Allstate Reports $731M in Q1 Pretax Catastrophe Losses

Allstate Corporation estimated pretax catastrophe losses of $731 million, with $328 million from the month of March.

Six events contributed to the $343 million total for March — before favorable reserve re-estimates brought down the total. One hail event accounted for 80% of losses in March. The total for the first quarter was nearly $1 billion lower than the total during the same period a year ago, the Northbrook, Illinois-based insurer said.

Allstate said last month that its estimated catastrophe losses were below the $150 million reporting threshold. In January, pretax catastrophe losses were $276 million.

Related: Allstate Reverses Q4 Loss With Benefit of Low Cat Losses, Auto Rate Increases

In addition to reporting catastrophe losses, Allstate gives monthly updates on its auto rate increases as it has for the Allstate brand and the National General nonstandard brand on a regular basis since the beginning of 2022. Rate increases for Allstate brand auto insurance resulted in a total brand premium impact of 0.9% for the month of March, or 2.4% year-to-date.

For homeowners, Allstate brand reported that rate increases for Allstate brand resulted in a premium impact of 0.7% for the month of March and 3.4% year-to-date. According to Allstate, implemented rate increases and inflation in insured home replacement costs resulted in a nearly 12% increase in homeowners insurance average gross written premium in March 2024 compared to the prior year.