U.S. primary insurer Allstate has announced estimated catastrophe losses for February of $211 million or $167 million, after tax.
Catastrophe losses for February events were estimated at $241 million, and related to nine events primarily from wind and rain that were geographically widespread.
This was partially offset by favourable reserve re-estimates for prior events, explains Allstate,
Last month, the insurer announced that January’s estimated pre-tax catastrophe losses were $307 million ($243 million after-tax).
Combined, catastrophe losses for January and February total $518 million, pre-tax.
In its Q4 2022 results, Allstate reported a net loss of $310 million for Q4 of 2022, primarily driven by auto insurance underwriting losses.
This compares to a net income of $790 million in the same quarter of 2021. Adjusted net loss was $359 million, or $1.36 per diluted share, compared to adjusted net income of $796 million generated in Q4 of 2021.
At the time, Allstate suggested that this decline reflected increased claims severity, higher unfavourable prior year reserve re-estimates, increased catastrophe losses, and lower performance-based investment income.
Earlier this month, Allstate raised the top of its Nationwide Excess Catastrophe Reinsurance Program tower to a record high of $7 billion after the placement of a new $100 million catastrophe bond transaction.
At this level, it’s the highest amount of reinsurance protection that the insurer has secured to cover its catastrophe losses, and is above the $6.6 billion as at the start of the 2022 mid-year reinsurance renewals by $400 million.
At the start of 2022, the tower extended up to $5.763 billion, and at the start of 2021 and 2020, this tower was only $4.984 billion.
