Allstate Announces November 2022 Implemented Auto Rates

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) announced significant auto insurance rate increases of 10.2% across 13 locations in November 2022 to combat rising inflation and loss costs. This move resulted in a total brand premium impact of 2.9%, contributing to a year-to-date premium increase of 15%, equating to $3.6 billion. Notably, estimated catastrophe losses remained below $150 million for the month. CFO Jess Merten emphasized the importance of these rate hikes in maintaining financial stability amidst rising costs.

Positive

• Implemented auto insurance rate increases of 10.2%, resulting in a premium impact of 2.9%.
• Year-to-date premium impact of 15%, totaling $3.6 billion.
• Estimated catastrophe losses below $150 million.

Negative

• None.

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

“Allstate continued to implement significant auto insurance rate actions in response to inflationary increases to loss costs. During the month of November, the Allstate brand implemented auto rate increases of 10.2% across 13 locations, resulting in total brand premium impact of 2.9%. Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 15.0%, generating increases of $695 million in the month of November and $3.6 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.

Allstate’s estimated catastrophe losses were below the $150 million reporting threshold for November 2022.

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/20221215005606/en/

Al Scott

Media Relations

(847) 402-5600

Mark Nogal

Investor Relations

(847) 402-2800

Source: The Allstate Corporation

FAQ

What auto insurance rate changes did Allstate announce for November 2022?

Allstate announced a 10.2% auto insurance rate increase across 13 locations.

How much did Allstate's rate increases impact premiums in 2022?

The total brand premium impact was 2.9%, with a year-to-date increase of 15%, equaling $3.6 billion.

What were Allstate's estimated catastrophe losses for November 2022?

Allstate's estimated catastrophe losses were below $150 million for November 2022.

Who is the CFO of Allstate?

The CFO of Allstate is Jess Merten.

What factors influenced Allstate's decision to raise auto insurance rates?

The rate increases were a response to inflationary pressures and rising loss costs.