US primary insurer Allstate Corporation has announced an estimated $632 million in pre-tax catastrophe losses for April 2020.
Catastrophe losses, which came out to $499 million after tax, were driven by six events over the month.
Together, these six events resulted in an estimated cost of $627 million pre-tax, or $495 million after tax.
The remainder of the loss was accounted for by unfavourable prior period reserve re-estimates.
Approximately 55% of estimated catastrophe losses in April were caused by two severe wind and hail events that impact roughly half of the states.
Allstate reported a 59.3% decrease in its net income for the first quarter of 2020, as the COVID-19 pandemic hit investments and premiums were returned to customer.
The crisis has already caused rating agency Fitch to downgrade the company’s outlook on the company to stable from positive.