Allstate get the Downgrade - for Personal Auto Underwriting

[marindependent]

"Citing declines in statutory capital and poor underwriting results in personal auto, Fitch Ratings has downgraded the insurer financial strength ratings of Allstate P/C insurance subsidiaries to “A” (Strong) from “A+.”"

WoW- I wonder how many more of these there are out there? First of many? Or a one time thing?

"Fitch noted a sharp deterioration in Allstate’s underwriting results in recent periods, with a property/liability calendar-year combined ratio of 106.6 in 2022, compared to a prior five-year average of 92.3. The decrease was primarily related to an auto combined ratio of 110.1. Allstate’s underwriting results continued to be challenged in first-quarter 2023 with a combined ratio of 108.6, leading to a GAAP net loss of $346 million."

Article here: Fitch Downgrades Allstate

 

[scagnt83]

"Citing declines in statutory capital and poor underwriting results in personal auto, Fitch Ratings has downgraded the insurer financial strength ratings of Allstate P/C insurance subsidiaries to “A” (Strong) from “A+.”"

WoW- I wonder how many more of these there are out there? First of many? Or a one time thing?

"Fitch noted a sharp deterioration in Allstate’s underwriting results in recent periods, with a property/liability calendar-year combined ratio of 106.6 in 2022, compared to a prior five-year average of 92.3. The decrease was primarily related to an auto combined ratio of 110.1. Allstate’s underwriting results continued to be challenged in first-quarter 2023 with a combined ratio of 108.6, leading to a GAAP net loss of $346 million."

Article here: Fitch Downgrades Allstate

As a life/health/annuity agent, it surprises me that Allstate and StateFarm have such low home/auto rates, yet such high ratings.

I recently shopped P&C insurance and switched to SF. It was even lower than Allstate... who was even lower than Progressive/Geico/Farmers/Travelers/Nationwide/etc.

Years ago, it was the opposite. SF had the highest rates when I shopped carriers. Now that could be my personal UW situation. But I dont think Im in that much of a different situation now as I was then, just older and a bit more established. I actually had a better credit score back then than when I recently applied.

So, it seems to me, that SF & Allstate might just be "buying business" for the sake of revenue coming through the door. That is a life agents pov on it, not sure how much water it holds in P&C land. But really well rated carriers having the lowest rates in the life world lead to situations like Ohio National demutualizing and pulling the rug on policy holders.

thoughts?