Allstate Says Q3 Catastrophe Losses Were $1.2 Billion

Allstate Says Q3 Catastrophe Losses Were $1.2 Billion

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Allstate Corp. today reported September catastrophe losses of $317 million and total catastrophe losses for the third quarter of about $1.2 billion pretax.

Seventeen events in September resulted in catastrophe losses of about $357 million, partially offset by favorable reserve re-estimates for prior events. About 80% of the losses were related to two wind and hail events, the Northbrook, Illinois-based insurer said.

Allstate’s catastrophe losses for Q3 2022 were $763 million as it recorded a net loss applicable to common shareholders of $694 million and a combined ratio of 111.6.

Allstate provided additional information to its investors prior to its Nov. 2 post-market earnings release for Q3. The company said unfavorable prior year reserve re-estimates were $166 million, excluding catastrophes, with about $84 million related to Allstate Protection and $82 million attributable to a run-off Property-Liability annual reserve review.

Updating its push to raise rates, Allstate also said its brands implemented auto rate increases of 4.5% in 9 locations during September. The insurer implemented increases of 7% across 5 locations in August.

“Allstate continued to implement significant auto and homeowners insurance rate actions as part of our comprehensive plan to improve profitability,” said Jess Merten, chief financial officer, in a statement.

Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 9.5%, which are expected to raise annualized written premiums by approximately $2.46 billion, and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 9.5%, which are expected to raise annualized written premiums by approximately $971 million,” Merten added.

Topics
Catastrophe
Profit Loss

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