Allstate Corp. said it recorded a third-quarter net loss applicable to common shareholders of $694 million compared to net income of $508 million a year ago during the same time.

Allstate’s Q3 combined ratio was an unprofitable 111.6 — more than 6 points worse than Q3 2021. The property-liability segment’s Q3 underwriting result was a loss of about $1.3 billion, due in large part to “adverse prior year reserve reestimates, primarily in auto insurance bodily-injury coverage and higher current report year claim severities across injury and physical damage coverages.”

In total, prior-year reserves were strengthened $875 million in Q3 — $643 million to personal auto, which booked a Q3 combined ratio of 117.4, or about 15 points worse than the Q3 2021 result.

Earned premium in auto increased 9.2 percent in Q3, driven by rate increases. Allstate brand auto insurance implemented rate increases of an average 14 percent in 19 locations in Q3.

In September Allstate President and Chief Executive Officer Tom Wilson said the insurer was going to keep pushing rate to keep up with auto loss-cost trends and the tactic will continue not just for auto but for home insurance as well.

“We continue to implement a multifaceted program to restore property-liability margins to targeted levels,” said Mario Rizzo, president of Property-Liability, in a statement. “This includes continued increases in auto and home insurance prices, reducing expenses and adapting claims settlement practices to a high inflation environment.”

Rizzo said Allstate is also putting a lid on states and lines of business that are not performing. He said Allstate will no longer write new homeowners and condominium business in California.

“Commercial insurance is being exited in five states, and coverage to transportation network companies will not be offered unless it utilizes telematics-based pricing,” Rizzo added. “Additional actions are likely in personal auto insurance.”

The combined ratio in homeowners insurance was 91.2, a positive improvement from the 111 recorded a year ago. Allstate said its risk management actions and reinsurance programs mitigated losses from Hurricane Ian. Allstate’s total catastrophe losses were $763 million in Q3 — down 40 percent from the same period a year ago. Last month the insurer said catastrophe losses net of reinsurance for September were an estimated $440 million, with about 80 percent of losses related to Ian.