Allstate Announces January 2023 Catastrophe Losses and Implemented Auto Rates

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) reported estimated catastrophe losses of $307 million for January, or $243 million after-tax. The losses stemmed from nine significant events, mainly in Texas and California, with total January catastrophe losses estimated at $309 million. Allstate has implemented auto insurance rate increases averaging 9.9% across 13 locations, projected to raise annualized written premiums by approximately $182 million. The company continues to address inflation-related increases in loss costs through these rate adjustments.

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• Implemented auto insurance rate increases averaging 9.9%, projected to raise annualized written premiums by approximately $182 million.

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• Estimated catastrophe losses of $307 million for January, or $243 million after-tax, indicating significant impact from natural disasters.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of January of $307 million or $243 million, after-tax.

Catastrophe losses for January events were estimated at $309 million, related to nine events primarily in Texas and California, partially offset by favorable reserve reestimates for prior events.

“Allstate continued to implement significant auto insurance rate actions in response to inflationary increases to loss costs. During the month of January, the Allstate brand implemented auto rate increases of 9.9% across 13 locations, resulting in total brand premium impact of 0.7% which are expected to raise annualized written premiums by approximately $182 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/20230216005525/en/

Al Scott

Media Relations

(847) 402-5600

Mark Nogal

Investor Relations

(847) 402-2800

Source: The Allstate Corporation

FAQ

What were Allstate's estimated catastrophe losses for January 2023?

Allstate reported estimated catastrophe losses of $307 million for January 2023, or $243 million after-tax.

How much are the expected premium increases due to Allstate's rate adjustments?

The expected premium increases from Allstate's auto rate adjustments are projected to be approximately $182 million annually.

Which states were primarily affected by Allstate's catastrophe losses in January?

The primary states affected by Allstate's catastrophe losses in January were Texas and California.

What percentage increase did Allstate implement for auto insurance rates?

Allstate implemented an auto insurance rate increase of 9.9% across 13 locations.