Allstate reports strong 2006 first quarter

Buoyed by improved underwriting numbers, Allstate Corp reported an “excellent start to 2006” with strong 2006 1Q results.
Allstate’s 1Q property liability premiums written grew 2.2% over the first quarter of 2005, driven by Allstate brand standard auto and homeowners increases of 4.1% and 2.4%, respectively. Excluding the cost of catastrophe reinsurance, premiums written grew 2.7% in the first quarter of 2006 compared to the first quarter of last year.
Property liability underwriting income increased US$261 million to US$1.24 billion, compared to US$981 million in the first quarter of 2005 driven by increased premiums earned, continued favorable auto and homeowners loss frequencies excluding catastrophes, and net favorable, prior-year reserve re-estimates.
“This is an excellent start to 2006, with net and operating income per diluted share up 33.5% and 20.4%, respectively, compared to the first quarter of 2005,” Edward M. Liddy, chairman and CEO of The Allstate Corporation, observed. “Underwriting income for our property liability unit was very strong at $1.24 billion, an increase of 26.6% compared to the first quarter of 2005, as positive trends in the frequency of claims in our auto and homeowners insurance lines continued.
“Though many states were affected by early spring storms, catastrophe losses were relatively light in the first quarter. Nonetheless, our national catastrophe team was rapidly deployed to several states in the southeastern part of the country to begin helping our customers put their lives back together following the recent severe weather that brought tornados, high winds and hail.”
Liddy noted the company has intentionally limited the amount of new property insurance business it is adding to its books, particularly in parts of New York, Texas, California and certain other states. The company is also reducing its existing catastrophe exposure in coastal New York and Florida, he said.