Allstate says that it has estimated catastrophe losses for the month of April of $316 million or $250 million, after-tax.
The company said that catastrophe losses in April included fourteen events, primarily wind, hail and tornadoes in Texas and the southeast – estimated at $299 million, plus unfavourable reserve re-estimates for prior period events.
Allstate’s catastrophe losses for the month of April have spiked, compared to March’s, which the company estimated at $227 million or $179 million, after-tax.
Mario Rizzo, Chief Financial Officer of The Allstate Corporation, said: “In keeping with the outlook shared last month of taking more rate increases than initially assumed in 2022, Allstate continued to implement meaningful rate actions in April. The Allstate brand implemented rate increases of 6.4% across 14 locations in April, resulting in total Allstate brand insurance premium impact of 0.7%.
“We have implemented 67 rate increases averaging approximately 8.0% across 45 locations since the beginning of the fourth quarter 2021. Allstate brand implemented auto rate increases totaled $163 million in the month of April, after implementing $1.6 billion in the previous two quarters.”
Meanwhile, Allstate recently expanded its per-occurrence Nationwide Excess Catastrophe Reinsurance programme for 2022-2023, to provide coverage up to $6.614 billion of losses.