The Allstate Corporation has announced estimated gross losses of approximately USD 1.4 billion for the impacts of Hurricane Ida, with the company set to retain USD 631 million, pre-tax (USD 498mn after-tax) of this total thanks to its reinsurance protection.
The U.S. primary insurer notes that Ida impacted 19 states with the majority of losses occurring in the state of Louisiana.
Industry-wide estimates for the storm are hovering around the USD 30 billion mark, so it’s been expected that reinsurers would take a fair share of the loss.
A net loss from Ida of approximately USD 631 million suggests Allstate could be recovering roughly USD 750 million from its reinsurers under its Nationwide Excess Catastrophe Reinsurance Program, although this is partially offset by reinstatement premiums.
For the month of August, Allstate anticipates catastrophe losses of an estimated USD 876 million, pre-tax (USD 692mn after-tax). Cat losses from 11 events account for USD 843 million of the total, plus unfavourable prior year reserve reestimates.
In Q2, Allstate reported sizeable pre-tax cat losses of USD 952 million, which is relatively high for a quarter.
But despite a more muted start to the third-quarter, with July cat losses of just USD 227 million, Hurricane Ida has pushed Allstate’s catastrophe losses for July and August to USD 1.1 billion.