Allstate hit with massive losses

Allstate hit with massive losses | Insurance Business America

Allstate hit with massive losses

Insurance giant Allstate has today revealed a huge catastrophe loss estimate for the month of October 2018.

The firm has announced estimated catastrophe losses of $202 million, pre-tax, ($160 million, after-tax), for the month. The significant losses stemmed from eight separate events at an estimated cost of $174 million, pre-tax, which jumps up to $202 million due to unfavorable reserve re-estimates of prior reported catastrophe losses.

The main loss culprit was Hurricane Michael, which made landfall on October 10 and left a trail of destruction in its wake. Michael was the strongest storm on record in the Florida Panhandle, and was the fourth-strongest landfalling hurricane in the US, in terms of wind speed.

Hurricane Michael alone is estimated to have caused Allstate losses of $136 million, pre-tax, making up 78% of the month’s significant catastrophe losses.

Unfortunately for Allstate, and other major US insurers, there has been no respite in November with regards to potential catastrophe losses. The state of California is currently battling some of the most-deadly wildfires in recent history. Insurance losses are expected to be significant.