Allstate reports December 2019 pre-tax catastrophe losses of $25m

US insurance company The Allstate Corporation has reported estimated catastrophe losses for the month of December 2019 of $25 million, pre-tax ($20 million, after-tax), bringing estimated catastrophe losses for Q4 2019 to $295 million, pre-tax ($233 million, after-tax).

In December, Allstate announced a Transformative Growth Plan, which included a decision to phase out the use of the Esurance brand trade name. This decision resulted in a $51 million, pre-tax charge ($40 million, after-tax) for impairment of the Esurance trade name intangible asset from the 2011 acquisition. This amount will reduce net income but will be excluded from adjusted net income.

Allstate previously disclosed that it will recognise a charge of $37 million for original issuance costs as a result of the redemption of fixed rate non cumulative perpetual preferred stock on October 15, 2019, which will be included in preferred stock dividends, and reflected in both net income and adjusted net income