Allstate Corp (NYSE:ALL) disclosed an estimated June catastrophe loss of $1.01 billion, or $799 million, after-tax.
The monthly catastrophe losses include 18 events estimated at $1.13 billion, approximately 60% of the losses, related to four wind and hail events, partially offset by favorable reserve reestimates for prior events.
ALL’s Q2 total catastrophe losses stood at $2.70 billion, pre-tax, with unfavorable prior year reserve reestimates (excluding catastrophes) totaling $181 million, primarily driven by personal auto injury coverages and approximately litigation activity in Florida.
“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, CFO.
Price Action: ALL shares are trading higher by 3.50% at $109.49 on the last check Thursday.
