Allstate Announces June and Second Quarter 2023 Catastrophe Losses, Implemented Rates and Prior Year Reserve Reestimates

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) announces estimated catastrophe losses for June of $1.01 billion, including 18 events totaling $1.13 billion, with 60% related to wind and hail. Total Q2 catastrophe losses were $2.70 billion. Unfavorable reserve reestimates totaled $181 million, with $148 million related to National General brand and $31 million related to Florida litigation. Auto rate increases of 11.6% were implemented in June, impacting total brand premiums by 2.6%. Allstate expects annualized written premiums to increase by approximately $1.95 billion for auto and $754 million for homeowners insurance.

Positive

• Significant rate increases for auto and homeowners insurance are expected to improve profitability and raise annualized written premiums by billions of dollars, demonstrating a proactive approach to financial management.

Negative

• The substantial catastrophe losses for June and Q2 could have a negative impact on The Allstate Corporation's financial performance, potentially leading to a decrease in stock value.

NORTHBROOK, Ill.,--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of June of $1.01 billion or $799 million, after-tax.

June month catastrophe losses include 18 events estimated at $1.13 billion, with approximately 60% of the losses related to four wind and hail events, partially offset by favorable reserve reestimates for prior events. Total catastrophe losses for the second quarter were $2.70 billion, pre-tax.

Unfavorable prior year reserve reestimates, excluding catastrophes, totaled $181 million in the second quarter with approximately $148 million related to National General brand, primarily driven by personal auto injury coverages, and approximately $31 million related to litigation activity in the state of Florida.

During the month of June, the Allstate brand implemented auto rate increases of 11.6% across 12 locations, resulting in total brand premium impact of 2.6%.

“Allstate continued to implement significant auto and homeowners insurance rate actions as part of our comprehensive plan to improve profitability. Beginning with this month’s release, we are expanding reporting transparency by disclosing implemented homeowners insurance rates monthly. Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 7.5%, which are expected to raise annualized written premiums by approximately $1.95 billion and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 7.4%, which are expected to raise annualized written premiums by approximately $754 million,” said Jess Merten, Chief Financial Officer of The Allstate Corporation. Our implemented rate exhibit for auto and homeowners insurance 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/20230720556602/en/

Al Scott

Media Relations

(847) 402-5600

Brent Vandermause

Investor Relations

(847) 402-2800

Source: The Allstate Corporation

FAQ

What are The Allstate Corporation's estimated catastrophe losses for June?

The estimated catastrophe losses for June are $1.01 billion, including 18 events totaling $1.13 billion, with 60% related to wind and hail.

What were the total catastrophe losses for the second quarter?

The total catastrophe losses for the second quarter were $2.70 billion.

What were the implemented auto rate increases in June?

Auto rate increases of 11.6% were implemented in June, impacting total brand premiums by 2.6%.

How much are the expected annualized written premiums to increase for auto insurance?

Allstate expects annualized written premiums to increase by approximately $1.95 billion for auto insurance.

How much are the expected annualized written premiums to increase for homeowners insurance?

Allstate expects annualized written premiums to increase by approximately $754 million for homeowners insurance.