Allstate Announces August 2021 Catastrophe Losses

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) reported estimated catastrophe losses of $876 million for August, or $692 million after tax. Total losses for July and August reached $1.1 billion pre-tax. August losses resulted from 11 events, mainly due to Hurricane Ida, which led to gross losses of approximately $1.4 billion, with net losses estimated at $631 million pre-tax. The company anticipates reinsurance recoveries under its Nationwide Excess Catastrophe Reinsurance Program to mitigate these losses.

Positive

• Anticipated reinsurance recoveries under the Nationwide Excess Catastrophe Reinsurance Program may help offset some of the losses.

Negative

• August catastrophe losses totaled $876 million, significantly impacting financial performance.
• Total catastrophic losses for July and August reached $1.1 billion pre-tax, indicating substantial financial strain.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of August of $876 million or $692 million, after-tax. Catastrophe losses for July and August totaled $1.1 billion, pre-tax.

Catastrophe losses in August comprised 11 events at an estimated cost of $843 million plus unfavorable prior period reserve reestimates. Hurricane Ida impacted 19 states with the majority of losses occurring in Louisiana, resulting in gross losses of approximately $1.4 billion. Net losses are estimated at $631 million, pre-tax ($498 million, after-tax), reflecting anticipated reinsurance recoveries under our Nationwide Excess Catastrophe Reinsurance Program, partially offset by reinstatement premiums.

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements
This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210916005468/en/

Rachel Hill

Media Relations

(847) 402-5600

Mark Nogal

Investor Relations

(847) 402-2800

Source: Allstate Corporation

FAQ

What were Allstate's August catastrophe losses in 2023?

Allstate's estimated catastrophe losses for August 2023 were $876 million, or $692 million after tax.

How much did Hurricane Ida cost Allstate?

Hurricane Ida resulted in gross losses of approximately $1.4 billion for Allstate, with net losses estimated at $631 million pre-tax.

What is the total catastrophe loss for Allstate in July and August 2023?

The total catastrophe loss for Allstate in July and August 2023 was $1.1 billion pre-tax.

What financial aid does Allstate expect from reinsurance?

Allstate anticipates significant reinsurance recoveries under its Nationwide Excess Catastrophe Reinsurance Program to offset losses.