Primary insurance giant, Allstate, has revealed that the five October wildfires that occurred in California accounted for approximately 90% of the firm’s monthly catastrophe losses, totalling roughly $452 million.
Photo: NBC news
Allstate has announced pre-tax catastrophe losses for the month of October of $516 million, which includes losses from 11 events totalling $502 million, and $14 million of unfavourable reserve re-estimates of prior reported catastrophe losses.
After-tax, the insurer’s monthly catastrophe loss falls to $335 million, and the company explains that roughly 90%, or approximately $452 million (pre-tax) of the overall loss is from the five California wildfires that occurred. After-tax, the wildfires accounted for approximately $302 million of Allstate’s October 2017 catastrophe losses.
It’s assumed that Allstate’s California wildfire total and overall October 2017 catastrophe loss experience is after any reinsurance protection is taken into consideration.
Impact Forecasting, the catastrophe risk modelling unit of reinsurance broker Aon Benfield, said recently that the California wildfires are expected to drive an insurance and reinsurance industry loss of $8 billion.
Allstate is the latest company to announce its loss estimate for the devastating fires, with those that have already reported expected losses including Travelers, AIG, and AXIS Capital.
Furthermore, the California Insurance Commissioner recently said that claims filed had already exceeded $3.3 billion.
