Allstate reveals latest losses

Allstate reveals latest losses | Insurance Business

Allstate reveals latest losses

Allstate Corporation has reported that despite the impact of several catastrophe events during the month of July, losses were more than offset by the income it generated thanks to PG&E subrogation recoveries during the same period.

July’s catastrophic events led to losses of $145 million, pre-tax ($115 million, after-tax). Catastrophic events during the period included Hurricane Hanna and two severe wind and hail weather events that accounted for roughly 65% of the company’s estimated losses for the month. There was also $29 million worth of catastrophe losses, pre-tax ($23 million, after-tax), from favorable prior period catastrophe reserve re-estimates.

However, Allstate enjoyed generated income of $334 million, pre-tax ($264 million, after-tax) in July. Both PG&E Corporation and Pacific Gas and Electric Company reached a settlement with Allstate and other insurance claimants over the 2017 Northern California wildfires and the 2018 Camp Fire – fires that claimants argued PG&E had an indirect hand in causing.

In July 2020, Allstate recorded the recoveries it had received, totaling $450 million, pre-tax ($356 million, after-tax), net of expenses and reinsurance adjustments.