Allstate raised auto, homeowner insurance rates by more than 7% this year to 'improve profitability'

Allstate Corp. (ALL) announced Thursday June catastrophe losses of more than $1 billion, and said it has raised premiums on home and auto insurance "to improve profitability." The company said catastrophe losses were estimated to be $1.01 billion in June, and $2.70 billion for the second quarter. The losses for June include 18 "events," with about 60% of the losses related to four wind and hail events. "Allstate continued to implement significant auto and homeowners insurance rate actions as part of our comprehensive plan to improve profitability," said Chief Financial Officer Jess Merten. For June, the company said it raised auto rates by 11.6% across 12 locations, resulting in a total brand premium increase of 2.6%. So far this year, auto insurance rates have increased 7.5% and homeowners insurance rates have increased 7.4%, which are expected to boost annualized written premiums by about $754 million. Allstate's stock, which slipped 0.2% premarket, has tumbled 22.0% year to date through Wednesday, while the SPDR S&P Insurance exchange-traded fund (KIE) has gained 2.0% and the S&P 500 has advanced 18.9%.

-Tomi Kilgore

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07-20-23 0828ET

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