US primary insurer Allstate Corporation has announced estimated catastrophe losses of $466 million for the first-quarter of 2021, after tax and $1.08 billion in anticipated reinsurance and subrogation recoveries.
All in all, gross losses from catastrophe events during the opening quarter of 2021 amounted to $1.67 billion for Allstate, but were partially offset by the company’s reinsurance protection and subrogation recoveries.
Pre-tax, catastrophe losses in the month of March totalled $252 million ($54 million after-tax and reinsurance). This figure was driven by six events in the month at a cost of $208 million, plus increased prior period reserve estimates of $44 million.
According to Allstate, one large wind/hail event accounted for roughly 55% of March estimated cat losses.
As in February, Allstate’s nationwide aggregate reinsurance cover partially offset cat losses in March, to the tune of $184 million.
Last month, the severe winter freeze in the U.S., primarily impacting Texas, resulted in gross losses of approximately $1.3 billion for Allstate; resulting in a recovery under its aggregate reinsurance arrangement.
After-tax and reinsurance, February cat losses totalled $412 million, which, combined with the $54 million reported today, takes Allstate’s Q1 2021 cat loss bill to an estimated $466 million.
For comparison, Allstate reported cat losses of $211 million in the first-quarter of 2020; alongside a recorded combined ratio of 84.9% and underwriting income of $1.35 billion.
