Allstate Corp. reported $594 million in estimated pretax catastrophe losses for April, with approximately 60% of the total stemming from two widespread wind and hail events. The company said it experienced 11 total catastrophe events during the month.
In a monthly update, Allstate noted slight shifts across its insurance portfolio. Allstate Protection auto policies declined marginally in April, while commercial lines dropped by 31.6%. In contrast, homeowners policies increased by 2.5%, contributing to a 0.3% rise in total policies in force to 37,812.
During the company’s first-quarter earnings call, Mario Rizzo (pictured above), president of property-liability, discussed the insurer’s focus on improving customer retention.
“We’re beginning to see signs of growth," as policies edged up 0.1% in the quarter, Rizzo said, according to a report from AM Best.
Allstate chair, president and CEO Tom Wilson said the growth in homeowners policies reflects gains in unit share.
"As far as I know, we're not adding 2.5% to the housing stock in the United States, which means we're picking up unit share,” he said.
Allstate reported $566 million in first-quarter net income applicable to common shareholders, down from $1.19 billion during the same period last year. Catastrophe losses for the quarter reached $2.2 billion, up from $731 million a year earlier. The increase was driven in part by losses related to the January wildfires in Los Angeles.
Total revenues rose 7.8% year over year to $16.5 billion. Adjusted net income was $949 million, or $3.53 per diluted share, compared to $1.4 billion in the first quarter of 2024. The adjusted net income return on common shareholders’ equity stood at 23.7%.
Gross written and earned premiums in the homeowners segment increased by 20.1% and 15.9%, respectively, driven by rate increases and a 2.5% growth in policies in force.
In April 2024, Allstate had reported $494 million in catastrophe losses, the highest monthly total for that year at the time.
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