Allstate has secured regulatory approval to increase auto insurance rates in California, New York, and New Jersey.
CFO Jess Marten said the insurer will be implementing rate increases of 30%, 14.6%, and 20% in the respective states beginning December, with effective dates through February 2024.
These rates are expected to increase annualized written premiums by approximately $1 billion, according to Marten, building on Allstate’s ongoing plan to improve profitability.
Auto insurance rate increases initiated by Allstate since the beginning of the year have led to a premium impact of 11.4%, Marten said. As a result, the insurance giant is expecting annualized written premiums to grow by approximately $2.97 billion.
Meanwhile, the Allstate brand homeowners insurance saw a 10.1% increase, driving anticipated annualized written premiums up by approximately $1.03 billion.
Marten said this surge in implemented rate hikes, coupled with inflation in insured home replacement costs, led to a 12.6% upswing in homeowners insurance average gross written premium compared to the preceding year.
In addition to issuing updates on its implemented rates, Allstate announced that its estimated catastrophe losses remained below the $150 million reporting threshold for November.
The last time that Allstate reported its monthly catastrophe loss estimate was in October, when it revealed that its losses for September were projected to have sat at $317 million, or $250 million after tax.
This came after the insurer posted an adjusted net loss of $1.2 billion in its second quarter financials.
“Allstate will improve results while building an enhanced business model to better serve customers, generate attractive returns for shareholders and create opportunity for the Allstate team,” said CEO Tom Wilson back in August.
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