(Reuters) – Allstate Corp reported a second quarter profit on Wednesday, driven by higher premiums, better returns from investments, and lower catastrophe losses.
Insurers usually escape an erratic product demand that other financial companies face due to changes in the economic landscape, mainly due to the widespread adoption of employer-sponsored and government-mandated policies.
The company’s consolidated premiums written for the quarter were at $15.43 billion, a 12.4% jump compared to last year.
Hopes of a soft landing for the economy have also boosted markets, which have hit record highs in 2024, increasing insurers’ income from investments.
Allstate’s net investment income in the second quarter jumped to $712 million from $610 million a year earlier.
Meanwhile, the company’s catastrophe losses fell to $2.12 billion from $2.70 billion a year earlier.
Allstate reported a net profit of $301 million or $1.13 per share, in the three months ended June 30, compared to a loss of $1.39 billion or $5.29 per share last year.
The Northbrook, Illinois-based company posted an underlying combined ratio of 85.3%, compared to 92.9% a year earlier. A ratio below 100% means the insurer earned more in premiums than it paid out in claims.
(Reporting by Pritam Biswas and Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid)
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