The Allstate Corporation has estimated March catastrophe losses of $925 million pre-tax, driven largely by wind and hail activity, as severe convective storms continue to pressure US personal lines carriers.
The insurer said 15 catastrophe events generated losses during the month, with approximately 80% of the total tied to three major weather events. Total catastrophe losses for the first quarter reached $1.24 billion pre-tax.
The losses highlight the continued earnings volatility created by secondary perils, particularly severe convective storms, which have become one of the most significant drivers of insured losses for US carriers in recent years.
Industry data released this month by the Insurance Information Institute showed severe convective storms generated $51 billion in insured losses in 2025, marking the third consecutive year losses from the peril exceeded $50 billion. The trend has materially altered underwriting assumptions for homeowners and personal property insurers, particularly in hail- and tornado-prone states.
Despite elevated weather losses, Allstate continued to grow policy count across its protection business. Total policies in force increased 2.3% year over year to 38.6 million at March 31.
Auto policies in force rose 2.6% to 25.8 million, while homeowners policies increased 2.5% to 7.7 million.
The figures suggest Allstate remains in measured growth mode after several years of aggressive repricing and underwriting remediation across personal lines. The carrier, like many of its peers, has spent the past several years pursuing significant rate increases to restore personal auto and homeowners profitability amid inflation, weather losses, and reinsurance cost pressure.
The market is now watching whether those pricing actions are sufficient to offset the structurally higher catastrophe load now embedded in US homeowners business.
Analysts have increasingly noted that severe weather is no longer a purely “catastrophe” issue but a recurring attritional earnings drag for many personal lines carriers, forcing changes to underwriting strategy, deductibles, and geographic appetite.
For Allstate, the challenge remains balancing profitable growth with exposure management as it seeks to expand policy count while maintaining pricing discipline in a still-volatile claims environment.
The company has not yet released full quarterly earnings but the catastrophe disclosure provides an early indication that weather losses will remain a significant feature of first-quarter industry results.
