Allstate estimates August cat losses at $593m
Personal lines property/casualty insurer The Allstate Corporation said on Sept. 21 that it estimates its catastrophe losses, net of reinsurance recoveries, for the month of August 2017 at $593 million, pre-tax.
After tax the losses are expected at $385 million.
Catastrophe losses occurring in August comprised 6 events at an estimated net cost of $591 million, pre-tax, plus unfavourable reserve reestimates of prior reported catastrophe losses.
Allstate had previously announced $181 million, pre-tax, or $118 million after-tax, in estimated catastrophe losses for the month of July 2017. This brings the estimated catastrophe losses for the months of July and August 2017 to $774 million, pre-tax, or $503 million after-tax.
Allstate was affected by Hurricane Harvey which made landfall in Texas on Friday, August 25, 2017. Estimated gross catastrophe losses, excluding homeowners flood, totalled $576 million, pre-tax, which will be reduced by $23 million in anticipated reinsurance recoveries for a net estimated loss of $553 million.
Hurricane Harvey estimated losses include approximately 55 percent related to auto coverages. Allstate incurred estimated losses and expenses of $53 million not covered by our reinsurance related to commercial insurance, auto protection contracts and loss adjusting expenses in excess of our reinsurance allowances. Given the complexity of this event, Allstate may experience a higher level of uncertainty in its estimates due to the inability of its customers to gain access to their homes and autos and submit claims, according to the statement.
Hurricane Irma occurred in September and is not included in the reported estimates.
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