Allstate picks up pace on rates in October, adds states at rising pace

US property insurer Allstate picked up the pace on rate hikes in October, securing rate hikes in at well above the pace noted throughout Q3.

And, for the first time in 2023, monthly catastrophe losses came in below the group’s reporting threshold of $150 million.

“Allstate continued to implement significant auto and homeowners insurance rate actions as part of our comprehensive plan to improve profitability,” Jess Merten, Allstate's CFO, said of the monthly data print.

“Implemented rate increases and inflation in insured home replacement costs resulted in a 12.2% increase in homeowners insurance average gross written premium in October 2023 compared to the prior year,” he said.

Across its two major brands, Allstate secured homeowner rate hikes in 10 locations in October, nearly half of the jurisdiction count secured for the full third quarter.

For automotive, the gains proved even broader. For the two brands, Allstate secured rate hikes in 36 jurisdictions, nearly 2/3 of the sum in all of Q3.

Automotive rate hikes appeared to also have increased to a double-digit pace. The rate gain came to 12% for the 12 locations secured by the Allstate brand and 9.2% for the 24 locations secured by the National General brand. Those gains each added neighbourhood 1% in rate to their respective books.

Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 10.4% for an expected annual written premium gain of approximately $2.70 billion, Mertens noted.

Rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 9.6% for an expected annual written premium gain of approximately $982 million.

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