Allstate Claims Fall, Yet Profit Doubles
Posted on Jan 18, 2013
Raleigh injury lawyers at Brent Adams & Associates reviewed new data from Allstate. Allstate's 2012 Q4 profit doubled, even with the expenses associated with natural disastors and catastrophes.
With homeowners' properties destroyed by hurricanes, numerous car accidents and injuries, our Raleigh injury lawyers wanted to know: How did Allstate more than double their profit? Allstate's net income went from $296M to $724M, a significant jump. The way that Allstate, the largest publicly traded car and homeowners insurance provider in the country, was able to come so far ahead was by:
- Having a strong start to 2012. 2011 ended with a few storms and minimal weather-related damage.
- Lower travel numbers. With fewer cars on the road, less accidents occurred.
- Increased insurance rates. Executives decided to bump up insurance premiums to logically help improve profits.
- Finalized consumer-direct online acquisition. Allstate acquired Esurance to tap into the number of consumers who prefer to keep costs low and purchase policies online in lieu of an agency.