21 September 2017Insurance

Allstate estimates August cat losses at $593m

Personal lines property/casualty insurer The Allstate Corporation said on Sept. 21 that it estimates its catastrophe losses, net of reinsurance recoveries, for the month of August 2017 at $593 million, pre-tax.

After tax the losses are expected at $385 million.

Catastrophe losses occurring in August comprised 6 events at an estimated net cost of $591 million, pre-tax, plus unfavourable reserve reestimates of prior reported catastrophe losses.

Allstate had previously announced $181 million, pre-tax, or $118 million after-tax, in estimated catastrophe losses for the month of July 2017. This brings the estimated catastrophe losses for the months of July and August 2017 to $774 million, pre-tax, or $503 million after-tax.

Allstate was affected by Hurricane Harvey which made landfall in Texas on Friday, August 25, 2017. Estimated gross catastrophe losses, excluding homeowners flood, totalled $576 million, pre-tax, which will be reduced by $23 million in anticipated reinsurance recoveries for a net estimated loss of $553 million.

Hurricane Harvey estimated losses include approximately 55 percent related to auto coverages. Allstate incurred estimated losses and expenses of $53 million not covered by our reinsurance related to commercial insurance, auto protection contracts and loss adjusting expenses in excess of our reinsurance allowances. Given the complexity of this event, Allstate may experience a higher level of uncertainty in its estimates due to the inability of its customers to gain access to their homes and autos and submit claims, according to the statement.

Hurricane Irma occurred in September and is not included in the reported estimates.

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

Kanye West denies all Lloyd’s counterclaims in $10m lawsuit

Towergate’s new holding Ardonagh sees profitability rise in H1

New technology can help insurers verify photographic evidence

Markel expands equine team with MS Amlin hire

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
29 August 2017   Primary insurers will face the largest effect from Harvey, with regionally focused carriers most vulnerable given their geographic concentrations, Moody’s said in an Aug. 28 research note.
Insurance
29 August 2017   Loss estimates from Hurricane Harvey continue to vary widely as analysts and risk modelling agencies attempt to assess the impact from the storm and ongoing flooding in the state of Texas. Estimates range from $20 billion at the upper end to the low billions though these exclude flood losses.