Allstate has said that it saw catastrophe losses in June of $356m or $281m, after-tax.
The firm said in a statement that June catastrophe losses included 10 events, primarily wind and hail in the Midwest, estimated at $315m, plus unfavorable reserve reestimates for prior period events. Catastrophe losses for the second quarter totaled $1.11bn, pre-tax.
Allstate said that inflationary trends continue to adversely impact current and prior report year claim severity and loss reserve estimates. As a result, unfavourable non-catastrophe prior year reserve re-estimates totalled $408m in the second quarter. This included $275m related to personal auto insurance, primarily from physical damage and bodily injury coverages. In addition, $91m of additional reserves were recorded for commercial auto insurance, primarily from shared economy business written in states where coverage has been terminated.
In contrast, the insurer said it saw estimated catastrophe losses throughout May of $436m, or $344m after tax.
May catastrophe losses included 14 events, primarily wind and hail in Texas, the Midwest and Canada, estimated at $423m, plus unfavourable reserve reestimates for prior period events. Catastrophe losses for April and May totalled $752m, pre-tax.
These most-recent results move Allstate back in line with previous months.
The firm had reported April cat losses of $316m back in May, or $250m after tax. The company said that catastrophe losses in April included fourteen events, primarily wind, hail and tornadoes in Texas and the southeast – estimated at $299m, plus unfavourable reserve re-estimates for prior period events.
