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Insurance carriers Q1 2021 earnings call round-up

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Despite having to manage the several weather-related catastrophes that struck during the first quarter, most insurance carriers started 2021 strong. Here’s a quick roundup of key takeaways from carriers’ Q1 2021 earnings calls.

Allstate

 

Allstate’s policies-in-force in its P&C business segment grew by 12.1% during Q1, mainly due to the National General deal in January 2021 which contributed 3.9 million policies.  Cat losses saw a huge jump primarily because of the carriers’ exposure to damages incurred by policyholders during the recent severe winter storms in the southern states and were offset by reinsurance and subrogation recoveries. Allstate also enacted significant auto rate cuts in January and February across four states, which could reduce premium income of at least $54 million. 

Read the full earnings release.

 


 

Key Numbers

  • Quarterly adjusted net income of $1.9 billion, or $6.11 per diluted share 
  • Cat losses of $590 million, up 180% from the previous year quarter 
  • Consolidated combined ratio of 83.3
  • Quarterly total revenue of $12.5 billion, up 26.2% from the previous year quarter
  • Net written premiums of $8.4 billion, up 0.6% from the previous year quarter 
  • Quarterly net investment income of $708 million

Chubb

 

Although Chubb failed to acquire The Hartford this quarter, the chairman and chief executive stressed that Chubb has many options and that the deal would not distract the company from continuing to grow. The company has made 17 acquisitions over the past 15 years and stated that it had an excellent track record of advancing in the company’s capabilities while still creating shareholder value. 

Read the full earnings release.

 


 

Key Numbers

  • Quarterly net income of $2.3 billion
  • Quarterly net premiums written of $8 billion, up 9,7% from the previous year quarter 
  • Quarterly pre-tax P/C catastrophe losses of $700 million 
  • Quarterly P/C combined ratio of 91.8, up .3 points from the previous year quarter

Erie Insurance

 

Net income per diluted share at Erie Insurance was up 24% for the quarter compared to the previous year quarter. The carrier also stated that the uncertainty from COVID-19 has continued to evolve and affect the company’s earnings. 

Read the full earnings release.

 


 

Key Numbers

  • Quarterly net income of $73.6 million, or $1.41 per diluted share
  • Quarterly operating income of $76.095 million, down 11.2% from the previous year quarter

Hanover Insurance Group

 

The Hanover’s CEO stated that the carrier exceeded the company’s original first-quarter expectations and demonstrated its ability to capitalize on attractive market opportunities in a dynamic environment.

Although the company went above the expense ratio compared to the first quarter of 2020, executive vice president Jeffrey M. Farber stated the company was on track to deliver a 30-basis point improvement in 2021. 

Read the full earnings release.

 

 

 


 

Key Numbers

  • Quarterly net income of $92.7 million, or $2.51 per diluted share 
  • Quarterly operating income of $61.4 million, or $1.66 per diluted share
  • Quarterly net written premiums of 1.196 billion, up 5.3% from the previous year quarter 
  • Quarterly combined ratio of 98.8, up 3.6 points from the previous year quarter
  • Quarterly catastrophe losses of $133.3 million, or 11.5% of net premiums earned 
  • Rate increases of 6.1% in core commercial lines and 3.1% in personal lines

The Hartford

 

Reported results from The Hartford include the impact from a $650 million settlement with the Boy Scouts of America, $214 million in pre-tax net catastrophe from the winter storms, and $185 million in COVID-19 related excess mortality losses. The carrier’s cost transformation program, Hartford Next, has delivered $233 million in pre-tax expense savings and is expected to deliver $540 million in 2022 and $625 million in 2023. 

Read the full earnings release.

 


 

Key Numbers

  • Quarterly net income of $244 million, or $0.67 per diluted share
  • Quarterly core earnings of $203 million, or $0.56 per diluted share
  • Quarterly underlying combined ratio of 91.3, down 3.7 points from the previous year quarter
  • Quarterly net investment income of $509 million, up 11% from the previous year quarter

Liberty Mutual

 

Liberty Mutual saw more than 7% growth in both personal auto and homeowners written premiums during Q1 2021, and reported its sustained pricing momentum in commercial lines resulted in a 12% renewal rate increase within Global Risk Solutions. Overall, the carrier had a strong quarter despite an elevated level of catastrophe losses. 

Read the full earnings release.

 


 

Key Numbers

  • Quarterly net written premiums of $10.4 billion, up 3.6% from the previous year quarter
  • Quarterly combined ratio of 101.5, up 5.2 points from the previous year quarter

Progressive

 

Progressive saw more December claims being reported in January than were anticipated in its year-end reserves. The carrier also mentioned that the quarter was heavily impacted by the tornadoes and winter storms in the south, but stated that the growth of the first quarter was aided by the third round of stimulus payments. The carrier also added new auto policies at a furious rate in the first quarter, seeing a 13.7% rise in personal lines net premium written. Progressive also had the go-ahead for 12 rate cuts spanning five states in February and March, which could lower the premiums by nearly $29 million. 

Read the full earnings release.

 


 

Key Numbers

  • Quarterly net premiums written of $11.729 billion, up 19% from the previous year quarter
  • Quarterly net premiums earned of $10,42 billion, up 10% from the previous year quarter
  • Quarterly combined ratio of 89.3, up 2.4 points from the previous year quarter
  • Net income of 1.48 billion, up 114% from the previous year quarter

Root Insurance

 

Q1 2021 was Root’s first full quarter as a public company, and delivered its first $200 million-plus quarter of Direct Written Premium in its history. The insurer expects policy growth in Q1 could lead to increased losses but predicted ongoing underwriting and rate adjustments will offset some of that pressure on earnings. The carrier also had four states approve auto rate increases as of May 2021, which could boost the company's premiums by $14.3 million

Read the full earnings release.

 


 

Key Numbers

  • Net written premiums $203 million, up 23% from the previous year quarter
  • Direct loss ratio of 77%

Travelers Insurance

 

Despite dealing with high cat losses from February’s severe winter storm, Travelers generated a $733 million quarterly profit in Q1 2021, a 22% jump from the same period last year. According to CEO Alan Schnitzer, higher core income resulted from very strong underlying underwriting income, as well as higher levels of favorable prior year reserve development and net investment income, which helped offset the record level of catastrophe losses. 

Read the full earnings release.

 

 

Key Numbers

  • Quarterly net income $733 million, $2.87 per diluted share 
  • Quarterly core income $699 million, $2.73 per diluted share 
  • Consolidated combined ratio of 96.6
  • Underlying combined ratio of 89.5
  • Net written premiums of $7.505 billion, up 2% from the previous year quarter
  • Quarterly net realized investment gains $44 million pre-tax
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