Nearly $360 million of first-quarter catastrophe losses drove a7.4 percent decrease in net income for Allstate Corp.

The Northbrook, Ill.-based insurer posted first-quarter netincome for $709 million compared to $766 million a year ago duringthe same time.

Catastrophe losses during the first three months were $359million—about $100 million more than the same quarter in 2012.

The corporation’s property-liability segment booked net incomeof $616 million compared to $695 million a year ago during thefirst quarter. Consequently, the property-liability first-quartercombined ratio increased 1.1 points to 93.2. Net written premiumshere increased 2.5 percent to $6.6 billion, Allstate says.

Allstate has been raising rates and reducing exposure over thelast several years. These actions continued to reduce policy countduring the first quarter in auto and home insurance, but at aslower rate, Allstate says.

The company says rate increases and a decline in frequencyoffset some pressure from severities in the insurer’s autobusiness.

Esurance, Allstate’s direct auto writer, experienced policygrowth of 36.4 percent in the first quarter. Net premiums writtengrew 30.5 percent during the same time, when compared to 2012’sfirst three months.

The first-quarter combined ratio at Esurance was an unprofitable116.7 as Allstate continues to invest in marketing the direct autoinsurer.

In homeowners, a slight increase in frequency was offset by rateincreases and a drop in severity, Allstate says. The segmentrecorded a combined ratio of 85.1, which included 18.7 points ofcatastrophe losses.