The Allstate Corporation has announced pre-tax catastrophe losses of $237 million ($187 million after-tax) for the month of October.
The U.S. primary insurer states that catastrophe losses in the month of October comprised of 12 individual events.
60%, or $142.2 million of the pre-tax ($112.2 million after-tax) loss total for the month was a result of one severe weather event primarily impacting the state of Texas.
In October last year, Allstate announced pre-tax catastrophe losses of $202 million, driven mostly by the impact of Hurricane Michael.
Earlier this year, Allstate announced an estimated $235 million pre-tax catastrophe loss bill for the month of July, which came after the firm announced Q2 2019 pre-tax catastrophe losses of $1.07 billion. For Q1 2019, Allstate recorded pre-tax catastrophe losses of $680 million.
In the firm’s Q3 earnings announcement, Allstate revealed quarterly catastrophe losses of $510 million, pre-tax.
So, with the October number now out, Allstate’s pre-tax catastrophe loss experience for the first 10 months of 2019 sits at $2.5 billion. In comparison, at the end of October 2018, Allstate’s catastrophe loss bill reached just under $2.1 billion.
Traditionally, Allstate only reports its monthly catastrophe loss expectation once it exceeds $150 million, which is why this is the first cat loss announcement the insurer has made since July, meaning that the firm’s loss experience in both August and September fell below the threshold.
However, in order to provide greater transparency for shareholders, starting from this quarter, Allstate will remove the current $150 million threshold and report catastrophe losses every month.
