Allstate posts soaring profits after aggressively raising car insurance rates

Allstate held its year-end call with Wall St. investors this morning, and reported $1.5 billion in fourth quarter profits, a huge increase over its $303 million loss in the same quarter a year ago. Allstate CEO Tom Wilson credited improved car insurance profits as a primary reason for the increase.

In December 2022, Wilson said the company “may end up overshooting a little bit,” as it set out to aggressively raise car insurance rates. Since then, Allstate raised Illinois car insurance rates by $210 million.

In all states but Illinois and Wyoming, if an insurer “overshoots” regulators have the power to reject or modify an excessive rate hike.

We’re working to change that.