Allstate Turns in Net Income of $1.2B After Q3 Hurricanes

Allstate Corp. said its net income attributable to common shareholders for the third quarter was about $1.2 billion compared to a loss of $41 million during the same time a year ago.

The Northbrook, Illinois-based insurer recorded an improvement in its property-liability third quarter combined ratio – 96.4 from 103.4 the prior year.

As it had previously released, the home and auto insurer took on Q3 catastrophe losses of $1.7 billion, or about 44% more than a year ago during the same period. CEO Tom Wilson said Q3 results included hurricanes Beryl, Debby, Francine, and Helene. Allstate earlier this month said Helene caused $630 million in losses, pretax. Wilson said the storms generated over 100,000 claims.

Despite the losses, Allstate reported property-liability underwriting income of $496 million in Q3 compared to a loss of $414 million in Q3 2023.

Related: Liberty Mutual Estimates Up to $900M in Losses From Helene and Milton

The homeowners insurance segment generated a combined ratio of 98.2 compared to 104.4 a year ago though the line absorbed about $1.2 billion of Q3’s catastrophe losses from the hurricanes and other severe weather. Premiums written increased 15.5% to about $4.1 billion in Q3.

Wilson said new business sales in auto insurance went up 26% with more advertising spend and expanded distribution. Price increases implemented by Allstate resulted in some retention losses. The line recorded a combined ratio of 94.8 in Q3—7.3 points lower than the same quarter last year. Allstate said the ratio reflected higher earned premiums, better underlying loss experience and favorable prior year reserve development. Rate increases drove an 11.1% jump in premiums earned in auto.

Related: Florida’s Heritage Insurance Reports 5,400 Claims, $57M in Cat Losses From Milton

“Successful execution of the auto insurance profit improvement plan benefited results generating $486 million of auto insurance underwriting income,” Wilson said of Q3.