Reinsurance News

Allstate reports catastrophe losses of $982mn for April & May

18th June 2020 - Author: Luke Gallin

The Allstate Corporation has announced that in the month of May it incurred estimated catastrophe losses of $350 million, pre-tax ($277 million after-tax).

Allstate logoIn April, U.S. primary insurer Allstate announced an estimated $632 million in pre-tax ($499 million after-tax) catastrophe losses. Combined, estimated catastrophe losses for the months of April and May 2020 total $982 million, pre-tax ($766 million after-tax).

This follows estimated catastrophe losses of $211 million in the first-quarter of the year, which actually fell by 69% on the same period in 2019 although the company reported a dip in net income as a result of COVID-19-related challenges.

Allstate says that its catastrophe loss estimate for the month of May 2020 is comprised of eight events at an estimated cost of $346 million, pre-tax ($273 million after-tax), plus unfavourable prior period reserve reestimates.

The majority, or 80% of the May catastrophe hit came from four severe weather events which included rain, wind and hail, primarily impacting Texas and the Midwest.

Towards the end of May, Allstate announced that it will extend its Shelter-in-Place Payback scheme through June to help its personal auto customers during the ongoing pandemic.

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