Allstate’s Wilson says personal protection growth strategy ‘working’
US insurer Allstate Corporation said its strategy to grow its personal protection market share, including the acquisition of InfoArmo, is working as it reported its 2018 year end results.
Consolidated revenues were up 1 percent to $39.8 billion from $39.4 billion in the previous year. However, net income applicable to common shareholders showed a 31.5 percent loss in 2018, falling to $2.1 billion from $3 billion in 2017 (non-GAAP), while the underlying combined ratio also worsened slightly by 0.9 percentage point to 85.8 percent from 84.9 percent a year earlier.
Tom Wilson, chair, president and chief executive officer of Allstate Corporation, said: “The strategy to grow market share in personal protection is working with growth in auto and home insurance, workplace benefits and protection plans. We also expanded identity protection by acquiring InfoArmor.
“Full year revenues increased to $40.7 billion, excluding realized capital gains and losses. Policies in force increased 2.4 percent in Allstate Protection insurance, and the addition of 30 million SquareTrade protection policies brought our total to over 113 million. Arity, our connected car platform, is now collecting 10 billion miles of driving data per month through expansion of third-party connectivity.
“Operating results for 2018 were strong with achievement of the five operating priorities. Customers were better served with increased net promoter scores, which supported higher growth. Attractive returns were generated as the underlying combined ratio was better than the range established at the beginning of the year. Adjusted net income was $8.07 per share, 20.3 percent higher than 2017, and adjusted net income return on common shareholders’ equity was 14.8 percent. Reflecting these results, the underlying combined ratio* for the property-liability business is expected to be between 86 and 88(1) in 2019.”
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