U.S. primary insurer Allstate has announced estimated catastrophe losses for the month of August of $641 million, of which approximately half were related to the Maui wildfire.
The primary insurer’s August catastrophe losses include 18 events, and losses were partially offset by favourable reserve reestimates for prior events.
After this, Allstate’s cat losses for the month fell to $551 million, or $435 million after-tax.
Catastrophe losses for July and August combined are $864 million, pre-tax, said the firm.
For August, Allstate has also announced that it implemented auto rate increases of 7.0% across 5 locations, resulting in a total brand premium impact of 0.2%.
Jess Merten, Chief Financial Officer of The Allstate Corporation, commented, “Allstate continued to implement significant auto and homeowners insurance rate actions as part of our comprehensive plan to improve profitability.
“Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 8.6%, which are expected to raise annualized written premiums by approximately $2.23 billion. Implemented rate increases and inflation in insured home replacement costs resulted in a 13.2% increase in homeowners insurance average gross written premium in August 2023 compared to the prior year.”