Allstate estimates $325 million cat losses for January

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The Allstate Corporation has announced estimated catastrophe losses of $325 million for the month of January 2024, primarily driven by two events that comprised approximately 80% of the losses.

Allstate logoThe U.S. primary insurer stated that these losses drop down to pre-tax cat losses of $276 million ($218 million after-tax) for the month of January, after favourable reserve estimates for prior events.

“Allstate continues to pursue rate increases as we execute the auto insurance profit improvement plan and keep pace with loss cost trends. 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,” said Jess Merten, Chief Financial Officer of Allstate.

“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,” Merten noted.

This announcement follows Allstate’s Q4 2023 results where it reported a net income of $1.5 billion, up massively compared to a loss of $303 million in the same quarter of 2022.

Tom Wilson, Chair, President and CEO of Allstate, added that improved underwriting performance and higher investment income reportedly generated an adjusted net income of $1.5 billion in Q4.

The post Allstate estimates $325 million cat losses for January appeared first on ReinsuranceNe.ws.

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