Thanks, Tom.
turn Slide Let's to X.
date. profit the our have driven seeing rate earned The shows cost quarter, policies and largely higher a Property-Liability the are were severity. in severe weather by on accident of starting We X.X% the offset in financial reductions offset in and the insurance, in above plan were homeowners by claim improvement partially Price increased and force. premium impact events which to premiums prior average increases we comprehensive by our chart frequency decline auto increased auto with year left implemented results, increases and
worse highlights than combined The prior points quarter right losses. $X.X from of losses. the to billion the XX.X billion $X.X catastrophe due on in the loss ratio, the was of components in quarter increase $X.X underwriting year billion including catastrophe the the chart The
the the quarter, primarily accident year. General, second Prior catastrophes, a of the was ratio in coverages million Of on XXXX the year in impact strengthening auto million in injury excluding by personal adverse National $XXX reestimates, reserve X.X driven had $XXX in point combined the quarter.
and of related defense claims the passed modest existing million In increase We've and a legal loss addition, suits the were torque this prior reserve years March in of reflects reform costs approximately a adjustment. that the charge year. combination been activity was closely $XX filed to by strengthened Florida for in state of in monitoring on litigation higher
on quarter sequentially year quarter to and Despite XX.X continuing X.X the the of points first underlying pressure combined by points loss the of side, X.X modestly prior ratio the improved XXXX. compared versus
let's five Allstate's move detail. to slide discuss in profitability more to auto Now, insurance
The the recorded reflecting auto lower reserve severity, and ratio were and offset prior year XXX.X% insurance second prior higher earned largely current non-catastrophe higher of combined points expense accident catastrophe year losses X.X re-estimates. premium, quarter, year frequency was than higher quarter adverse increased reductions, report and which by
profit raise enhanced auto on profitability to impact underlying actions the processes continue growth, margins. This insurance restrict rates, our improve insurance improvement trends. our part auto depicts of expenses, claim We to as comprehensive slide plan reduce and of
assess a And year developed, to we severities XXXX the continually ultimate claim As we year continue as progresses. severity as expectations. reminder, last report increase year,
quarterly removes intra-year shows left the quarter timing ratio had recorded the severity underlying flat XXXX with combined that the ratios the for average XXXX. current on on higher severity from throughout expectations, quarters effect results. adjusted XXXX assumptions, year quarterly through combined underlying of full chart The severity for essentially which the to the trend quarterly account adjusting changes After was
inflation. continued we quarters, the of in ratio profitability improved and impact cost persistently modestly move the levels high both two reflecting loss has the into As our of underlying the first each actions of combined XXXX,
shown the prior average the blue percent expense by to right average per The loss policy the shown chart bars premium by and annualized change line the underlying the compared at on light depicts and year-end. earned blue
a in earned and underlying increases in resulted and severity combined frequency higher premium in claim loss outpaced accident drove Rapid and increases mid-XXXX, in per policy and the since average which higher significant in underlying XXXX change ratio both expense the XXXX.
two of earned combined a annualized increase premium policy improvement to we've first modest resulting and in outpace increases, elevated the trend the As in cost rate per still line the begun the XXXX, underlying to has implemented continues ratio. underlying in quarters
six four in rates, our actions, the an practices on Slide expenses, loss returns to implementing enhancing areas raising underwriting focus; increase There to execution auto reducing manage approach provides of are and claim costs. insurance. update comprehensive of
Allstate implemented book, the In of six rates, across in including of XXXX. quarter. the XX.X% additional we in X.X% the brand rate remember the with second Starting X.X% an have first implemented months XXXX, you
National in XXXX. months additional General six of increases of implemented XX% an the XXXX, first X.X% through rate
XXXX We business. to target growth, auto temporarily increases expenses core transformative reduced levels. for restore operating Reducing will is in the advertising new to margins also back we continue to appetite mid-XXs and pursue to insurance lower to rate the reflect
these to have not to more point, and locations on restrictive target continue underwriting achieved yet states and the the are brand at from remove achieving auto number the margins. XXX underlying in XX of segments new ratio of risk, We the second premium of this combined achieving states and have for XX restrictions at of XX% under business states, in beginning we states, selectively To the actions than XX% segments to prices where but better premium are insurance Allstate of increased that end representing quarter. approximately which adequate XXXX risk represented just end an
that where Ensuring operating reinspections in and both continued resources, settlement development. value, in increasing high mitigate this inflation things effectively injury modifying to and is claim enhancing practices of loss This practices the physical accelerating and claim environment. particularly risk necessary, those injury processes like the expanding are our delivering doing customer to key damage coverages claims includes of by
repairing negotiating also offset associated some of parts agreements vehicles. the service to are with and improved We inflation vendor
