US primary insurer Allstate has announced estimated catastrophe losses for the month of September of $317 million and third quarter cat losses of $1.18 billion.
The primary insurer’s September catastrophe losses include 17 events estimated at $357 million, with approximately 80% of the losses related to two wind and hail events, partially offset by favourable reserve estimates for prior events.
Last month, Allstate estimated catastrophe losses for August 2023 at $641 million, of which approximately half were related to the Maui wildfire. The insurer’s cat losses for July were estimated at $247 million, June’s at $1.01 billion, and May’s at $885 million.
Allstate has also announced that unfavourable prior year reserve reestimates, excluding catastrophes, totalled $166 million in Q3, with approximately $84 million related to Allstate Protection and $82 million attributable to the Run-off Property-Liability annual reserve review.
Allstate Protection was driven by $95 million related to personal auto for the National General brand. All other Allstate Protection reserve reestimates were favourable $11 million, the insurer added.
For September the company also implemented auto rate increases of 4.5% across 9 locations, resulting in a total brand premium impact of 0.9%.
Jess Merten, Chief Financial Officer of The Allstate Corporation, said: “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 9.5%, which are expected to raise annualised written premiums by approximately $2.46 billion, and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 9.5%, which are expected to raise annualised written premiums by approximately $971 million.
“Implemented rate increases and inflation in insured home replacement costs resulted in a 12.4% increase in homeowners insurance average gross written premium in September 2023 compared to the prior year.”
The post Allstate estimates cat losses for September of $317m appeared first on ReinsuranceNe.ws.
