Allstate Corporation has estimated that for the month of May 2020, it saw catastrophe losses of $350 million, pre-tax.
After tax, the insurer’s estimated losses for the month were pegged at $277 million.
The insurer said that catastrophe losses for the month were comprised of eight events, with a total estimated cost of $346 million, pre-tax ($273 million, after tax); the calculation also considered unfavorable prior period reserve re-estimates.
Notably, four severe weather events – which included rain, wind and hail events which mainly affected Texas and the Midwest – accounted for about 80% of the catastrophe losses recorded in May.
Previously, Allstate announced that for the month of April, it saw $632 million, pre-tax ($499 million, after tax) in estimated catastrophe losses. This brings the total amount of estimated catastrophe losses for the months of April and May to $982 million, pre-tax ($776 million, after tax).
In what may be a worrying sign for insurers’ loss estimates going forward, a recent report from reinsurance broking and advisory firm Beach & Associates warned that this year’s hurricane season will see “above average” activity.