Allstate cat losses at $685m in November
US personal lines insurer Allstate Corporation has estimated catastrophe losses for the month of November 2018 at $685 million, pre-tax ($541 million, after-tax), driven by the Camp and Woolsey fires in California.
Catastrophe losses occurring in November comprised six events at an estimated cost of $679 million, pre-tax ($536 million, after-tax), plus unfavourable reserve re-estimates of prior reported catastrophe losses.
For October, Allstate had estimated catastrophe losses of $202 million, pre-tax ($160 million, after-tax), driven by hurricane Michael.
Two wildfires in the state of California, the Camp and Woolsey Fires, created significant loss of life and property and Allstate is helping customers rebuild their lives providing gross insurance payments of over $1.2 billion, despite reducing policies in force in California by approximately 50 percent over the last ten years.
Allstate’s net losses in November related to the Camp and Woolsey Fires are estimated at $670 million, pre-tax ($529 million, after-tax), and reflect the impact of reinsurance recoveries and reinstatement premiums.
“It’s time to address the impact that more severe weather is having on Americans instead of fighting about climate change,” said Tom Wilson, CEO of Allstate. “This year there have been approximately 7,500 wildfires in California, hurricanes Florence and Michael and a swath of severe weather across the US, putting our customers in danger and at risk of losing their homes and hard-earned money. We are grateful for the support of first responders and government officials in dealing with these events. It is now time to come up with longer term solutions, such as ensuring power lines are properly maintained, homes have natural fire barriers and building codes reflect increased severe weather,” Wilson noted.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Brazil reinsurance market placed on negative outlook by AM Best
AXIS hires senior cyber underwriter from Markel
Fires, explosions cause largest commercial claims: AGCS
