Allstate Announces February 2023 Catastrophe Losses and Implemented Auto Rates

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) reported estimated catastrophe losses of $211 million for February, equivalent to $167 million after tax. Total losses from January and February reached $518 million pre-tax. The company faced nine significant events, mainly from wind and rain, though prior reserve reestimates provided some offset. Additionally, Allstate implemented auto insurance rate increases averaging 7.6% across 10 locations in February, projected to raise annualized written premiums by $127 million.

Positive

• Implemented auto insurance rate increases averaging 7.6%, expected to raise annualized written premiums by $127 million.

Negative

• Estimated catastrophe losses for February at $211 million after-tax, indicating significant operational impacts.
• Total catastrophe losses for January and February reached $518 million pre-tax.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of February of $211 million or $167 million, after-tax.

Catastrophe losses for February events were estimated at $241 million, related to nine events primarily from wind and rain that were geographically widespread, partially offset by favorable reserve reestimates for prior events. Catastrophe losses for January and February totaled $518 million, pre-tax.

“Allstate continued to implement significant auto insurance rate actions in response to inflationary increases to loss costs. During the month of February, the Allstate brand implemented auto rate increases of 7.6% across 10 locations, resulting in total brand premium impact of 0.5% which are expected to raise annualized written premiums by approximately $127 million,” said Jess Merten, Chief Financial Officer of The Allstate Corporation. Our implemented auto rate exhibit has been posted on 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/20230316005461/en/

Al Scott

Media Relations

(847) 402-5600

Mark Nogal

Investor Relations

(847) 402-2800

Source: The Allstate Corporation

FAQ

What are Allstate's estimated catastrophe losses for February 2023?

Allstate's estimated catastrophe losses for February 2023 are $211 million after-tax.

How much did Allstate's catastrophe losses total for January and February 2023?

Allstate's total catastrophe losses for January and February 2023 reached $518 million pre-tax.

What auto insurance rate changes did Allstate implement in February 2023?

In February 2023, Allstate implemented auto insurance rate increases averaging 7.6% across 10 locations.

What is the expected impact of Allstate's rate increases on premiums?

The rate increases are expected to raise Allstate's annualized written premiums by approximately $127 million.