Catastrophe losses were $259 million during the first quarter, compared to $333 million during the same time in 2011.

Premiums written increased 4 percent compared to 2011's first quarter due primarily to Allstate's acquisition of Esurance.

Approved rate increases and a decline in loss costs pushed the first-quarter combined ratio in the homeowners segment to 80.2, compared to 91.4 for the prior-year quarter. Allstate expects to apply for high single-digit rate increases going forward, says Matthew Winter, president of Allstate auto, home and agency, during a conference call.

Premiums written by agents were negatively affected by planned steps to improve auto results in the personal-injury-protection states of New York and Florida and rate increases in the homeowners lines. Winters says the rating actions have had a “chilling effect on our ability to grow” but “growth in the absense of profit is the wrong strategy.”

Winters says Allstate sought rate earlier than its competition but the rest of the marketplace is now catching up. He tells analysts on the call that about 40 percent of results in homeowners is sustainable—the product of rate increases and re-inspections—while about 60 percent is due to other factors, like a drop in catastrophe losses.

The insurer launched a controversial agency-consolidation plan about a year ago to in an effort to create larger, more-efficient agencies. But Winters now says the company “did a bad job of explaining” the initiative.

Wilson says bigger could be better, but Allstate is “seeking to have all agents be more successful,” and it's “not like we're trying to get rid of a certain class” of agencies.