Allstate Announces August 2022 Implemented Auto Rates

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) announced significant auto insurance rate increases in August 2022, implementing an average hike of 14.5% across 8 locations, resulting in a total premium impact of 3.2%. Year-to-date, Allstate has executed 72 rate increases averaging 10.3% across 51 locations, leading to a total rate increase impact of $2.5 billion. In August alone, the increases contributed $777 million to premiums. These actions reflect Allstate's response to ongoing inflationary pressures in auto insurance severities.

Positive

• Implemented auto rate increases resulted in a $777 million premium impact for August 2022.
• Year-to-date auto rate increases totaled $2.5 billion, indicating strong revenue growth.

Negative

• Continued reliance on rate increases may signal underlying issues in managing costs amid inflation.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) today announced implemented auto rates for August 2022.

“Allstate continues to implement significant rate actions in the second half of 2022 in response to inflationary increases to auto insurance severities. During the month of August, the Allstate brand implemented rate increases of 14.5% across 8 locations, resulting in total Allstate brand insurance premium impact of 3.2%. We have implemented 72 rate increases averaging approximately 10.3% across 51 locations since the beginning of the year. Allstate brand implemented auto rate increases totaled $777 million in the month of August and $2.5 billion year-to-date,” said Jess Merten, Chief Financial Officer of The Allstate Corporation. Our implemented auto rate exhibit has been posted on allstateinvestors.com.

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements

This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220915005706/en/

Al Scott

Media Relations

(847) 402-5600

Mark Nogal

Investor Relations

(847) 402-2800

Source: The Allstate Corporation

FAQ

What are Allstate's auto insurance rate increases for August 2022?

Allstate implemented an average auto insurance rate increase of 14.5% across 8 locations in August 2022.

How much did Allstate's rate increases contribute to premiums year-to-date?

Year-to-date, Allstate's rate increases contributed $2.5 billion to premiums.

What financial impact did Allstate's August 2022 rate increases have?

In August 2022, Allstate's rate increases resulted in $777 million in total premium impact.

How many rate increases has Allstate implemented in 2022?

Allstate has implemented 72 rate increases averaging 10.3% across 51 locations since the beginning of 2022.