The insurer’s revenues rose 26 percent during the quarter, though saw an overall $1.4 billion loss.
In an Allstate Q1 revenue statement, the insurer reported that it saw a substantial 26 percent rise from its National General acquisition and premium gains.
This at the same time that the insurer dropped its life and annuity businesses leading to losses.
The insurance company experienced an overall $1.4 billion net loss as the Allstate Q1 revenue simultaneously took off. Comparatively, in the same quarter of 2020, it saw an overall $513 million net increase.
That said, its net income adjusted for excluding the subsidiary transactions was a much brighter $1.9 billion, which represents a 55 percent increase over the same quarter in 2020, which saw $1.2 billion. This was a reflection of a higher net investment income on top of a rise in underwriting income.
The Allstate Q1 revenue total came to $12.5 billion, up 26.2 percent compared to the same quarter in 2020.
This increase in revenues was mainly a reflection of the recent National General acquisition. That company was acquired in early January for $4 billion. Also contributing to the strong numbers was the boosted Protection Services premiums earnings and the net realized capital gains.
The outcomes were only strengthened by their net investment income, which came to $708 million, which was a massive $462 higher than the same figure from 2020.
“Our long-term approach to investing, reinsurance and building a digital insurer is creating shareholder value and positively impacted results this quarter,” said The Allstate Corp chair, president and CEO Tom Wilson.
Also announced with the Allstate Q1 revenue figures were the catastrophe losses for the quarter. They reached $1.67 billion, which was almost eight times higher than the same quarter last year. That said, those numbers were offset by subrogation and reinsurance recoveries totalling $1.08 billion. Overall, the brand net written premium saw a slight decline – mainly from lower average premiums due to approved rate reductions – but the new issued applications growth more than offset that decrease, occurring mainly in the direct channel. This was partially driven by an advertising boost.