Allstate Announces March 2022 and First Quarter 2022 Catastrophe Losses, Prior Year Reserve Reestimates and Implemented Auto Rates
The Allstate Corporation reported estimated catastrophe losses of $227 million for March, with a total of $462 million for Q1 2022, attributed mainly to tornadoes and wind events in Texas. The company noted ongoing inflationary pressures affecting loss reserve estimates, leading to $160 million in unfavorable reserve reestimates. In response, Allstate increased auto insurance rates by an average of 9.8% across 15 locations in March, aiming to address inflation's impact on loss costs.
- Implemented average rate increases of 9.8% for Allstate brand auto insurance across 15 locations in March.
- Increased auto insurance written premiums by approximately 6.5% over six months.
- Estimated catastrophe losses of $227 million in March and $462 million in Q1 2022.
- Unfavorable non-catastrophe prior year reserve reestimates of $160 million primarily due to increasing severity in auto damage and bodily injury.
Inflationary trends continue to adversely impact both current and prior report year incurred severity and loss reserve estimates. As a result, beginning with this month’s release, we are further expanding reporting transparency by disclosing quarterly non-catastrophe prior year reserve reestimates (favorable or unfavorable) in the release issued for the final month of each quarter. For the first quarter of 2022, unfavorable non-catastrophe prior year reserve reestimates totaled approximately
“Given the ongoing loss-cost impacts of the current inflationary environment, Allstate has increased the magnitude of auto rate increases we expect to implement throughout 2022. In March, Allstate brand implemented rate increases averaged
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