(Bloomberg) -- Allstate Corp. reported earnings that beat estimates as the property and casualty insurer benefitted from lower catastrophe losses. 

Allstate said adjusted earnings per share for the first three months of the year were $5.13, surpassing Wall Street estimates of $3.88. The company said first-quarter catastrophe losses were $731 million, dropping by almost 57% on the year and below estimates.

The lower catastrophe losses were slightly below the ten-year average, Allstate Chief Executive Officer Tom Wilson said in an interview, reflecting what he called “more normal volatility.”

“Industry leading home insurance capabilities, when combined with lower catastrophe losses, further improved profitability,” Wilson said in a Wednesday earnings statement. “Allstate’s results support accelerated execution of the strategy to increase auto and home insurance market share and broaden protection provided to customers.”

The insurer said net investment income was $764 million up from $575 million a year earlier. Net income applicable to common shareholders was $1.19 billion — a year-over-year increase from a net loss of $346 million.

The Northbrook, Illinois-based company has struggled in states like California, New Jersey and New York, which have cost-limiting policies that acutely hit insurers. 

Consumers have also struggled to find home insurance in climate-impacted areas, though Allstate has said it will resume its long-paused underwriting in California if the state implements regulatory proposals to make it easier for insurers to raise rates.

“It’s a real problem, it’s a fixable problem, but only if the regulators are willing to work with the insurers to come up with a solution,” Wilson said in the interview.

Allstate shares had gained 22.6% this year through Wednesday. 

(Updates with CEO comments starting in the third paragraph.)

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