Allstate News

Update: Allstate Estimates Catastrophe Losses of $1 Billion in June, $2.7 Billion in Q2

Allstate Corp. announced estimated catastrophe losses for the month of June of $1.01 billion, or $799 million, after-tax. June’s month catastrophe losses include 18 events estimated at $1.13 billion, with approximately 60% of the losses related to four wind and …

Allstate Announces May Catastrophe Losses, Auto Rate Hikes

Allstate Corp. today released estimated catastrophe losses for the month of May of $885 million or $699 million, after-tax. There were a dozen events in May causing $893 million in catastrophe losses, Allstate said, but about 70% of losses were …

Climate Change and Homeowners’ Insurance Are on a Collision Course

A summer that has already seen water crises and wildfire smoke is rapidly becoming an inflection point in the pitched battle between climate change and the price of homeowners’ insurance in the US. American International Group Inc., which has already …

State Farm’s California Halt Reflects Overall Poor Underwriting Experience, Ratings Agency Says

State Farm’s announcement last week that the carrier was no longer writing new personal or business property/casualty policies in California “reflects the poor underwriting experience for California homeowners’ writers,” a ratings agency said on Wednesday. Fitch Ratings issued a statement …

Fitch Downgrades Allstate’s IFS Ratings to ‘A’

Citing declines in statutory capital and poor underwriting results in personal auto, Fitch Ratings has downgraded the insurer financial strength ratings of Allstate P/C insurance subsidiaries to “A” (Strong) from “A+.” Fitch has also downgraded Allstate’s holding company ratings, including …

Allstate Posts Loss With ‘Exceptionally’ High Catastrophe Costs

Allstate Corp. posted a bigger first-quarter loss than analysts expected as higher premiums failed to offset rising auto costs and soaring catastrophe losses. The company reported a $342 million loss on an adjusted basis for the period, compared to profit …

After Nonrenewals, Castle Key Files 53.5% Increase for Remaining Fla. Condo Policies

Two months after Allstate announced that a Florida subsidiary would non-renew 33,000 condominium policies, the company has filed for a 53.5% average rate increase. Castle Key Indemnity Co., which as of year-end 2022 held some 287,000 policies in Florida, making …

Credit Outlook for Allstate’s Florida Unit is Negative, Reflects Deteriorated Surplus

The AM Best financial rating firm’s tepid outlook for Allstate’s Florida subsidiaries, Castle Key Insurance Co. and Castle Key Indemnity Co., has raised new questions about the subsidiaries’ and their parent company’s financial picture. AM Best last week posted a …

Allstate: $307M in January Cat Losses and Keeps the Auto Rate Hikes Coming

Allstate Corp. said it estimated catastrophe losses for the month of January of $307 million, or $243 million after-tax from nine events primarily in Texas and California. Catastrophe losses for the January events were estimated at $309 million, partially offset …

Why Not Go Direct on Homeowners, Allstate CEO Asks

When Allstate’s chief executive officer looks at potential growth opportunities for personal lines insurers, he sees an untapped part of the homeowners insurance market—customers that will buy home insurance online. Speaking at the Bank of America U.S. Insurance Conference yesterday, …