Allstate discloses losses from catastrophes

The latest financial report from The Allstate Corporation reveals significant catastrophe losses for the month of March, totaling $328 million before tax or $259 million after tax. These losses were primarily due to six major events, with a single hail event accounting for 80% of the total losses. However, the company also mentioned favorable reserve re-estimates that helped offset some of these losses.

For the first quarter of the year, Allstate reported total catastrophe losses of $731 million before tax. To mitigate these losses, the company implemented rate increases for auto and homeowners' insurance. Auto insurance premiums saw a 0.9% increase in March and a 2.4% increase year-to-date, while homeowners' insurance premiums rose by 0.7% in March and 3.4% year-to-date. The increase in premiums, combined with inflation in insured home replacement costs, resulted in an 11.9% rise in the average gross written premium for homeowners' insurance in March 2024 compared to the same period last year.

Comparing these figures to the previous month, it was noted that February's catastrophe losses were below the $150 million reporting threshold. In February, rate increases for auto and homeowners' insurance led to smaller premium impacts but still contributed to overall increases in insurance costs. In other news, a recent study by Allstate highlighted the positive impact of using the Drivewise feature within the insurer's app on driving habits.

Customers who utilized this feature were found to exhibit safer driving behaviors, showcasing Allstate's commitment to promoting road safety.