquisitions of National General and SafeAuto and Allstate brand growth. Allstate brand auto net written premiums increased by 3.0%, compared to the prior year quarter.

It added: “The recorded auto insurance combined ratio of 104.3 in the fourth quarter of 2021 was 18.8 points above the prior year quarter, and the underlying combined ratio* of 100.2 was 15.3 points above the prior year quarter, primarily due to an increase in the loss ratio. The auto loss ratio increase was driven by higher claim severity from rising inflationary impacts and increased accident frequency as miles driven rebound toward pre-pandemic levels.”

Meanwhile, “Allstate Protection homeowners insurance net written premium grew 31.1%, and policies in force increased 7.8% compared to the fourth quarter of 2020, due to the addition of National General and Allstate brand growth. Allstate brand net written premium increased 13.8% compared to the prior year quarter, driven by policies in force growth of 1.5% and an increase in average premiums of 11.0% due to inflation in insured home valuations and implemented rate increases.”

Protection services revenues increased to $606 million in the fourth quarter of 2021, 21.9% higher than the prior year quarter, and written premium of $716 million increased by 28.1%. The insurer attributed this to the growth in Allstate Protection Plans, which rose 19.4% between Q4 2020 and Q4 2021.

It was also reported that Allstate Health and Benefits premiums and contract charges went up by over 75% compared to the prior year quarter. This was, said Allstate, due to the addition of group and individual health businesses acquired with National General.

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