Allstate

Inside P&C’s morning summary of the key stories to get you up to speed fast.

The firm recorded a $282mn reserve charge in the quarter, of which $180mn was related to an increase in personal auto claim frequency attributable to prior accident years.

Five auto insurers receive approval to raise rates after 32-month halt by the California Department of Insurance.

After market close on Wednesday, the carrier disclosed an estimated combined ratio of 109.1% for the quarter, adding 10 points year on year.

For the same period in 2021, the company reported a combined ratio of 98.9%.

Although 2022 was on balance, a good year, macro-economic issues such as a slowing economy, falling employment, and loss cost reversion could create an overhang for 2023.

Personal lines insurers see a vastly different outlook in 2022 than 2021 and their reserve development reflects this.

This price hike contributed to a premium increase of $695mn in the month, bringing the year-to-date impact of 2022 rate increases to $3.6bn.

Inside P&C’s news team runs you through the key highlights of the week.

In Texas, the company expects roughly 50% rate increases, whereas in California, the company received approval for a 6.9% increase.

While Allstate may be beyond the worst of the reserve charges, execution of initiatives needs to go smoothly for it to get back on track.

Inside P&C’s morning summary of the key stories to get you up to speed fast.