Winter storm batter Allstate's fourth quarter

NORTHBROOK - Allstate Corp. reported preliminary financial results for its fiscal year fourth quarter, with an estimated net loss between $285 million and $335 million.

Allstate said it continued to implement significant auto insurance rate increases in the second half of 2022 in response to increased loss costs.

A winter storm that blanketed large parts of the U.S. around Christmas accounted for approximately 80%, or $478 million, of its December estimated catastrophe insurance losses, Allstate said.

Premiums written increased 11.4% from fourth quarter of 2021 to $11.5 billion, driven primarily by higher average auto and home insurance premiums, the insurer said.

The personal auto insurance business included $410 million of reserve additions for the first three quarters of 2022, and $180 million of incurred prior year claims reserves. Personal auto insurance claim frequency continued to increase in the fourth quarter, but remains below 2019 levels, Allstate said.