An unexpected decline in auto accident frequency helped The Allstate Corp. soar in its 2018 first quarter, along with lower catastrophe losses. The Illinois-based insurer also credits the Trump tax cuts with helping its bottom line.

Allstate booked $946 million in consolidated net income for the first quarter, translating to $2.63 per diluted common share. In the 2017 first quarter, the insurer reported $666 million in net income, or $1.79 per common share.

“Excellent execution of our operating plan led to increase growth and profitability in the first quarter…We also benefited from an unexpected decline in auto frequency, lower catastrophe losses and a reduction in federal taxes,” Allstate Chairman, President and CEO Tom Wilson said in prepared remarks.

He added that both Allstate and the insurer’s Esurance brands were able to increase policies in force due to both higher customer retention and increased new business.

Q1 result highlights:

• Allstate’s property-liability consolidated combined ratio was 88 for the quarter compared to 92.9 in the same year-ago period.

• Net investment income hit $786 million, up 5.1 percent from the 2017 first quarter, Allstate said.

• Consolidated property/casualty insurance premiums jumped to just under $8.3 billion for the quarter, from $7.96 billion in the 2017 first quarter.

• Allstate property-liability catastrophe losses were $361 million, down considerably from $781 million over the same period last year.

• Allstate brand homeowners net written premium grew 4.4 percent in Q1 compared to last year, thanks to average premium increases. Additional Allstate brand personal lines policies saw net written premium of $375 million, up just under 2 percent from the 2017 first quarter.

• Esurance saw net written premium grow nearly 8 percent compared to the previous year, thanks to premium hikes in both auto and homeowners insurance and a 1.1 percent rise in total policies in force. Allstate’s strategy to drive Esurance broad-based growth across lines of business led to a 33.3 percent jump in homeowners policies in force as well as higher new issued auto applications and retention, the insurer said. Esurance also saw its recorded combined ratio drop to 99.3 in Q1, 3.1 points better than in Q1 2017.

• Allstate’s Encompass division saw net written premium dip 5.5 percent in Q1 over the previous year due to the insurer’s ongoing profit improvement plans. This division reported a 98.4 combined ratio for the quarter, 13.3 points better than the previous year, thanks to lower catastrophe losses.

Source: Allstate