Allstate Insurance Gets Fourth-Quarter Boost in Profits

Allstate 2009-11 incomeCar insurance provider Allstate saw profits jump 340 percent between the third and fourth quarters of 2011, a development that’s being largely attributed to the absence of the types of natural disasters in the fourth quarter that wreaked havoc in the third.

The amount of catastrophic losses suffered by the company plummeted 94 percent between the third and fourth quarters, dropping from $1.08 billion down to $66 million. Insurance companies generally consider catastrophic losses to be events that cause $25 million or more in insured losses.

Allstate’s fourth quarter profits were $724 million, which is up considerably from the $165 million in third-quarter profits and the $296 million in profits the company reaped in the fourth quarter of 2010.

But the catastrophic weather events still took their toll on the year-end numbers.

Between 2010 and 2011, yearly profits for the insurer dropped 15 percent, to $788 million.

That reverses the trend seen between 2009 and 2010, when the company saw an increase in yearly profits of 8.7 percent.

Allstate remains one of the top rated auto insurance companies in the country. As of March 2011, it had the second-largest share of the private passenger coverage market with nearly $17 billion in premiums written–a 10.2 percent market share.

State Farm is the only car insurer with a larger share of the market.

While the industry saw gargantuan losses from tornadoes in the Midwest, storms on the East Coast and wind storms on the West Coast last year, many experts say the industry is on the road to recovery.

To read the experiences of current and former Allstate policyholders, readers can find user-submitted Allstate auto insurance reviews online.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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