The Allstate Corporation, the second largest U.S. writer of homeowners’ policies, announced that its pre-tax catastrophe losses related to Hurricane Charley are preliminarily estimated to be approximately $425 million.
The amount is “net of recoveries from the Florida Hurricane Catastrophe Fund (FHCF), or $276 million after-tax and $0.40 per diluted share after-tax,” said Allstate. It includes “losses on Florida personal lines auto and property policies, net losses on commercial policies, and a low level of losses experienced in North and South Carolina.”
Concerning its reimbursement, Allstate noted: “Based on recently updated estimates of coverage available from the FHCF for this hurricane season, the FHCF will reimburse the company’s Florida subsidiaries for 90 percent of their personal lines property losses in excess of an estimated retention of $305 million per storm, up to an estimated maximum of $983 million during the season. The estimated reimbursement to the company’s Florida subsidiaries from the FHCF for property losses due to Hurricane Charley is approximately $155 million. Approximately $828 million of FHCF reimbursement is available in the event of additional hurricanes this season that may exceed the retention level of the company’s Florida subsidiaries in this hurricane season.”
“We know that this is a particularly difficult time for residents in Hurricane Charley’s path and hundreds of claims personnel are on the scene helping customers restore their lives,” Chairman, President and CEO Edward M. Liddy stressed.
Allstate said that as of today, “55,600 claims have been received from policyholders of the various Allstate subsidiaries doing business in Florida and elsewhere for damage caused by Hurricane Charley.”
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