Allstate estimates $748 million in monthly catastrophe losses

Allstate ($ALL) estimated August catastrophe losses at $748 million before tax, or $591 million after tax. The estimate covers 21 events, with a single wind-and-hail event accounting for approximately half of the total. The disclosure provides a new measure of weather-related claims pressure on the insurer rather than a complete picture of monthly profitability.

Combined catastrophe losses for July and August reached approximately $1.43 billion before tax and $1.13 billion after tax. Those figures do not include September and should not be treated as the final third-quarter total. Catastrophe estimates can also change as claims are developed and settled. The update does not, by itself, show a quarterly net loss because it is not a full earnings statement incorporating premiums, investment income and other expenses.

Sources:

• Allstate — monthly catastrophe-loss release, PR Newswire