Allstate Corp.’s Q3 2024 net income surged to $1.16 bn from a $41 mn net loss in the same period last year, driven by improved property-liability underwriting results.
Property-liability underwriting income reached $495 mn, compared to a $414 mn loss in the prior year. The combined ratio strengthened by 7.0 points, landing at 96.4.
Property-liability premiums written grew 10.5% to $14.7 bn, boosted by increased premiums across both Allstate and National General brands, according to the company.
Wilson highlighted Allstate’s deployment of over 5,000 team members to manage more than 100,000 claims resulting from hurricanes Beryl, Debby, Francine, and Helene.
Executing the auto insurance profit improvement plan contributed $486 mn in auto insurance underwriting income. Homeowners insurance also delivered solid returns with a quarterly underwriting profit despite $1.2 bn in catastrophe losses, which rose 40% year-over-year
Tom Wilson, Chair, President, and CEO
Hurricane Milton, which hit early in the fourth quarter, is expected to result in approximately $100 mn in Q4 losses in Florida, Wilson added.
Allstate’s new auto business sales increased 26%, driven by expanded advertising and distribution efforts. However, retention losses from substantial price increases over recent years offset this growth, leading to a reduction in the number of active auto policies.
Auto severity estimates for claims from the first two quarters were lowered in the third quarter, positively impacting the quarterly results.
The favorable development of $55 mn in prior-year non-catastrophe reserve reestimates was largely due to physical damage coverages, Allstate reported.
