Allstate Quarterly Profit Jumps on Sharp Drop in Catastrophe Losses

Allstate reported a jump in first-quarter profit on Wednesday as the property and casualty insurer benefited from a sharp fall in catastrophe losses.

Earnings rose across the insurance industry on weaker catastrophe losses in the quarter. The prior year’s quarter results were affected by the impact of the California wildfires.

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Here are some details:

• Property-liability unit catastrophe losses shrank to $1.24 billion in the quarter, compared with $2.20 billion a year earlier.
• Net income applicable to common shareholders was $2.43 billion in the three months ended March 31, compared with $566 million a year earlier.
• Net investment income jumped to $938 million in the quarter from $854 million a year earlier, underpinned by strong gains in its market-driven investment portfolio.
• “Market share of auto and homeowners insurance increased in many states due to a comprehensive approach of more affordable prices, new products, expanded benefits, bundled offerings, lower expenses, sophisticated analytics and increased marketing,” CEO Tom Wilson says.
• Property-liability unit combined ratio was 82% in the quarter, compared with 97.4% a year earlier. A ratio below 100% indicates an insurer earned more in premiums than what it paid out in claims.

(Reporting by Basil in Bengaluru; Editing by Tasim Zahid)