Allstate Announces October 2024 Catastrophe Losses

Rhea-AI Summary

Allstate (NYSE: ALL) reported catastrophe losses of $286 million ($226 million after-tax) for October 2024. This includes $102 million pre-tax losses from Hurricane Milton and unfavorable reserve reestimates of $144 million pre-tax related to Hurricane Helene, primarily affecting Georgia, South Carolina and North Carolina. The company's total catastrophe losses for October year-to-date reached $4.84 billion ($3.82 billion after-tax).

Positive

• None.

Negative

• Significant catastrophe losses of $286M in October 2024
• Additional $144M unfavorable reserve reestimates for Hurricane Helene
• High year-to-date catastrophe losses totaling $4.84B

Insights

Insurance Industry Analyst

The $286 million catastrophe losses for October, coupled with unfavorable reserve reestimates of $144 million for Hurricane Helene, signal ongoing pressure on Allstate's profitability. The year-to-date catastrophe losses of $4.84 billion are particularly concerning, reflecting the increasing frequency and severity of weather-related events. These losses will likely impact Q4 earnings and could necessitate premium rate adjustments to maintain underwriting margins.

The concentration of Hurricane Helene's impact in Georgia, South Carolina and North Carolina highlights Allstate's regional exposure risks. The need to increase loss reserves suggests initial damage assessments were inadequate, which could lead to more conservative future loss estimations and potentially higher premiums in these southeastern markets.

Risk Management Specialist

The escalating catastrophe losses underscore the growing climate-related risks in the property insurance sector. The $4.84 billion year-to-date catastrophe losses represent a significant portion of Allstate's risk capacity and will likely influence their reinsurance strategy and coverage terms for 2024. The additional reserve strengthening for Hurricane Helene indicates potential systemic underestimation of storm impacts, suggesting a need for more robust risk modeling and pricing methodologies.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of October of $286 million or $226 million, after-tax, including $102 million, pre-tax, from Hurricane Milton and unfavorable reserve reestimates of $144 million, pre-tax, related to Hurricane Helene, primarily in Georgia, South Carolina and North Carolina. Total catastrophe losses for October year-to-date were $4.84 billion or $3.82 billion, after-tax.

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/20241121771594/en/

Nick Nottoli

Media Relations

(847) 402-5600

Allister Gobin

Investor Relations

(847) 402-2800

Source: The Allstate Corporation

FAQ

What were Allstate's (ALL) catastrophe losses in October 2024?

Allstate reported catastrophe losses of $286 million ($226 million after-tax) in October 2024.

How much did Hurricane Milton cost Allstate (ALL) in October 2024?

Hurricane Milton resulted in pre-tax losses of $102 million for Allstate in October 2024.

What were Allstate's (ALL) year-to-date catastrophe losses as of October 2024?

Allstate's total catastrophe losses for October year-to-date were $4.84 billion ($3.82 billion after-tax).

How much did Allstate (ALL) increase its Hurricane Helene loss reserves in October 2024?

Allstate increased its Hurricane Helene loss reserves by $144 million pre-tax, primarily affecting Georgia, South Carolina and North Carolina.