Auto Insurance

Q2/Q1 calls highlighted sequential improvement in combined ratio (95.9 in Q2, 96 in Q1) and rate adequacy progress. " " "

Plan completion restored margins; combined ratio at 94.8; 60% increase in ads shows confidence. " "

Sentiment remains bullish, with consistent improvements and fewer upcoming rate hikes.

Homeowners Insurance

Q2/Q1 called out improved profitability (111.5% CR in Q2 vs. bigger losses before) and continued growth even in a hard market. Q4 also showed solid pricing and stable expansion. " " "

Combined ratio 98.2, up $60M underwriting income; seeing it as a growth opportunity amid market disruption. " " "

Sentiment continues positive, leveraging bundling and a shift toward less catastrophe-prone regions.

Advertising & Marketing ROI

Q2/Q1 recognized significant ad spend linked to strategic targeting and AI-driven optimization. Q4 noted planned ad increases in rate-adequate states. " " " "

60% ad spend increase vs. 2021; long-term strategy, not all spend recouped immediately, but focus on upper/lower funnel metrics. " " "

Consistent strategic investment view; advertising remains a key lever for growth, with a focus on precision and long-term returns.

National General

Previous calls (Q2/Q1/Q4) emphasized expansion in nonstandard auto, strong IA presence, Custom360 product rollout, and doubling size since acquisition. " " "

Acquisition remains highly successful; now “twice its size,” driving nonstandard auto and IA channel growth. " " "

Still strongly bullish, integral to Allstate’s multi-channel strategy and nonstandard market share.

Retention & Rate Increases

Q2/Q1/Q4 also noted retention pressure in key states due to large rate actions. Declines partly offset by improved rate adequacy and stable renewal trends in other regions. " " "

2.7-point decline in retention over last 10 quarters; 40% of that from CA/NY/NJ rate hikes; fewer future hikes expected. " " " " "

Sentiment improving as needed rates appear more stable, with an expected boost to retention once rate increases moderate.

Capital & Share Repurchases

Q1/Q4 stressed capital sufficiency and willingness to deploy funds into growth vs. buybacks; Q2 contained no mention. " " "

Reiterated organic growth priority over share buybacks; points to $42B total repurchases since going public but sees higher returns in growth. "

Sentiment neutral-to-positive: sustaining a strong capital base while favoring business reinvestment over near-term repurchases.

Expense & Claims Handling

Q2/Q1/Q4 mentioned digital efficiencies, offshoring, and improved operational execution to manage inflation while maintaining quality claims handling. " " "

No direct cuts to claims staff; focus on improving claims capabilities and customer satisfaction alongside expense discipline. " "

Continues balanced: cutting costs while avoiding harmful impact on claims.

DOJ Lawsuit

Q2 call briefly addressed a DOJ lawsuit related to lender-placed insurance, asserting transparency and no ongoing business impact; Q1/Q4 had no mention. "

No mention of lender-placed insurance/DOJ litigation in Q3.

Topic not discussed this period; no new sentiment or updates.

Health & Benefits Divestiture

Q2/Q1/Q4 described intention to divest entire Health & Benefits segment, citing robust buyer interest and plan to free capital for core businesses. " " "

Selling EVB to StanCorp for $2B; expects a $600M gain and $1.6B capital from the deal in H1 2025. " "

Still bullish on monetizing noncore business to redeploy capital.

Bundling & Agent Productivity

Q2/Q1/Q4 also highlighted historically high bundling, agent incentives, and reduced distribution costs. Bundling strongly linked to lower churn and higher LTV. " " "

Bundling rates at all-time highs, up to 16% new business growth in agency channel; rebuilt commissions to emphasize new sales. " " "

Positive momentum, seeing bundling as a key strategic driver of lifetime value and agent performance.

Bodily Injury & Frequency

Q2/Q1/Q4 consistently flagged rising severity and gradual shifts in frequency, with bodily injury severity outpacing broader inflation. " " " "

Bodily injury severity above inflation; frequency lower, partially offsetting severity cost pressure. "

Sentiment cautious but stable; ongoing severity risk remains a watch point.

Catastrophe Exposure

Q2/Q1/Q4 each had elevated cat losses but showed improvements vs. prior years, using reinsurance and pricing in homeowner lines for risk management. " " "

$1.7B cat losses in Q3; focusing growth away from cat-prone states; leveraging reinsurance. " " "

Continues cautious approach, balancing exposure with targeted expansion in lower-risk areas.