Allstate

After market close on Wednesday, the carrier disclosed an estimated combined ratio of 109.1% for the quarter, adding 10 points year on year.

For the same period in 2021, the company reported a combined ratio of 98.9%.

Although 2022 was on balance, a good year, macro-economic issues such as a slowing economy, falling employment, and loss cost reversion could create an overhang for 2023.

Personal lines insurers see a vastly different outlook in 2022 than 2021 and their reserve development reflects this.

This price hike contributed to a premium increase of $695mn in the month, bringing the year-to-date impact of 2022 rate increases to $3.6bn.

Inside P&C’s news team runs you through the key highlights of the week.

In Texas, the company expects roughly 50% rate increases, whereas in California, the company received approval for a 6.9% increase.

While Allstate may be beyond the worst of the reserve charges, execution of initiatives needs to go smoothly for it to get back on track.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

The company paid out $1.63bn for physical damage claims in the first nine months of the year, which exceeded earlier projections of $1.33bn.

The implemented price hikes added $307mn in new premium last month, driving the year-to-date rates implementation to $2.9bn.

Our Trump/Biden note from yesterday discussed the rotation from growth stocks to value stocks playing out over 2022. Unfortunately, insurance technology stocks have had it the worst, with Lemonade stock down 49%, but still doing relatively better than Root (down 86%) and Hippo (down 80%).