Allstate Reports May Pretax Catastrophe Losses Of $1.4 Billion

By Chad Hemenway of Insurance Journal

Allstate Corp. on Thursday reported May pretax catastrophe losses of about $1.4 billion.

The Northbrook, Illinois-based insurer said 14 events contributed to nearly $1.5 billion in catastrophe losses for May, with 70% attributable to five wind and hail events mostly in the states of Texas, Colorado, and Illinois.

A year ago Allstate recorded pretax catastrophe losses for May of about $885 million.

Allstate reached its $150 million threshold to report catastrophe losses in May, as it did in April when the company announced estimated catastrophe losses of $494 million from 11 events.

Losses for May were about $1.1 billion after tax, Allstate said. Total year-to-date pretax catastrophe losses were about $2.6 billion, the insurer added.

The insurer’s catastrophe losses for the first quarter fell 56.8% to $731 million.

Second quarter 2023 financial results for Allstate included net catastrophe losses of $2.7 billion, resulting in a net loss for the period of $1.4 billion.

With monthly catastrophe losses, the insurer had also been giving monthly updates on implemented home and auto insurance rate increases.

The practice ended with the March report.

Competitor Progressive late last week said severe storms mostly in Texas and the Midwest caused about $722 million in net catastrophe losses in May.