Allstate reports August catastrophe loss estimate of $593M
Allstate reported estimated catastrophe losses, net of reinsurance recoveries, for the month of August 2017 of $593M, pre-tax. or $385M after-tax. Catastrophe losses occurring in August comprised 6 events at an estimated net cost of $591M, pre-tax, plus unfavorable reserve reestimates of prior reported catastrophe losses. Allstate previously announced $181M, pre-tax - $118 million after-tax -, in estimated catastrophe losses for the month of July 2017, bringing estimated catastrophe losses for the months of July and August to $774M pre-tax, $503M after-tax. Hurricane Harvey made landfall in Texas on August 25. Estimated gross catastrophe losses, excluding homeowners flood, totaled $576M pre-tax, which will be reduced by $23M in anticipated reinsurance recoveries for a net estimated loss of $553M. Hurricane Harvey estimated losses include approximately 55% related to auto coverages. Allstate incurred estimated losses and expenses of $53M not covered by its reinsurance related to commercial insurance, auto protection contracts and loss adjusting expenses in excess of its reinsurance allowances. Allstate claims that given the complexity of this event, it may experience a higher level of uncertainty in estimates due to the inability of customers to gain access to their homes and autos and submit claims. Hurricane Irma occurred in September and is not included in reported estimates.