The Allstate Corporation has estimated that its catastrophe losses for the month of June were $309 million, pre-tax ($244 million, after-tax), putting the insurer’s total Q2 catastrophe losses at $1.07 billion, pre-tax ($847 million, after-tax).
Catastrophe losses in June comprised 16 events at an estimated cost of $311 million, pre-tax ($246 million, after-tax), Allstate explained.
These costs were partially offset by favourable reserve re-estimates of prior period catastrophe losses.
Four severe wind and hail weather events, which primarily impacted Texas, accounted for approximately 60% of Allstate’s estimated losses for June.
The company previously announced catastrophe losses of $290 million, pre-tax ($229 million, after-tax) for the month of April and $473 million, pre-tax ($374 million, after-tax) for the month of May, for a combined total of $763 million, pre-tax ($603 million, after-tax).
Allstate total Q2 catastrophe loss estimate is significantly higher than its estimate for Q1, which put losses at $680 million, pre-tax ($537mn after-tax).
Estimated losses were also up year-on-year, as Allstate posted a catastrophe losses estimate of $906 million, pre-tax ($716 million after-tax) in Q2 2018.
Allstate announced back in May that it had expanded its catastrophe reinsurance program for 2019 – 2020 to $4.863 billion, compared with a $4.5 billion program in the previous year.
The new coverage includes a $500 million retention on a per-event cover, meaning no individual event is expected to trigger its reinsurance protection.