Allstate Corporation, one of the largest primary insurers in the U.S, has estimated that it will incur $202 million of catastrophe losses for the month of October 2018, $136 million of which were caused by Hurricane Michael.
This estimate follows catastrophe losses of $177 million for the month of September and $186 million for the month of August.
Allstate’s October losses are pre-tax ($160 million after-tax) and are typically post-reinsurance, although the company has not confirmed this.
The insurer said that the losses comprised eight events at an estimated cost of $174 million, in addition to unfavourable reserve re-estimates of prior reported catastrophe losses.
Hurricane Michael, which made landfall in the Florida Panhandle on October 10, drove 78% of Allstate’s catastrophe losses for the month.
The company’s Michael losses compare with loss estimates of up to $550 million for Berkshire Hathaway, $500 million for AIG, $175 million for Zurich, $120 million for AXIS, and $120 million for Progressive.
Analysts have predicted that Allstate could see particularly heavy losses over the fourth quarter of 2018 due to its exposure to both Hurricane Michael and the recent wildfires in California.
Credit Suisse estimated that Allstate could incur losses of $645 million for the wildfires alone, while Keefe Bruyette & Woods (KBW) forecast a $604 million loss.
