Allstate Corp. said its net loss for the third quarter was $41 million compared to a loss of $685 million during the same time a year ago.

The Northbrook, Ill.-based insurer recorded an improvement in its third-quarter combined ratio — 103.4 from 111.6 the prior year.

“Allstate’s focus on improving profitability while implementing our growth strategy made excellent progress this quarter,” said Tom Wilson, president and CEO.

Allstate’s property-liability segment had a Q3 underwriting loss of $414 million compared to about $1.3 billion last year despite an increase in net premiums earned and written of 10 percent and 10.5 percent, respectively, to about $12.3 billion and $13.3 billion. The underwriting loss was primarily due to “continued increases in auto insurance loss costs, elevated catastrophe losses and adverse prior year loss development,” Wilson said.

Catastrophe losses in Q3 were about $1.2 billion compared to $763 million in Q3 2022.

“In response, we continue to raise auto and homeowners insurance prices, improve expense efficiencies, restrict growth in profit-challenged states, and enhance claims practices,” the CEO added. “The execution of these comprehensive actions will restore margins to target levels.”

Wilson said Allstate has initiated plans to grow in states that are achieving target auto insurance margins, and more expansion is ahead in 2024. “Allstate Protection Plans continue to grow its embedded protection offerings with U.S. retailers and internationally,” he said.

The combined ratio for Allstate’s auto insurance business was 102.1, an improvement of 15.3 points from a year ago. Auto rate increases averaging 5.9 percent were implemented in 25 locations in Q3, Allstate said.

For the homeowners business, the combined ratio worsened to 104.4 from 89.9 a year ago as catastrophe losses were higher — $878 million this year compared to $354 million in Q3 2022. Losses were mostly from the Maui wildfire and a large Texas hailstorm.