CFO says company has been focused on implementing its profitability plan
By Mika Pangilinan
Jan 19, 2024 Share
Allstate revealed Wednesday that its catastrophe losses for the fourth quarter of 2023 amounted to $68 million.
In the same quarter, the Illinois-headquartered insurer said it had $199 million in unfavorable prior-year reserve reestimates, excluding catastrophes.
Approximately $148 million of this total went towards personal auto claims, according to Allstate, including the costs associated with claims in litigation.
In a news release, chief financial officer Jess Merten said the company has been focused on making progress on its profitability plan throughout the year.
He said the rate increases implemented this year for Allstate brand auto insurance resulted in a premium impact of 16.4%, which is expected to boost annualized written premiums by around $4.27.
Similar rate increases for Allstate brand homeowners insurance amounted to an 11.3% premium impact, Merten added, potentially raising annualized written premiums by roughly $1.16 billion.
For the month of December, Allstate reported executing a 16.5% auto rate increase across 15 locations, resulting in an overall brand premium impact of 5%. This includes the rate increases approved by insurance regulators in California, New York, and New Jersey.
Allstate plans to make its SEC filing and announce quarterly results after the market’s close on February 7, according to the release.
In other Allstate news, the company recently revealed that it will be ceasing non-English insurance sales in Colorado.
Agents were issued a memo last month stating that all advertising and insurance sales must be done exclusively in English in compliance with a new state law requiring companies to furnish policy documents in the language they use for advertising.
“You are only authorized to advertise, prospect, quote or sell property and casualty policies on behalf of Allstate in English,” the memo dated December 8 said. “This activity in any other language on behalf of Allstate is no longer authorized.
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