Reinsurance News

Allstate estimates cat losses for May at $885 million

15th June 2023 - Author: Kane Wells

U.S. primary insurer Allstate has announced estimated catastrophe losses for May of $885 million or $699 million, after-tax.

Allstate logoAccording to Allstate, May’s catastrophe losses include 12 events estimated at $893 million, with approximately 70% of the losses related to two wind and hail events.

This was partially offset by favourable reserve reestimates for prior events, the reinsurer said.

Last month, Allstate estimated catastrophe losses at $799 million or $631 million, after tax.

This means total catastrophe losses for April and May combined were $1.68 billion, pre-tax.

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Also during May, the Allstate brand implemented auto rate increases of 9.3% across 15 locations, resulting in a total brand premium impact of 1.6%.

Jess Merten, Chief Financial Officer of The Allstate Corporation, commented, “Allstate continued to implement significant auto insurance rate actions as part of our comprehensive plan to improve profitability.

“Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 4.9%, which are expected to raise annualized written premiums by approximately $1.28 billion.”

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