Allstate Corp. said estimated catastrophe losses for the month of January were $277 million.
The cost is $180 million after tax, the personal lines insurer said.
Catastrophe losses were from six events at an estimated cost of $271 million, pre-tax, plus unfavorable reserve re-estimates of prior reported catastrophe losses, according to the statement.
The insurer said one of the events met the definition of a winter freeze catastrophe in one region of the country but not in other regions due to the amount of claim counts. Non-catastrophe losses in these other regions were $39 million, pre-tax, which will be reflected primarily in the homeowners combined ratio and the homeowners underlying combined ratio that excludes catastrophe losses and prior year reserve re-estimates.
A “catastrophe” is defined as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or an event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event.
Was this article valuable?
Here are more articles you may enjoy.