Allstate hikes some rates as revenue slumps

Allstate Corp., the largest publicly traded home and auto insurer, is increasing home insurance rates in Texas, after the company's premium revenue declined.

The insurer raised rates 5.4 percent for Allstate Texas Lloyd's customers and 9.7 percent for Allstate Fire and Casualty Insurance Co. clients, according to filings with the Texas Department of Insurance last month. The units provide coverage for about 625,000 homeowners in Texas, the second-largest state by population, said Kristen Beaman, a spokeswoman for the company in Irving, Texas. The rate increases were reported earlier today by the Dallas Morning News.

Property-liability premium revenue for Northbrook-based Allstate slumped to $6.5 billion in the quarter ended Sept. 30 from $6.54 billion a year earlier. Some of the lost business was in large states, Chief Executive Officer Thomas Wilson said in an Oct. 28 conference call with analysts.

“Homeowners profitability remains a concern, though progress is being made as our rate actions work into the numbers,” said Wilson.

The premium increases in Texas were needed because of rising costs to repair homes after severe weather, such as hailstorms and windstorms, Beaman said. The state's insurance department has the right to reject the increases if they are determined to be excessive, said Jerry Hagins, a spokesman for the regulator.