The Allstate Corporation has estimated catastrophe losses for the month of June at $1.01 billion or $799 million, after-tax, bringing total catastrophe losses for Q2 to $2.7 billion, pre-tax.
According to Allstate, the June month catastrophe losses included 18 events estimated at $1.13 billion, with approximately 60% of the losses related to four wind and hail events, partially offset by favourable reserve reestimates for prior events.
This number, combined with April’s estimate of $799 million ($631 million after-tax) and May’s $885 million ($699 million after-tax), brought the total catastrophe losses for Q2 to $2.7 billion, pre-tax.
Combining catastrophe loss estimates for both Q1 and Q2, total H1 losses amount to $4.39 billion, pre-tax.
Allstate noted that unfavourable prior year reserve reestimates, excluding catastrophes, totalled $181 million in Q2 with approximately $148 million related to National General brand, primarily driven by personal auto injury coverages, and approximately $31 million related to litigation activity in the state of Florida.
In June, the Allstate brand implemented auto rate increases of 11.6% across 12 locations, resulting in total brand premium impact of 2.6%.
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.
“Beginning with this month’s release, we are expanding reporting transparency by disclosing implemented homeowners insurance rates monthly.
“Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 7.5%, which are expected to raise annualized written premiums by approximately $1.95 billion and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 7.4%, which are expected to raise annualized written premiums by approximately $754 million.”
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