Allstate Reports Declines in Auto Premiums and Policies

The Allstate Corporation on Monday released financial information reflecting activity for the second quarter of 2011, and the numbers show that one of the largest auto insurers in the country is still having trouble beefing up its total amount of written premiums and policies in force.

Compared with the same period last year, auto premiums were down 0.9 percent, and the amount of policies in force was down 0.6 percent.

While the declines in the premiums and policies categories were relatively small, they only add to the gradual downward trend that Allstate has seen in the past year and a half.

In the past six quarters, auto premiums posted year-to-year increases only twice, in the first and second quarters of 2010.

Allstate car insurance financial dataThe total numbers of policies in force have shown even worse results, with year-to-year declines every quarter for the past six quarters.

In a statement, Allstate said growth in the number of car insurance policies was hindered by “profit improvement actions” in New York and Florida.

The report also indicated that Allstate’s customers are chasing cheap car insurance premiums by cutting coverage levels. As a result, the average gross premiumwas down 0.5 percent compared to the same period last year.

According to data made available by the National Association of Insurance Commissioners, Allstate had the second largest share of the American private passenger auto insurance market in 2010. It accounted for a little more than 10 percent of the market, with nearly $17 billion in premiums.

Allstate executives said that the company has maintained a healthy level of profitability, but the effects of this year’s severe storms were clearly apparent in the report.

Catastrophe losses came in at about $2.34 billion for the past three months. That’s a whopping 268 percent higher than catastrophe losses incurred during the same period last year.

 

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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