Jersey. are had to table new large states with New have with left respective costs progress in disproportionate insurance York Slide provides year California, volumes. increases department on our prices pending take the X provides far actions The our the cover not states, current implemented either on an and on so to three a adequate currently restrict in are we update these profitability. this in business impact to Because New rate
of issued California, XX% by year the York a applications prior compared New from As declined to new approximately the Jersey combination quarter. and result, New
pending filed the implemented second that in quarter the increase we XX% for California, second increase rate of and Insurance. is a currently also In a Department with April in X.X%
the We to Department continue California work with level. closely to filing adequate and of secure this auto rates to an restore approval
year. closed points June, received will in far In that a July, in implemented additive X.X% in approval implemented weighted to in -- of will increase approximately XXXX to by for rates New And this rate be in which larger further subsequently filings we was driven increases open the approved so to York, the three companies, make two approved continue their companies. we
Jersey, approval a in we increase X.X% in the filed quarter second New quarter. received subsequent XX% for the increase first a rate In and
rate loss implementing As persistent mentioned earlier, increases we of XXXX to balance for additional counteract cost increases. the anticipate
we point quarter. the the to compared Slide improvement underwriting highlights year deeper in the of how drivers and expense prior through shows value the ratio X into customer on chart expense quarter X.X left second dives reductions. The are property the improving liability
more a The appetite advertising spend, limited given point from has first green impact business. temporarily bar shows been the X.X for new which reduced,
The second in green costs premiums higher bar fixed lower relative shows impact of driven costs, and operating by mainly the decline agent costs. employee-related the and to
longer-term we because impairment of intangibles with our catastrophe-related ratio in of then This expense ratio, right, trend coronavirus-related advertising. associated ratio, reducing metric with amortization to costs underwriting expense to adjusted and to remain committed the our transformative Shifting the expenses, costs excluding restructuring, starts as growth. claims It excluding settling adds claims on fluctuate. part purchased tend and our expense catastrophe
strong innovation Through second significant of a adjusted we've ratio improvement and expense quarter driven XX.X%. execution, with
We of approximately which XXXX. our to XXXX, adjusted reduction achieving year-end ratio a expect represents improvement, in to by X-point additional expense point drive starting compared an XX
price goal certainly is a intent establishing the While competitive. increasing premiums average more tailwind, represent to become our in
at requires areas, through business sustainable enabling including structure centralized changes operating new agency three with support a enhancing models. compensation capabilities, and structure and higher in This in cost focus improving rationalization and improvement lower primary efficiency outsourcing, automation digitization model and distribution on future our agent cost growth through our
driven to slide in X performance, despite loss let's elevated incurred underlying homeowner review results, quarter catastrophe an insurance losses. by Now, move improving underwriting which to the
model business reinsurance and the incorporates differentiated in Our is underwriting, ecosystem a product, industry. that unique claims
catastrophe consistently has or approach losses. yearly generated industry-leading underwriting Our fluctuations in quarterly results despite
ratio, has outperformed combined points including by insurance the catastrophes, industry through XX of XXXX. XXXX homeowners from the impact Our
annual generated $XXX average During income million. of that approximately same underwriting we period, time
gross insurance increase the for Net average statistics prior and the and The a Allstate policy year brands policies both chart premium written premium National shows Allstate on from Protection the higher operating in in X% homeowners per predominantly left quarter, in General force. key driven increased the quarter. XX.X% by
increases implemented XXXX per policy points gross XX.X% year additional inflation to premium implemented Allstate through brand first compared of as rate driven in written increased and prior the average an as the home quarter costs. XXXX well by insured six by throughout replacement months X.X
among due primarily results, ratio. Allstate's combined the last was of increase combined points to the by ratio weather-related and catastrophe due is highest increased homeowners quarter full catastrophe in XX.X second than second quarter history a higher loss of While to second XXX.X% the typically ratio XX.X seasonally year quarter the in to high losses, year's XXXX point compared severe
The underlying improved right combined year per liability by catastrophe the frequency event. quarter XX.X% which higher second on higher X.X prior property by events loss lower an elevated a driven number and expense points chart quarter, earned experience, reflecting the provides of a offset ratio historical and compared compared on to points, ratio, perspective of of partially XX.X to historical larger losses ratio was premium, The the severity. lower increased catastrophe by
capital filled economic within XX-year framework. of quarter second outcomes second quarter points, average is in and not it contemplated above the points XX.X our unprecedented modeled XX While result the was
in attractive repair respond geographies trends continue increases to adequate the loss by cannot rate where returns We implementing we shareholders. our generate in and risk-adjusted limiting homeowners for business address higher our to to and achieve in confident remain exposures ability to costs returns
And now remainder over to of the discuss it Jesse I'll our to results. hand
