First-quarter 2022 insurance premiums earned grew 6.5 percent to about $11 billion at Allstate Corp., as net income was $630 million compared with a loss of about $1.4 billion during the first three months of 2021.

CEO Tom Wilson said net income was driven by “excellent profitability in homeowners insurance” as well as investment income and earnings from Allstate’s health and benefits business, which overcame “negative impact of inflation on auto insurance margins.”

Allstate recorded an unprofitable combined ratio in auto insurance of 102.1 in the first quarter—21.6 points higher than the same period a year ago. Claim severity and accident frequency each increased, especially compared to the lower levels experienced for the first quarter of 2021 during the pandemic, Allstate said. The rise in severity levels was also due to increased used-car prices, higher parts and labor costs, medical inflation, and more attorney representation.

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Auto insurance results, Allstate said, were also affected by 2.1 points of unfavorable prior-year reserve re-estimates from physical-damage and bodily-injury coverages.

For Allstate’s homeowners insurance business, underwriting profit was $410 million and the combined ratio improved to 84.2 from 88.8 during first-quarter 2021. Allstate brand net written premiums for the first quarter increased 17 percent, driven by premium increases of 14.3 percent due to rate increases and inflation in insured home values.

Lower catastrophe losses also helped financial results in the quarter. Cat losses dropped 21.7 percent to $462 million.