Allstate
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Part of the company's plan to improve auto insurance margins is to file for greater rate increases in 2023, along with lowering operating expenses and advertising spend. -
Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The firm recorded a $282mn reserve charge in the quarter, of which $180mn was related to an increase in personal auto claim frequency attributable to prior accident years.
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Five auto insurers receive approval to raise rates after 32-month halt by the California Department of Insurance.
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After market close on Wednesday, the carrier disclosed an estimated combined ratio of 109.1% for the quarter, adding 10 points year on year.
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For the same period in 2021, the company reported a combined ratio of 98.9%.
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Although 2022 was on balance, a good year, macro-economic issues such as a slowing economy, falling employment, and loss cost reversion could create an overhang for 2023.
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Personal lines insurers see a vastly different outlook in 2022 than 2021 and their reserve development reflects this.
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This price hike contributed to a premium increase of $695mn in the month, bringing the year-to-date impact of 2022 rate increases to $3.6bn.
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Inside P&C’s news team runs you through the key highlights of the week.
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In Texas, the company expects roughly 50% rate increases, whereas in California, the company received approval for a 6.9% increase.
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While Allstate may be beyond the worst of the reserve charges, execution of initiatives needs to go smoothly for it to get back on track.
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