Allstate earnings jump 16% in Q2

US personal lines insurer Allstate Corporation has increased net income by 15.8 percent year on year in the second quarter of 2018.

Net income grew to $637 million in the second quarter of 2018 from $550 million a year ago, driven by higher premiums earned, lower catastrophe losses, higher favourable prior year reserve releases and a lower US tax rate.

Revenues increased 2.9 percent year on year to $10.10 billion in the second quarter of 2018, reflecting higher average premiums and increased policies in force. Catastrophe losses declined 8.8 percent year on year to $906 million over the period. The property-liability combined ratio improved to 94.9 percent in the second quarter from 96.6 percent.

“Allstate’s businesses continue to deliver excellent results, growth is accelerating and we are on pace to achieve 2018’s operating priorities,” said CEO Tom Wilson. “We are improving our underlying combined ratio outlook range by one point to 85 to 87 percent for the full year 2018,” he added.

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