ALLSTATE BEATS ON UNDERWRITING AND EARNED INVESTMENT GAINS

Allstate saw its fourth-quarter net earnings jump 52% to $2.60bn, reflecting improved underwriting results and a $502m, 73% increase in earned investment income. Adjusted income per share rose to $5.87 from $3.13 and easily beat analysts’ estimate of $3.82. The combined ratio improved by 4.7 points to 84% as underwriting income jumped 42% to $1.42bn on a pandemic-driven decline in motor accidents and strong homeowners results. Catastrophe losses for the period jumped 44% to $424m. Property/casualty premiums grew almost 1% to $9.28bn. For all of 2020, the Illinois-based group’s net income rose 16.7% to $5.46bn as p/c underwriting income grew 58% to $4.42bn. The 2020 combined ratio improved by 4.4 points, while p/c premiums grew 2.8% to $37.07bn.