Allstate Announces January 2025 Catastrophe Losses and Policies in Force

Rhea-AI Summary

Allstate (NYSE: ALL) has reported estimated catastrophe losses of $1.08 billion ($849 million after-tax) for January 2025. The losses primarily stemmed from three events, with approximately $1.07 billion specifically related to California wildfires.

The California wildfire event estimate includes reinsurance reinstatement premiums and an estimated California FAIR Plan assessment, while being net of estimated reinsurance recoveries of $1.40 billion.

Positive

• Reinsurance coverage mitigated losses with $1.40 billion in estimated recoveries

Negative

• Substantial catastrophe losses of $1.08 billion ($849 million after-tax) in January 2025
• California wildfires caused $1.07 billion in losses
• Additional costs from reinsurance reinstatement premiums and FAIR Plan assessment

Insights

Insurance Industry Analyst

The January 2025 catastrophe losses represent a significant financial event for Allstate, with several important implications for investors and the insurance sector. The $1.08 billion pre-tax loss ($849 million after-tax) from California wildfires demonstrates the escalating climate-related risks facing property insurers.

The reinsurance recovery of $1.40 billion highlights two critical aspects:

• Allstate's robust risk management strategy effectively transferred significant exposure to reinsurers
• The magnitude of the recovery suggests the company's reinsurance program is properly structured for large-scale events

The California FAIR Plan assessment inclusion is particularly noteworthy as it signals potential market stress in California's insurance landscape. This could lead to:

• Increased pressure on insurers to reevaluate their California exposure
• Potential premium rate adjustments in high-risk areas
• Greater scrutiny from regulators regarding market stability

The timing of these losses in January, typically not peak wildfire season, raises concerns about year-round wildfire risk exposure. This could accelerate the industry-wide trend of reassessing risk models and pricing strategies, particularly in wildfire-prone regions.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of January of $1.08 billion or $849 million, after-tax.

Catastrophe losses included three events with approximately $1.07 billion related to the California wildfires. The California wildfire event estimate includes reinsurance reinstatement premiums, an estimated California FAIR Plan assessment and is net of estimated reinsurance recoveries of $1.40 billion.

Allstate Protection policies in force are as follows:

Allstate Protection Policies in Force (1)
(in thousands)		January 31, 2025		December 31, 2024		January 31, 2024		Jan. 31, 2025 v Dec. 31, 2024		Jan. 31, 2025 v Jan. 31, 2024
Auto		24,835		24,936		25,155		(0.4) %		(1.3) %
Homeowners		7,521		7,511		7,341		0.1 %		2.5 %
Other personal lines		4,866		4,870		4,850		(0.1) %		0.3 %
Commercial lines		204		213		280		(4.2) %		(27.1) %
Total		37,426		37,530		37,626		(0.3) %		(0.5) %
(1) Policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Lender-placed policies are excluded from policy counts because relationships are with the lenders.

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/20250220945653/en/

Nick Nottoli

Media Relations

(847) 402-5600



Allister Gobin

Investor Relations

(847) 402-2800

Source: The Allstate Corporation

FAQ

How much did Allstate (ALL) lose from catastrophes in January 2025?

Allstate reported catastrophe losses of $1.08 billion ($849 million after-tax) in January 2025.

What caused Allstate's (ALL) catastrophe losses in January 2025?

The majority of losses ($1.07 billion) were caused by California wildfires, part of three catastrophic events during the month.

How much reinsurance recovery did Allstate (ALL) receive for January 2025 catastrophes?

Allstate's estimated reinsurance recoveries amounted to $1.40 billion for the California wildfire events.

What additional costs did Allstate (ALL) face from the January 2025 California wildfires?

Allstate faced additional costs including reinsurance reinstatement premiums and an estimated California FAIR Plan assessment.