Allstate Announces February 2021 Catastrophe Losses

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) reported estimated catastrophe losses of $577 million for February 2021, pre-tax. This includes costs from severe winter conditions, primarily in Texas, which had gross losses of $1.3 billion and net losses of $567 million. January 2021 saw favorable adjustments of $55 million, making Q1 catastrophe losses total $522 million pre-tax. Notably, Allstate surpassed the retention level of its nationwide aggregate reinsurance cover, concluding on March 31, 2021. For further details, visit www.allstateinvestors.com.

Positive

• Favorable prior period reserve reestimates partially offset losses.
• Total estimated catastrophe losses for Q1 2021 are $522 million, pre-tax.

Negative

• February catastrophe losses of $577 million significantly impact financial performance.
• Severe winter freeze resulted in gross losses of approximately $1.3 billion.

The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of February of $577 million, pre-tax ($456 million, after-tax).

Catastrophe losses in February comprised two events at an estimated cost of $590 million, pre-tax ($466 million, after-tax), partially offset by favorable prior period reserve reestimates. The severe winter freeze, primarily impacting Texas, resulted in gross losses of approximately $1.3 billion, with net losses estimated at $567 million, pre-tax ($448 million, after-tax), reflecting anticipated reinsurance recoveries partially offset by reinstatement premiums.

Estimated catastrophe losses for the month of January 2021 were favorable $55 million, reflecting subrogation recoveries related to the 2018 Woolsey wildfire, bringing estimated February quarter-to-date catastrophe losses to $522 million, pre-tax ($412 million, after-tax).

Given these events, Allstate has surpassed the retention level of the nationwide aggregate reinsurance cover, with the annual risk period ending March 31, 2021. For detailed specifics of our catastrophe reinsurance program, please see our Reinsurance Update posted on the Quarterly Results page of www.allstateinvestors.com.

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/20210318005527/en/

FAQ

What were Allstate's estimated catastrophe losses for February 2021?

Allstate's estimated catastrophe losses for February 2021 were $577 million, pre-tax.

What major event caused the losses reported by Allstate in February 2021?

The severe winter freeze, primarily affecting Texas, caused significant losses.

How much did Allstate report in catastrophe losses for January 2021?

Allstate reported favorable estimated catastrophe losses of $55 million for January 2021.

What is the total catastrophe loss reported by Allstate for the February quarter-to-date?

The total catastrophe loss reported by Allstate for the February quarter-to-date is $522 million, pre-tax.

Did Allstate exceed its reinsurance retention level?

Yes, Allstate surpassed the retention level of its nationwide aggregate reinsurance cover.