Auto Insurance Houston
English Insurance Carriers

Allstate Corp. reported that its profit more than doubled in the fourth quarter thanks to lower catastrophe losses and improved homeowners business. The big insurance company posted a fourth quarter net profit of $724 million compared to a fourth quarter profit of $296 million a year earlier. However, for the full year 2011, the company said net income was $788 million, which is 15 percent below 2010, reflecting the high catastrophe losses of previous quarters.

Operating income increased to $750 million in the fourth quarter, a $479 million increase from prior year due to substantially lower catastrophe losses. Allstate said catastrophe losses totaled $66 million in the last quarter — way below cat losses of $537 million in the same period last year. Allstate has been pushing for rate hikes on its automobile and homeowners policies while also cutting back on writing business in difficult markets including Florida and New York. The higher premiums in homeowners helped offset a decline in policies.

Allstate completed the acquisition of online distributors Esurance and Answer Financial in October. The company said this acquisition increased insurance premiums earned in the quarter, but the insurer continued to experience reductions policy counts due to its pricing and underwriting restrictions in auto insurance in New York and Florida and homeowners insurance in catastrophe-prone markets.

The combined ratio for the 2011 fourth quarter was 90.5, or 1.5 points better than in the prior year’s fourth quarter. The combined ratio for 2011 of 89.3 was within the outlook established at the beginning of the year of 88 to 91. Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corp., said the company expects its combined ratio for 2012 to be between 88 to 91 as it he expects improvements in auto insurance in New York and Florida and homeowners returns to bee offset by investments in growth, particularly in the Esurance brand.

Total operating income for all of 2011 was $689 million compared to $1.5 billion, in 2010. With the decline attributable to the substantial rise in catastrophe losses experienced in 2011 compared to 2010. Property/casualty net premium written for 2011 was $26 billion, slightly higher than in 2010 and includes the results for Esurance following the close of that acquisition in early October. For the fourth quarter 2011, net written premium was $6.4 billion, an increase of 2.9 percent over the same period a year ago driven primarily by the inclusion of Esurance results for the fourth quarter of 2011. 

ABC Insurance Services, for a free insurance quote call 800-374-9227

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
 Footer
  Personal Insurance
Auto Insurance Houston
Home Insurance Houston
Condo Insurance Houston
Renters Insurance Houston
Motorcycle Insurance
Boat Insurance Houston
Flood Insurance Houston
Health Insurance
Life Insurance
Texas SR-22 Insurance
Texas RV Insurance
Texas Umbrella Insurance
Commercial Insurance
Commercial Auto Insurance
General Liability Insurance
Commercial Property Insurance
Tenant Liability Insurance
Landlord Risk Insurance
Texas Workers Compensation Insurance
Texas Garage Liability Insurance
Texas Auto Dealer Insurance

Surety & Fidelity Bonds
Auto Dealer Bond
Auto Title Bond
Dishonesty Bond
Tax Bond
TABC Liquor Bond
License & Permit Bond 
Links
HAR.com
HCAD.org
Bankrate.com
DMV.org
Texas.gov 
 

© 2010 ABC Insurance Services Inc, All rights reserved.
8811 Westheimer Ste 211, Houston, Texas 77063 | (Phone) 800-374-9227 | (Fax) 713-785-2711

Free Houston Texas Insurance Quotes
 Privacy Policy