Allstate

MGAs outpaced the P&C industry for years, but growth has begun to stagnate.

Changes in investment strategy and strong results show carriers can weather financial storms.

This takes pre-tax cat losses for the calendar year to $1.23bn

This follows February’s cat losses coming in below the $150mn reporting threshold.

This follows January pre-tax cat losses of $276mn.

Two events comprised approximately 80% of the losses.

The carrier expects to "get smaller in New Jersey" due to lack of rate adequacy.

Insurance Insider US runs you through the earnings results for the day.

Unfavorable prior year reserve re-estimates, excluding catastrophes, totaled $199mn in Q4, with approximately $148mn related to personal auto, including costs for litigation claims.

For the month of November, Allstate brand’s auto rate increases totaled $262mn, after implementing $517mn and $1.49bn of rate increases in Q3 and Q2, respectively.

Personal auto carriers risk falling behind in the battle between loss costs and approved rate declines, while homeowners carriers’ double-digit filings might not be enough to keep up.

Reciprocals have been cropping up more recently, with a shift toward cat-exposed lines, giving investors a quick way to tap into the hard market with an expectation of a rich multiple at exit.