Allstate Q2 profits more than double on price hikes
US personal lines insurer Allstate more than doubled operating and net incomes in the second quarter of 2017 on price hikes.
Net income jumped 127 percent year on year to $550 million in the second quarter of 2017. Operating income grew 117 percent to $510 million over the period.
“Allstate delivered strong financial performance in the second quarter as a result of excellent progress on our five 2017 Operating Priorities,” said Tom Wilson, chairman and CEO of Allstate.
The recorded combined ratio improved to 97.2 percent in the second quarter from 100.8 percent in the same period a year ago.
“Underwriting results were good for auto, homeowners and other personal lines despite $993 million of catastrophe losses,” Wilson noted.
Allstate brand auto net written premium grew 3.3 percent in the second quarter of 2017, reflecting a 5.4 percent increase in average premium compared to the prior year quarter, the company said.
As margins improved, Allstate expanded the number of states in which the company is implementing growth plans.
Allstate brand homeowners net written premium increased 0.9 percent in the second quarter of 2017 compared to the prior year quarter, reflecting a 1.8 percent increase in average premium.
Allstate brand other personal lines net written premium of $441 million increased 3.0 percent in the second quarter of 2017 compared to the second quarter 2016. The recorded combined ratio of 90.8 percent in the second quarter of 2017 improved by 0.4 points compared to the prior year quarter, driven by an improved loss ratio.
Overall, the company’s consolidated revenues grew 4.6 percent year on year to $9.59 billion in the second quarter.
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