Cat losses take their toll on Allstate
Insurer Allstate enjoyed a solid third quarter as its profits more than doubled, despite being hit by higher cat losses.
Its profits hit $750 million in the third quarter of 2014, compared with $310 million in the third quarter of 2013.
The insurer’s combined ratio deteriorated slightly to 93.5 percent, compared with 90 percent in the third quarter of 2013, as it experienced $517 million of cat losses, compared with $218 million of cat losses in the same period of the prior year.
“Allstate grew across brands and customer segments while generating excellent profitability, despite a significant increase in losses from severe weather. The combination of a unique strategy and operational focus continues to improve our competitive position and create value for shareholders,” said Thomas Wilson, chairman, president and chief executive officer of The Allstate Corporation.
“Over the last year, we added 790,000 policies in force, a 2.4 percent improvement, and net written premiums increased by $1.4 billion for the trailing twelve months. The Allstate brand increased both auto and homeowners policies, reflecting the execution of a comprehensive growth plan.
“Esurance continued to increase its market share of the self-serve branded segment, although policy growth moderated to 14.1 percent in the third quarter given profit improvement initiatives. Similarly, policy growth at Encompass slowed to 3.1 percent over the prior year quarter,” continued Wilson.
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