Allstate reveals catastrophe losses

The Allstate Corporation has announced its estimated catastrophe losses for September.

The insurance giant estimated September catastrophe losses at $317 million, or $250 million after tax.

Catastrophe losses for the month include 17 events estimated at $257 million, with about 80% of the losses related to just two wind and hail events, Allstate said. However, the losses were partially offset by favorable reserve reestimates for prior events.

Allstate estimated total catastrophe losses for the third quarter at $1.18 billion, pre-tax.

Unfavorable prior-year reserve reestimates, excluding catastrophes, were $166 million in Q3. approximately $84 million of that was related to Allstate Protection, while $82 million was attributable to the run-off property-liability annual reserve review, Allstate said.

“All other Allstate Protection reserve reestimates were favorable $11 million,” the insurer said in a news release.

Allstate also implemented auto insurance rate increases of 4.5% in nine locations during September. The hikes resulted in a total brand premium impact of 0.9%.

“Allstate continued to implement significant auto and homeowners insurance rate actions as part of our comprehensive plan to improve profitability,” said Jess Merten, chief financial officer for the Allstate Corporation. “Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 9.5%, which are expected to raise annualized written premiums by approximately $2.46 billion, and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 9.5%, which are expected to raise annualized written premiums by approximately $971 million.

“Implemented rate increases and inflation in insured home replacement costs resulted in a 12.4% increase in homeowners insurance average gross written premium in September 2023 compared to the prior year.”

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