Allstate faces $276m January cat losses; will pursue rate hikes
US property/casualty insurer Allstate has estimated January catastrophe losses of $276 million ($218m after-tax) and anticipates a $363 million increase in annualised written premiums from a 1.4% rate hike in Allstate brand auto insurance.
Allstate said the estimated January catastrophe losses of $325 million were primarily driven by two evets that comprised approximately 80% of the losses, partially offset by favourable reserve re-estimates for prior events.
Jess Merten, chief financial officer of The Allstate Corporation, said: “Allstate continues to pursue rate increases as we execute the auto insurance profit improvement plan and keep pace with loss cost trends.”
Merten added that in January rate increases for Allstate brand auto insurance resulted in a premium impact of 1.4%, which are expected to raise annualised written premiums by approximately $363 million, and rate increases for Allstate brand homeowners' insurance have resulted in a premium impact of 0.3%, which are expected to raise annualised written premiums by approximately $40 million.
Implemented rate increases and inflation in insured home replacement costs resulted in a 12.1% increase in homeowners insurance average gross written premium in January 2024 compared to the prior year.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
