Allstate Corp. fourth quarter net income applicable to common shareholders increased 30% to about $1.9 billion, and the insurer finished 2024 with net income of $4.6 billion compared to a loss of $316 million the prior year.
Results for the last quarter 2024 were made despite $410 million in catastrophe losses. The Northbrook, Illinois-based insurer recorded an improvement in its property-liability fourth quarter combined ratio – 86.9 from 89.5 the prior year.
The homeowners business recorded catastrophe losses of $315 million in the quarter – $294 million more than the prior-year quarter. Most of the losses can be attributed to Hurricanes Milton, a fourth-quarter event, and reestimates for third quarter’s Hurricane Helene, said Allstate.
Underwriting income in the homeowners segment was $1.1 billion in Q4, down 8.5% from Q4 2023. Catastrophe losses were reflected in a 7.8 increase in the line’s 69.8 combined ratio for Q4. For the year, Allstate homeowners reversed a $803 million underwriting loss in 2023 to post a gain of about $1.3 billion in 2024.
Premiums written for the homeowners segment were up 15.3% for Q4 and up 14.6% for 2024.
On January’s wildfires in California, CEO Tom Wilson said pretax losses are expected to be about $1.1 billion net of reinsurance, “reflecting a decision to reduce market share beginning in 2007, and a comprehensive reinsurance program.”
In Allstate’s auto segment, the Q4 combined ratio came in at 93.5, a 5.4-point improvement over Q4 2023, on higher earned premiums (up 9.1% in Q4 and 10.7% for the full year). Also, Allstate recorded $35 million favorable prior-year reserves in the fourth quarter.
“Total property-liability policies in force are expected to grow in 2025 as auto insurance policy renewal rates improve and new business continues to increase,” Wilson said, in a statement.
Topics
Catastrophe
Natural Disasters
Trends
Profit Loss
Hurricane
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