Allstate Announces March and First Quarter 2021 Catastrophe Losses

Rhea-AI Summary

The Allstate Corporation (NYSE: ALL) reported estimated pre-tax catastrophe losses of $252 million for March, resulting in $54 million after-tax and expected reinsurance recoveries. These losses stemmed from six events, with a significant wind/hail event making up about 55% of the losses. Total first-quarter catastrophe losses reached $1.67 billion, mitigated by $1.08 billion in anticipated recoveries, leading to an estimated after-tax loss of $466 million.

Positive

• Anticipated reinsurance recoveries offset $184 million of losses in March.
• Partial offset of first-quarter catastrophe losses by $1.08 billion in recoveries.

Negative

• Estimated pre-tax catastrophe losses for March at $252 million.
• First-quarter losses before reinsurance reached $1.67 billion.

The Allstate Corporation (NYSE: ALL) today announced estimated pre-tax catastrophe losses for the month of March of $252 million, $54 million after-tax and anticipated reinsurance recoveries.

Catastrophe losses in March comprised six events at an estimated cost of $208 million, plus increased prior period reserve estimates of $44 million. One large wind/hail event accounted for approximately 55% of March estimated catastrophe losses. The nationwide aggregate reinsurance cover will offset $184 million of losses.

Losses before reinsurance, subrogation recoveries and taxes for the first quarter 2021 totaled $1.67 billion, and were partially offset by $1.08 billion in anticipated reinsurance and subrogation recoveries. As a result, 2021 first quarter catastrophe losses are estimated to be $466 million, after-tax.

For additional details related to our catastrophe reinsurance program, please see our Reinsurance Update posted on the Quarterly Results page of www.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/20210415005589/en/

FAQ

What were Allstate's estimated catastrophe losses for March 2021?

Allstate reported estimated pre-tax catastrophe losses of $252 million for March 2021.

How much is Allstate expecting to recover from reinsurance?

Allstate anticipates $184 million in reinsurance recoveries to offset March losses.

What are Allstate's first-quarter catastrophe losses for 2021?

For the first quarter of 2021, Allstate's catastrophe losses totaled $1.67 billion.

What was the after-tax effect of Allstate's catastrophe losses in the first quarter?

The first-quarter catastrophe losses resulted in an estimated after-tax loss of $466 million.