Allstate Q1 profit jumps 42% as claims drop

US-based personal lines property/casualty insurer The Allstate Corporation benefitted from a decline in auto accident frequency and lower catastrophe losses in the first quarter of 2018.

The company reported an increase in net income of 42 percent year on year to $946 million in the first quarter of 2018. Allstate experienced good margins in the property-liability, life and benefits businesses and a lower tax rate, according to a statement. The recorded combined ratio dropped 4.9 points to 88.0 percent in the first quarter of 2018.

Catastrophe losses dropped 53.8 percent year on year to $361 million in the first three months of 2018 while property and casualty insurance premiums written grew 5.3 percent year on year to $8.13 billion.

Overall, total policies in force increased 16.2 percent year on year to $85.6 billion. Revenues climbed 1.3 percent to $9.77 billion over the period.

“Excellent execution of our operating plan led to increased growth and profitability in the first quarter of 2018,” said CEO Tom Wilson.

“We also benefitted from an unexpected decline in auto accident frequency, lower catastrophe losses and a reduction in federal taxes,” said Wilson added.

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