Allstate 2015 Annual Report Download - page 115

The Allstate Corporation 2015 Annual Report 109
Esurance brand homeowners premiums written totaled $30 million in 2015 compared to $9 million in 2014. Factors
impacting premiums written were the following:
• 22 thousand increase in PIF as of December31, 2015 compared to December31, 2014.
• New issued applications totaled 28thousand in 2015 compared to 11thousand in 2014.
• As of December 31, 2015, Esurance is writing homeowners insurance in 25 states with lower hurricane risk that
have lower average premium.
Esurance brand homeowners premiums written totaled $9 million in 2014. Factors impacting premiums written were
the following:
• New issued applications totaled 11thousand in 2014.
• As of December31, 2014, Esurance was writing homeowners insurance in 14 states with lower hurricane risk that
have lower average premium.
Encompass brand homeowners premiums written totaled $497 million in 2015, a 1.8% decrease from $506 million
in 2014. Profit improvement actions impacting growth include increasing rates, enhancing pricing sophistication and
underwriting guideline adjustments. Factors impacting premiums written were the following:
• 7.4% or 27 thousanddecrease in PIF as of December31, 2015 compared to December31, 2014.
• 31.4% decrease in new issued applications to 48thousand in 2015 from 70thousand in 2014.
• 6.7% increase in average premium in 2015 compared to 2014.
• 3.1 point decrease in the renewal ratio in 2015 compared to 2014. Encompass sells a high percentage of package
policies that include both auto and homeowners; therefore, declines in one coverage can contribute to declines
in the other.
Encompass brand homeowners premiums written totaled $506 million in 2014, a 9.8% increase from $461 million in
2013. Factors impacting premiums written were the following:
• 2.5% or 9thousand increase in PIF as of December31, 2014 compared to December31, 2013.
• 11.4% decrease in new issued applications to 70 thousand in 2014 from 79 thousand in 2013 due to profit
improvement actions including rate changes, underwriting guideline adjustments, and agency-level actions.
• 6.0% increase in average premium in 2014 compared to 2013.
• 1.0 point decrease in the renewal ratio in 2014 compared to 2013.
Other personal lines Allstate brand other personal lines premiums written totaled $1.59 billion in 2015, a 1.1% increase
from $1.57 billion in 2014, following a 1.9% increase in 2014 from $1.54 billion in 2013. The increase in 2015 primarily
relates to renters insurance and the increase in 2014 primarily relates to renter and condominium insurance.
Commercial lines premiums written totaled $516 million in 2015, a 4.5% increase from $494 million in 2014, following
a 6.0% increase in 2014 from $466 million in 2013. The increase in 2015 was driven by higher renewals and increased
average premiums. The increase in 2014 was driven by higher renewals and increased new business resulting from a new
business owner policy product.
Other business lines premiums written totaled $756 million in 2015, a 5.4% increase from $717 million in 2014,
following a 19.1% increase in 2014 from $602 million in 2013. The increase in 2015 was primarily due to increased
sales of vehicle service contracts, guaranteed asset protection, and other products at Allstate Dealer Services, partially
offset by a decline in Allstate Roadside Services premiums. The increase in 2014 was primarily due to increased sales of
vehicle service contracts at Allstate Dealer Services, and new and expanded contracts where Allstate Roadside Services
provides roadside assistance to third party company’s customer bases.