Allstate Announces New Reinsurance Program for Property, Auto

Allstate Corp. recently announced a partially completed new reinsurance program for its countrywide personal lines property and auto insurance business.

The Northbrook, Illinois-based insurer said it has placed $750 million of a limit of $2 billion in excess of $2 billion of aggregate losses during the one-year contract term, which begins June 1. Allstate plans to market the remainder of the limit this month, except for at least 5 percent that it plans to retain.

The catastrophe aggregate reinsurance agreement, which excludes Florida, applies to Allstate and Encompass brand personal auto and personal property policies.

Allstate continues to have reinsurance coverage in California, Texas, New York, New Jersey and Connecticut. This program was described as an extra layer of protection on top in the states where they already have reinsurance and adds a layer of coverage for the states that they didn’t have coverage in previously.

The countrywide catastrophe aggregate excess reinsurance agreement covers storms named or numbered by the National Weather Service, earthquakes and fires following earthquakes.