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 related to just two wind and hail events. Favorable reserve reestimates for prior events reduced the total loss for May.
For April and May, Allstate said it booked nearly $1.7 billion in pre-tax catastrophe losses. That total for the first two months of the second quarter is equal to the catastrophe losses recorded by Allstate during this year’s first quarter.
Meanwhile, the insurer said it continued hiking auto insurance rates – 9.3% across 15 locations.
“Allstate continued to implement significant auto insurance rate actions as part of our comprehensive plan to improve profitability. Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 4.9%, which are expected to raise annualized written premiums by approximately $1.28 billion,” said Jess Merten, CFO of The Allstate Corporation.
Allstate branded auto insurance rate increases brought in $420 million for May and $828 million for the quarter-to-date ended May 31, 2023. The insurer implemented $454 million and nearly $1.5 billion of rate increases in the first quarter of 2023 and fourth quarter of 2022, respectively.
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