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Q3 combined ratio improves 2.1 points for Allstate


February 6, 2017   by Canadian Underwriter


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The Allstate Corp. has released its financial results for 2016, reporting catastrophe losses of $2.572 billion for the calendar year, up 49.6% from $1.719 billion in 2015. All figures are in United States dollars.

The combined ratio for Northbrook, Ill.-based Allstate was 96.1% for 2016, up 1.2 points from 94.9% in 2015. The combined ratio for the most recent quarter was 89.9%, down 2.1 points from 92% in the three months ending Dec. 31, 2015.

Catastrophe losses were $303 million in Q4 2016, down 15.3% from $358 million in Q4 2015.

Property-liability insurance premiums were $31.1 billion in 2016, up 2.3% from $30.31 billion in 2015. In the latest quarter, Allstate reported property-liability insurance premiums of $7.9 billion, up 2.8% from $7.684 billion in the last three months of 2015.

Net income dropped 13.5% from $2.171 billion in 2015 to $1.877 billion last year. For the fourth quarter, net income climbed from $489 million in 2015 to $840 million in 2016.

In 2016, Allstate reported 86 catastrophe events. There were two events with claims and claims expenses of more than $250 million each, with a grant total of $629 million. Another two events – costing between $101 million and $250- million each – resulted in $330 million claims and claims expenses. Eight events cost between $50 million and 100 million each, with a grand total of $591 million. A further 74 events had less than $50 million each in claims and claims expenses, with a grand total of $1.016 billion.

For the last quarter of 2016, the costliest catastrophe had $140 million in claims and claims expenses while another cost $72 million. Another 10 events had less than $50 million each in claims and claims expenses, with a combined total of $82 million.

Asbestos reserves were $912 million as of Dec. 31, 2016, down $48 million from $960 million at the end of 2015. Incurred claims and claims expenses were $67 million while claims and expenses paid were $115 million. Environmental reserves were $179 million at the end of 2016, unchanged from Dec. 31, 2015.

Within Allstate Protection Auto Insurance, the combined ratio was 99.2% in 2016, down 0.7 points from 99.9% in 2015. In Allstate Protection Homeowners Insurance, the underlying combined ratio was 85.2% in 2016, up 5.3 points from 79.9 in 20-15.