Allstate
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Personal auto carriers lowered rates in response to 2020’s loss cost trends, but chasing market share now could be a mistake. -
New CEOs were not able to consistently create higher book value growth than their predecessors, and any growth achieved wasn’t maintained after five years.
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The personal lines giant announced a $300mn deal last night to buy non-standard auto writer SafeAuto.
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Activist investor Carl Icahn now owns $400mn of Allstate shares.
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Continued capital depletion could result in additional pressure on management teams with regard to executing their original business plans.
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The monthly tally came in 14% lower than the $632mn reported a year ago.
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Any faster-than-anticipated re-opening could have a negative impact on loss cost trends.
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Allstate will keep the brand going while putting advertising dollars behind its core direct business.
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Net investment income surged more than threefold to $673mn.
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Reinsurance recoveries and subrogation payouts helped to minimize retained cat losses to $466mn, post-tax.
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The next few years could prove to be more active in consolidation than normal for underwriters.
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On a forward basis, frequency estimates could look high with base figures in 2020 being significantly impacted by initial lockdown measures.
