Allstate Q1 Reports Higher Revenues Amid Elevated Catastrophic Losses and Auto Rate Increases

Allstate reported a 7.8% increase in first-quarter revenues to $16.5 billion, driven by underwriting income in its property-liability business, despite a decline in net income from $1.2 billion in Q1 2024 to $566 million.

Elevated catastrophic losses totaling $3.3 billion, primarily from California wildfires and severe weather across multiple regions, contributed to a higher combined ratio of 97.4 in property-liability, up 4.4 points year-over-year.

Auto insurance showed improved performance with a combined ratio of 91.3, 4.7 points better than last year, supported by rate increases and favorable loss cost trends, although auto policies in force fell slightly by 0.4% due to retention challenges despite a 31.2% increase in new business applications.