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Hey listeners, it's Friday, February 7th. I'm Chip Cutter for the Wall Street Journal,

and this is What's News and Earnings, our look at the broad themes that stood out in the latest earnings season.

Today, we're focusing on insurers, a group of companies that has been in the headlines a lot recently,

especially since the catastrophic fires in California that are likely to cost the insurance industry billions of dollars.

Big Home and Auto Insurers have now reported their earnings giving us a sense for how companies are handling the costly California crisis and more.

Telos Demos, co-host of the Wall Street Journal's Take on the Week podcast, has been analyzing the results of the big insurers and joins us now.

Hey, Tell us.

Hi, how are you?

Doing well. Thanks for being here.

So among the home and auto insurers, how did the companies perform? Which companies are faring the best?

Right now is actually a pretty good time to be a home and auto insurer, despite what is going on in California and obviously

the wildfires. Home and auto insurers, we're having a tough couple of years leading up to this,

particularly in auto insurance. After the pandemic, the severity of losses soared. However,

we're now kind of on the other side of that. Auto insurance, home insurance rates have gone up pretty substantially.

And so the fourth quarter results for insurers have been largely pretty positive.

I'll just give you one example of one who just reported their 2024 results.

And you'll see it's pretty stark.

Right.

So Allstate, last year, they printed over the course of

2023 a net loss of around $300 million. In 2024, after adjustments in pricing,

...