Allstate reveals catastrophe losses

Company also shares impact of rate increases

Allstate reveals catastrophe losses

Catastrophe & Flood

By Kenneth Araullo

The Allstate Corporation has disclosed its estimated catastrophe losses for March, totaling $328 million pre-tax, or $259 million after-tax.

The company detailed that these losses stemmed from six significant events, with one major hail event accounting for approximately 80% of the March losses. These figures were partially offset by favorable reserve re-estimates related to prior events.

Allstate also reported that total catastrophe losses for the first quarter amounted to $731 million before tax.

In terms of pricing adjustments, Allstate implemented rate increases for its auto insurance, which impacted premiums by 0.9% in March and 2.4% for the year to date. Similarly, homeowners’ insurance rates rose, impacting premiums by 0.7% for the month and 3.4% year-to-date.

Rate increases, coupled with inflation in insured home replacement costs, drove the homeowners’ insurance average gross written premium up by 11.9% in March 2024 compared to the same period last year.

Comparison with February figures

In its report for February, the insurance giant noted: “The Allstate Corporation announced that estimated catastrophe losses were below the $150 million reporting threshold for February 2024.”

In the same month, rate increases for Allstate brand auto insurance led to a premium impact of 0.1% and 1.5% year-to-date. Similarly, rate increases for Allstate brand homeowners’ insurance resulted in a premium impact of 2.4% for February and 2.7% year-to-date.

Additionally, implemented rate increases, combined with inflation in insured home replacement costs, contributed to a 12.4% increase in the average gross written premium for homeowners’ insurance in February 2024 compared to the previous year.

Elsewhere for the insurance giant, Allstate’s new study revealed that customers who utilize the Drivewise feature within the insurer’s app exhibit significantly safer driving habits.

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