(Bloomberg) -- Allstate Corp., the largest publicly traded U.S.seller of car and home insurance, said it’s raising rates fordrivers after profitability declined at its namesake auto unit.
|Allstate joins Berkshire Hathaway Inc.’s Geico in lifting rates after marginsworsened. First-quarter underwriting income for Allstate autofell 48% to $144 million, the insurer said on a spreadsheet postedon its website on Tuesday.
|“We didn’t make as much money in auto insurance this quarter, inpart because of weather, in part because we have to adjust prices,reflecting economic activity,” Allstate Chief Executive Officer TomWilson said in a conference call on Wednesday. He said customershave been driving more miles as the economy improves, increasingthe number of claims.
|Allstate declined 4.1% to $67.15 at 10:40 a.m. in New York,extending its loss to 4.4% this year.
|The average premiums paid by customers have been “steadilyincreasing,” Matt Winter, Allstate’s president, said on thecall.
|In addition to the Allstate brand, Wilson’s company also sellscoverage through the Esurance and Encompass units.
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
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