Allstate Reports Second Quarter Profit Driven by Increased Premiums and Investment Income, According to Reuters

Allstate Corp announced a profitable second quarter on Wednesday, attributed to increased premiums, improved investment returns, and reduced catastrophe losses. Unlike many financial firms affected by fluctuating economic conditions, insurers generally maintain more stable demand, largely due to the prevalence of employer-sponsored and government-mandated policies.

The company’s consolidated premiums written for the quarter reached $15.43 billion, marking a 12.4% increase compared to the previous year. Optimism surrounding a potential soft landing for the economy has further propelled markets to record highs in 2024, enhancing insurers’ investment income.

Allstate’s net investment income for the second quarter rose to $712 million from $610 million in the same period last year. Additionally, the company’s catastrophe losses decreased to $2.12 billion from $2.70 billion the year prior.

The Northbrook, Illinois-based firm reported a net profit of $301 million, or $1.13 per share, for the three months ending June 30, a significant recovery from a loss of $1.39 billion, or $5.29 per share, in the prior year.

Furthermore, Allstate’s underlying combined ratio improved to 85.3%, down from 92.9% a year ago. A ratio below 100% indicates that the company generated more in premiums than it disbursed in claims.