Allstate Q1 2022 Earnings Report
Key Takeaways
Allstate reported a net income of $630 million and adjusted net income of $726 million ($2.58 per share). Premiums earned were $11.0 billion, an increase of 6.5% over the prior year. Excellent profitability in homeowners insurance, strong investment income and earnings from Protection Services and Health and Benefits mitigated the negative impact of inflation on auto insurance margins.
Allstate is addressing inflation by raising prices, reducing expenses and changing investment allocations.
Premiums earned were $11.0 billion, an increase of 6.5% over the prior year due to policy growth and increased average premiums.
Net income was $630 million and adjusted net income* was $726 million ($2.58 per share).
Customer access was expanded as Allstate agent new business sales were maintained while direct distribution grew to 38% of new business and National General expanded through independent agents.
Allstate
Allstate
Forward Guidance
Allstate is taking comprehensive action to improve profitability, including rate increases, reducing expenses and claims operational actions. Given ongoing inflationary pressures, we expect to implement rate increases greater than our initial expectations for 2022 to restore auto margins to target levels.