Allstate

The company paid out $1.63bn for physical damage claims in the first nine months of the year, which exceeded earlier projections of $1.33bn.

The implemented price hikes added $307mn in new premium last month, driving the year-to-date rates implementation to $2.9bn.

Our Trump/Biden note from yesterday discussed the rotation from growth stocks to value stocks playing out over 2022. Unfortunately, insurance technology stocks have had it the worst, with Lemonade stock down 49%, but still doing relatively better than Root (down 86%) and Hippo (down 80%).

Amid record high economic inflation, continuing supply chain issues and proliferating nuclear verdicts, carrier CEOs have emphasized the need to keep rate above loss costs during Q3 conference calls.

Though still significantly elevated, the CPI appears to have peaked in the short term, which may give carriers a chance to catch up on rate.

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

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

The personal lines carrier expects to implement additional rate increases in the fourth quarter of this year, and into 2023.

Progressive’s superior digital distribution and widening auto margins put it far ahead of the competition.

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

CEO Tom Wilson added that Allstate is expanding its plans to reduce personal lines insurance in states with “unacceptable auto and home insurance margins”.

The firm disclosed that ex-cat unfavorable prior year reserve reestimates totaled $875mn, of which $643mn were related to its personal auto unit.