Allstate reveals huge Hurricane Helene losses
Allstate reveals huge Hurricane Helene losses | Insurance Business America
Catastrophe & Flood
Allstate reveals huge Hurricane Helene losses
Update includes implemented rates
Catastrophe & Flood
By
Terry Gangcuangco
The Allstate Corporation has reported its estimated catastrophe losses for September 2024, totaling $889 million before tax or $702 million after tax.
A significant portion of the figure – $630 million pre-tax – is attributed to the impact of Hurricane Helene. For the entire third quarter, catastrophe losses reached $1.70 billion, or $1.35 billion after tax. Year-to-date through September, Allstate’s catastrophe losses amounted to $4.55 billion pre-tax or $3.60 billion after tax.
In addition to the losses, Allstate conducted its annual review of its run-off property-liability reserves during the third quarter. The assessment resulted in unfavorable reserve reestimates of $58 million, or $46 million after-tax.
Notably, the insurer also implemented rate increases for its Allstate brand auto insurance. The adjustments led to a 2.9% premium impact in Q3 and a cumulative 6.3% for the year. The rate hikes included approvals from insurance regulators in New York, New Jersey, and Texas.
As previously reported, the approved prices will affect around 350,000 insureds across California. Documents filed by Allstate indicate that the premium changes will vary widely, with some seeing hikes as steep as 650%, while others could experience decreases of up to 57%.
The San Francisco Chronicle, which first covered the upcoming adjustment, highlighted that the last notable increase was in 2021 when Homesite Insurance received approval for a 38.2% hike. According to the publication, Fresno, Madera, and Mariposa counties will see the biggest jumps.
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