Allstate's catastrophe losses for April reach new high

Allstate’s catastrophe losses for April reach new high | Insurance Business America

Catastrophe & Flood

Allstate’s catastrophe losses for April reach new high

The firm logged 11 events, with 80% attributed to wind, hail, or tornado

Catastrophe & Flood

By
Kenneth Araullo

Allstate reported an estimated $494 million in catastrophe losses for April, marking its highest monthly loss this year.

The company attributed $491 million of these losses to 11 events, with approximately 80% resulting from four wind, hail, or tornado events. The total also includes claims reserve re-estimates, Allstate stated.

As per AM Best, Aon reported that insurers may have faced billions of dollars in losses due to severe convective storms that affected central US states between April 25 and April 30. Gallagher Re estimated that insured losses from storms between April 25 and April 28 could exceed $1 billion.

Allstate’s net income for the first quarter reached $1.19 billion, a significant increase from a $346 million net loss in the same period the previous year. The company estimated $343 million in pretax catastrophe losses from March events, bringing the total for the first quarter to $731 million.

Underwriting entities of Allstate Corp. hold a Best’s Financial Strength Rating ranging from A+ (Superior) to B (Fair).

Earlier in April, Allstate noted that its estimated catastrophe losses for March totaled $328 million pre-tax, or $259 million after-tax. Allstate also reported that total catastrophe losses for the first quarter amounted to $731 million before tax.

Despite the losses, Allstate announced that it is planning on stepping back into California to insure once again, but with one major condition involved.

“If the regulations were in effect today, we would begin selling new homeowner insurance policies tomorrow,” senior vice president of government relations for Allstate Gerald Zimmerman said in a public hearing on April 23.

“Let me repeat that: As soon as we can use catastrophe modeling and incorporate the net cost of reinsurance into our rates, we will be open to business in nearly every part of California,” he reiterated.

What are your thoughts on this story? Please feel free to share your comments below.