Allstate has reported estimated gross catastrophe losses, excluding homeowners flood, for hurricane Harvey of pretax $576 million, $23 million of which is expected to be recovered from reinsurance agreements.
About 55% of the firm’s Harvey losses are related to auto cover.
$53 million of losses and expenses are expected from commercial insurance, auto protection contracts and loss adjusting expenses, in excess of its reinsurance allowances.
The carrier’s Harvey losses bring its total loss figure for August to $591 million pretax, including adjustments from reserve re-estimates for prior catastrophe losses.
Previously Allstate announced pretax losses for July at $181 million, bringing the loss figure for the last two months to $774 million pretax – significantly raising its third-quarter 2017 loss ratio.
While Allstate’s reinsurance covers just 4% of its hurricane Harvey exposures, it may be covered to a greater capacity by its reinsurance for future losses including the impacts of hurricane Irma, which the firm has yet to tally up.
The insurer added that its loss estimates may vary more significantly due to the higher levels of uncertainty from the complexity of large-scale events such as customers’ inability to gain access to their homes and autos and submit claims.
