Large US primary insurer Allstate has reported estimated catastrophe losses of $230 million ($182 million after-tax) for the month of June, taking second quarter losses to $2.12 billion ($1.67 billion after-tax), and bringing total catastrophe losses for June year-to-date to $2.85 billion, pre-tax ($2.25 billion after-tax).
According to Allstate, the June catastrophe losses included 18 events estimated at a total of $274 million, which suggests the firm benefited from some favourable prior period development in the month.
Allstate says that the June 2024 cat losses were primarily due to widespread wind and hail events.
Compared to June 2023, this year’s catastrophe losses are significantly lower, with last year seeing $1.01 billion (pre-tax) in losses.
June’s figure, combined with April’s estimate of $494 million ($390 million after-tax) and May’s $1.4 billion ($1.1 billion after-tax), brings the total catastrophe losses for Q2 to $2.12 billion. This is also lower than Q2’23, which saw total catastrophe losses of $2.7 billion.
Analysts at BMO Capital Markets recently estimated that Allstate would see Q2’24 catastrophe losses of around $2.65 billion, of which $2.15 billion was expected from May to June. However, the June catastrophe losses were lower than anticipated, so the insurer’s Q2 cat bill has come in lower than analysts estimated.
