US primary insurer Allstate has revealed that its net income applicable to common shareholders in Q2 of 2024 was $301 million, up from a net loss of $1.4 billion in the same quarter of 2023, driven by improved Property-Liability underwriting results.
Earned premiums of $13.3 billion in the Property-Liability segment in Q2 of 2024 marked an 11.9% increase compared to the prior year’s quarter, primarily driven by higher average premiums from rate increases.
At the same time, the Q2 2024 underwriting loss of $145 million in this segment was $1.9 billion better than a $2.1 billion loss in Q2 of 2023.
On the back of this, Allstate’s total revenues in Q2 of 2024 were $15.7 billion, $1.7 billion higher than the prior-year quarter.
Meanwhile, catastrophe losses in Q2 of 2024 were down to 2.1 billion compared to $2.7 billion in the same quarter of 2023.
With all this in mind, Allstate produced an underlying combined ratio of 85.3% in Q2 of 2024, down from 92.9% in Q2 of 2023.
Commenting on other segments, Tom Wilson, Chair, President and CEO of The Allstate Corporation, said, “Protection Services and the Health and Benefits businesses also generated strong results.
“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.
“National General’s policies in force increased by 12% over the prior year quarter and it is now one of the largest personal lines insurers serving the independent agent channel.
“Total Property-Liability policies in force declined by 0.8% reflecting fewer Allstate brand auto insurance policies as increased new business did not offset customer retention losses.
“Protection Plans policies in force increased by 9% with written premium of $518 million in the quarter, due to higher sales through US retailers and expansion of mobile phone protection plans in Europe.
“Allstate’s Transformative Growth plan, broad protection offerings and extensive distribution is expected to create additional shareholder value.”
