Posted on 03 May 2013 by Neilson
Allstate Corp. posted a first-quarter net income of $709 million, which is a 7.4% drop from the prior-year period, because of higher catastrophe losses, the company said in a written statement released after the market closed.
The company's first-quarter cat losses were $359 million, a 38.6% increase from the previous first quarter. Allstate had previously announced its expected catastrophe losses, which stemmed from nine cat events in the first quarter.
"Allstate agency premium growth was the result of slightly higher prices, progress in new business unit growth and improved customer retention in Allstate brand standard auto," Allstate Chief Executive Officer Thomas J. Wilson said in a written statement. "Esurance had another strong quarter with policies in force up 36% over the prior year."
Despite the growth in policies in force, Esurance recorded a combined ratio for the quarter of 116.7. Allstate's overall property-liability combined ratio for the quarter was 93.2, which is 1.1 higher than the previous period. Net investment income was $983 million in the quarter, down from $1 billion a year ago.