Allstate’s catastrophe losses for April reach new high | Insurance business America
The company logged 11 events, 80% of which were due to wind, hail or tornado
Disaster and flood
By Kenneth Araullo
Allstate reported estimated catastrophe losses of $494 million for April, marking its largest monthly loss this year.
The company attributed $491 million of those losses to 11 events, with approximately 80% coming from four wind, hail or tornado events. According to Allstate, the total also includes re-estimates of loss reserves.
According to AM Best, Aon reported that insurers may have suffered billions of dollars in losses due to severe convective storms that hit central U.S. states between April 25 and April 30. Gallagher Re estimated that insured losses from storms between April 25 and 28 could be higher than $1 billion.
Allstate’s net income reached $1.19 billion in the first quarter, a significant increase from a net loss of $346 million in the same period last year. The company estimated pretax catastrophe losses from the March events at $343 million, bringing the first quarter total to $731 million.
Allstate Corp.’s underwriting businesses. have a Best’s Financial Strength Rating of A+ (Superior) to B (Fair).
In early April, Allstate announced that estimated catastrophe losses for March totaled $328 million before taxes and $259 million after taxes. Allstate also reported that total catastrophe losses in the first quarter were $731 million before taxes.
Despite the losses, Allstate said it plans to return to California to insure again, but with one serious condition.
“If the regulations were in effect today, we would begin selling new home insurance tomorrow,” Gerald Zimmerman, senior vice president of government relations at Allstate, said at an April 23 public hearing.
“Let me repeat: As soon as we can use catastrophe models and incorporate the net cost of reinsurance into our rates, we will be open for business in almost all parts of California,” he reiterated.
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2024-05-17 14:28:22
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