Allstate takes big catastrophe hit

Allstate has published its estimates of catastrophe losses for January.

In a release, the insurance giant said: “The Allstate Corporation announced estimated catastrophe losses for the month of January of $276 million, or $218 million after tax.

“Estimated January catastrophe losses of $325 million were primarily driven by two events that comprised approximately 80% of the losses, partially offset by favorable reserve re-estimates for prior events.”

In the same announcement, Allstate reiterated its ongoing push for rate increases as part of the company’s insurance profit improvement plan.

Chief financial officer Jess Merten noted: “During the month of January, rate increases for Allstate brand auto insurance resulted in a premium impact of 1.4%, which are expected to raise annualized written premiums by approximately $363 million, and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 0.3%, which are expected to raise annualized written premiums by approximately $40 million.

“Implemented rate increases and inflation in insured home replacement costs resulted in a 12.1% increase in homeowners insurance average gross written premium in January 2024 compared to the prior year.” 

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