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From the Insurance Journal:
Due to rising trends in the frequency and severity of weather-related losses and in inflation, some insurers have elected to either pull away from some geographies or leave the homeowners business entirely. Allstate said during a recent earnings call that it is ready to step in where margins are good.
Rizzo said Allstate homeowners insurance net written premiums increased almost 11% and policies-in-force grew 2.5% during the third quarter, and the business turned in a 98.2 combined ratio with $60 million of underwriting income compared to a loss of $131 million for the third quarter last year.
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“We do think there is more growth potential there,” Wilson said during the call. “Some of that is many people have decided not to grow in homeowners. And that gives us more opportunity, not just through Allstate agents, but in particular through independent agents. And I think we should be able to crack the code on direct.”
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However, Allstate won’t be looking for homeowners market share in Florida and California and the insurers will “continue to manage PML (probable maximum loss) and coastal exposure.”
“But once you get away from that – really the rest of the county, particularly the middle part of the country – there’s real opportunity for us to continue to grow homeowners,” Rizzo said. “I think that is where our our capabilities from a product, pricing, and risk management perspective really enable us to take advantage of the disruption in the market and grow pretty broadly, geographically.”
Allstate Says It’s Ready to Grow Homeowners Line With All 3 Distribution Channels
Allstate said it sees opportunity where others may not — in homeowners insurance. And the insurer plans to use all three distribution channels to do it.Due to rising trends in the frequency and severity of weather-related losses and in inflation, some insurers have elected to either pull away from some geographies or leave the homeowners business entirely. Allstate said during a recent earnings call that it is ready to step in where margins are good.
Rizzo said Allstate homeowners insurance net written premiums increased almost 11% and policies-in-force grew 2.5% during the third quarter, and the business turned in a 98.2 combined ratio with $60 million of underwriting income compared to a loss of $131 million for the third quarter last year.
....
“We do think there is more growth potential there,” Wilson said during the call. “Some of that is many people have decided not to grow in homeowners. And that gives us more opportunity, not just through Allstate agents, but in particular through independent agents. And I think we should be able to crack the code on direct.”
....
However, Allstate won’t be looking for homeowners market share in Florida and California and the insurers will “continue to manage PML (probable maximum loss) and coastal exposure.”
“But once you get away from that – really the rest of the county, particularly the middle part of the country – there’s real opportunity for us to continue to grow homeowners,” Rizzo said. “I think that is where our our capabilities from a product, pricing, and risk management perspective really enable us to take advantage of the disruption in the market and grow pretty broadly, geographically.”
