Allstate Corp. said estimated catastrophe losses for the month of July were $313 million or $247 million, after-tax.
July has 18 events, highlighted by widespread wind and hail storms, with estimated losses of about $349 million. These losses for July were partially offset by favorable reserve reestimates for prior events, Allstate added.
Wind and hail were also to blame for Allstate’s nearly $800 million after tax losses in June. The Northbrook, Illinois-based insurer recorded a second quarter net loss of $1.4 billion, on $2.7 billion in catastrophe losses. Allstate’s property-liability segment combined ratio for Q2 was 117.6 compared to 107.9 a year ago during the period.
Allstate also said it continues to raise auto and homeowners insurance rates. The Allstate brand in July implemented auto rate increases of 8.2% in a dozen locations, and homeowners rate increases of 7.6% in four locations. Allstate’s National General added July rate increases of 5.6% for auto in 19 locations
“Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 8.4%, which are expected to raise annualized written premiums by approximately $2.19 billion, and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 7.8%, which are expected to raise annualized written premiums by approximately $804 million,” said Jess Merten, chief financial officer.
“Implemented rate increases and inflation in insured home replacement costs resulted in a 14.1% increase in homeowners insurance average gross written premium in July 2023 compared to the prior year,” Merten added.
Topics Catastrophe Profit Loss
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