Allstate 2015 Annual Report Download - page 110

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Pricing of property products is typically intended to establish returns that we deem acceptable over a long-term period.
Losses, including losses from catastrophic events and weather-related losses (such as wind, hail, lightning and freeze losses
not meeting our criteria to be declared a catastrophe), are accrued on an occurrence basis within the policy period. Therefore,
in any reporting period, loss experience from catastrophic events and weather-related losses may contribute to negative
or positive underwriting performance relative to the expectations we incorporated into the products’ pricing. We pursue
rate increases where indicated, taking into consideration potential customer disruption, the impact on our ability to market
our auto lines, regulatory limitations, our competitive position and profitability, using a methodology that appropriately
addresses the changing costs of losses from catastrophes such as severe weather and the net cost of reinsurance.
Allstate Protection outlook
• Allstate Protection will continue to focus on its strategy of offering differentiated products and services to our
customers while maintaining pricing discipline.
• Allstate Protection will continue to take actions to improve auto profitability by increasing prices, evaluating
underwriting standards, managing expenses, and managing loss cost through focus on claims process excellence.
• Allstate Protection will continue to grow homeowners policies without significantly increasing catastrophe exposure.
• We expect that volatility in the level of catastrophes we experience will contribute to variation in our underwriting
results; however, this volatility will be mitigated due to our catastrophe management actions, including the purchase
of reinsurance.
• We will continue the implementation of our trusted advisor strategy, enabling agencies to more fully deliver on the
Allstate brand customer value proposition.
• We will continue to modernize our operating model to efficiently deliver our customer value propositions.
• We will invest in building and acquiring long-term growth platforms.
Premiums written is the amount of premiums charged for policies issued during a fiscal period. Premiums are
considered earned and are included in the financial results on a pro-rata basis over the policy period. The portion of
premiums written applicable to the unexpired term of the policies is recorded as unearned premiums on our Consolidated
Statements of Financial Position.
A reconciliation of premiums written to premiums earned is shown in the following table.
($ in millions) 2015 2014 2013
Premiums written:
Allstate Protection $ 30,871 $ 29,613 $ 28,164
Discontinued Lines and Coverages — 1 —
Property‑Liability premiums written 30,871 29,614 $ 28,164
Increase in unearned premiums (549) (723) (572)
Other (13) 38 26
Property‑Liability premiums earned $ 30,309 $ 28,929 $ 27,618
Premiums earned:
Allstate Protection $ 30,309 $ 28,928 $ 27,618
Discontinued Lines and Coverages — 1 —
Property‑Liability $ 30,309 $ 28,929 $ 27,618
Premiums written by brand are shown in the following table.
Allstate brand Esurance brand Encompass brand Allstate Protection
($ in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013
Auto $ 18,445 $ 17,504 $ 16,752 $ 1,576 $ 1,499 $ 1,308 $ 641 $ 665 $ 641 $ 20,662 $ 19,668 $ 18,701
Homeowners 6,711 6,536 6,289 30 9 — 497 506 461 7,238 7,051 6,750
Other personal
lines (1) 1,586 1,569 1,539 7 5 2 106 109 104 1,699 1,683 1,645
Subtotal –
Personal
lines 26,742 25,609 24,580 1,613 1,513 1,310 1,244 1,280 1,206 29,599 28,402 27,096
Commercial lines 516 494 466 — — — — — — 516 494 466
Other business
lines (2) 756 717 602 — — — — — — 756 717 602
Total $ 28,014 $ 26,820 $ 25,648 $ 1,613 $ 1,513 $ 1,310 $ 1,244 $ 1,280 $ 1,206 $ 30,871 $ 29,613 $ 28,164
(1) Other personal lines include renter, condominium, landlord and other personal lines products.
(2) Other business lines include Allstate Roadside Services, Allstate Dealer Services and other business lines.