Allstate

Yesterday, National General discussed Q1 results which included operating EPS of $0.91, up 18.2% YoY, and a headline combined ratio of 87.8% compared with 89% last year.

Kemper today become the latest carrier to announce a partial refund for customers.

Yesterday, Allstate and American Family announced a plan to partially refund personal auto premiums. We expect these to be the opening bids in a protracted battle with regulators.

The carrier will hand $600mn in premiums back to auto customers to reflect the decline in driving due to the Covid-19 crisis.

The S&P 500 insurance industry index rose by 2.8 percent as lawmakers neared a vote on a coronavirus economic relief package.

Allstate shares shrink 5.3 percent, while Axis shares lose almost 5 percent of their market value.

The carrier said claims would be partially offset by favourable prior year development.

Allstate’s growth strategy involves merging its Esurance and Encompass brands into Allstate’s.

Key takeaways include continued benign frequency and long-term ROE guidance ranges from 14-17 percent.

The American insurer also takes a $51mn pre-tax charge from the phase-out of its Esurance brand.

The brand’s retirement slated for next year is emblematic of a broader shift in InsurTech.

Losses arise from four events plus reserve re-estimates.