U.S. primary insurer Allstate Corporation has estimated that catastrophe losses for the first quarter of 2023 totalled $1.69 billion, pre-tax.
According to Allstate, catastrophe losses for March alone stood at $1.17 billion or $927 million, after tax.
The insurer writes, “Catastrophe losses for March events were estimated at $1.26 billion, related to 10 events, with approximately 75% of the losses related to three wind events, partially offset by favourable reserve re-estimates for prior events.”
Allstate released a report in February estimating that catastrophe losses for the month were $211 million, while January’s number totalled $307 million.
In March, the Allstate brand implemented auto rate increases of 7.6% across 10 locations, resulting in a total brand premium impact of 0.5%.
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 1.7%, which are expected to raise annualized written premiums by approximately $454 million.
“In addition, the California Department of Insurance recently approved our latest Allstate brand auto insurance rate increase filing of 6.9%, which we expect to implement in April and be effective in June 2023.”
Allstate notes that unfavourable prior year reserve re-estimates, excluding catastrophes, totalled $27 million in the first quarter with $23 million attributed to commercial insurance, primarily related to business that is being exited.
Beginning next quarter, the firm will only disclose quarterly prior-year reserve re-estimates, excluding catastrophes, if material.