Allstate reports Property-Liability combined ratio of 93.7 for Q1 2015

The Allstate Corporation, the United States’ largest publicly held personal lines insurer providing auto, home, life and other types of insurance to customers in the U.S. and Canada, reported a Property-Liability combined ratio of 93.7 in the first quarter of 2015, one point favorable to the prior year quarter. This resulted in underwriting income of US$467 million, an increase of 25.5% compared to the prior year quarter.

“Auto losses were elevated in the first quarter, reflecting seasonal winter weather and higher non-weather levels of frequency and severity in all three brands where we underwrite risk,” Allstate said in a press release.

Still, the “Allstate brand had good growth and returns in auto, home and other lines of insurance,” said Thomas J. Wilson, chairman and CEO of The Allstate Corporation, in the release. “The strength of homeowners’ returns, including low catastrophe losses, more than offset the impact of increased economic activity on auto margins which is being factored into our pricing. Overall, it was a good start to 2015.”

Allstate brand auto had a Q1 2015 combined ratio of 96.8 and an underlying combined ratio of 95.6, which was 1.8 points unfavorable to the prior year quarter. Allstate brand bodily injury frequency increased 6.8% from low levels in the first quarter of 2014. “Property damage frequency increased 2.1%, and was impacted in part by adverse winter weather experienced predominantly in the east, as well as higher frequency trends broadly across the country,” the release noted. [click image below to enlarge]

From an Allstate brand homeowners perspective, “margins were excellent, with strong results during a quarter with moderate levels of catastrophe losses.” The first quarter 2015 recorded combined ratio for Allstate brand homeowners was 78.7, resulting in $348 million in underwriting income, the release said. The underlying combined ratio of 64.5 was 1.3 points better than the first quarter of 2014. Allstate brand other personal lines also had a strong first quarter, recording a combined ratio of 89.3, and an underlying combined ratio of 82.1.

Allstate Financial generated US$134 million in operating income in the first quarter of 2015, US$21 million lower than the prior year quarter after adjusting 2014’s first quarter results for the disposition of Lincoln Benefit Life Company.

Other financial results include:

• Allstate brand auto policies were 623,000, or 3.2%, higher in the first quarter of 2015 than the same quarter a year ago;

• Allstate brand homeowner policies increased 51,000, or 0.8% in the first quarter of 2015 compared to the prior year quarter; and

• Allstate brand other personal lines increased by 103,000 policies in the first quarter of 2015, 2.6% higher than the prior year quarter, “reflecting increased household penetration.”