Allstate Announces August 2024 Catastrophe Losses

Rhea-AI Summary

Allstate (NYSE: ALL) has reported estimated catastrophe losses for August 2024 of $272 million ($215 million after-tax), including favorable reserve reestimates for prior events. The losses encompass 15 events totaling $306 million, with approximately $75 million attributed to a hail event in Calgary, Canada. The Calgary event estimate includes reinsurance reinstatement premiums and is net of anticipated reinsurance recoveries of $225 million.

Catastrophe losses for July and August combined reached $814 million ($643 million after-tax), while the year-to-date total through August stood at $3.67 billion ($2.90 billion after-tax). This information is part of Allstate's routine financial disclosures, which are regularly posted on their investor relations website.

Positive

• Favorable reserve reestimates for prior period events
• Reinsurance recoveries of $225 million for the Calgary hail event

Negative

• August catastrophe losses of $272 million ($215 million after-tax)
• July and August combined catastrophe losses of $814 million ($643 million after-tax)
• Year-to-date catastrophe losses through August of $3.67 billion ($2.90 billion after-tax)

Insights

Financial Analyst

Allstate's August catastrophe losses of $272 million ($215 million after-tax) highlight the ongoing impact of severe weather events on insurers' financials. The $75 million loss from the Calgary hail event, net of $225 million in reinsurance recoveries, demonstrates the effectiveness of Allstate's risk management strategies. However, the $814 million in losses for July and August combined and the staggering $3.67 billion year-to-date figure, could potentially pressure Allstate's profitability and impact its ability to meet full-year earnings expectations. Investors should closely monitor how these losses affect Allstate's combined ratio and overall financial performance in the coming quarters.

Insurance Industry Expert

The frequency and severity of catastrophe events in 2024 are putting significant strain on property and casualty insurers like Allstate. With 15 events in August alone, the industry is facing increased pressure to reassess risk models and potentially adjust pricing strategies. The substantial reinsurance recovery of $225 million for the Calgary event underscores the critical role of reinsurance in managing catastrophe exposure. However, the need for reinsurance reinstatement premiums suggests that Allstate may face higher costs to maintain coverage for future events. This trend could lead to broader industry-wide premium increases and a potential hardening of the reinsurance market.

Climate Risk Analyst

The significant catastrophe losses reported by Allstate in August, particularly the $75 million hail event in Calgary, reflect the growing impact of climate change on the insurance industry. The frequency of severe weather events is increasing, forcing insurers to adapt their risk assessment models and pricing strategies. Year-to-date losses of $3.67 billion indicate a potentially above-average catastrophe year, which could become the new norm. Insurers may need to collaborate more closely with climate scientists to improve predictive models and develop innovative products to address evolving weather-related risks. This trend could also drive increased focus on climate resilience in property development and urban planning.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of August of $272 million or $215 million, after-tax, including favorable reserve reestimates for prior period events.

Catastrophe losses for August include 15 events estimated at $306 million, with approximately $75 million related to a hail event in Calgary, Canada. The Calgary hail event estimate includes reinsurance reinstatement premiums and is net of anticipated reinsurance recoveries of $225 million.

Total catastrophe losses for July and August were $814 million or $643 million, after-tax, and total catastrophe losses for August year-to-date were $3.67 billion or $2.90 billion, after-tax.

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/20240919695231/en/

Nick Nottoli

Media Relations

(847) 402-5600

Allister Gobin

Investor Relations

(847) 402-2800

Source: The Allstate Corporation

FAQ

What were Allstate's (ALL) catastrophe losses for August 2024?

Allstate's estimated catastrophe losses for August 2024 were $272 million, or $215 million after-tax.

How many catastrophe events did Allstate (ALL) experience in August 2024?

Allstate experienced 15 catastrophe events in August 2024, estimated at $306 million in total losses.

What was the impact of the Calgary hail event on Allstate's (ALL) August 2024 losses?

The Calgary hail event accounted for approximately $75 million of Allstate's August 2024 catastrophe losses, net of anticipated reinsurance recoveries of $225 million.

What are Allstate's (ALL) year-to-date catastrophe losses through August 2024?

Allstate's year-to-date catastrophe losses through August 2024 were $3.67 billion, or $2.90 billion after-tax.