NORTHBROOK, Ill., July 20, 2023 – Allstate Corporation (NYSE: ALL) today announced estimated catastrophic losses for the month of June of $1.01 billion, or $799 million, after taxes.
Catastrophic losses for the month of June include 18 events estimated at $1.13 billion, with approximately 60% of the losses related to four wind and hail events, partially offset by favorable reserve reestimates for prior events. Total catastrophe losses for the second quarter were $2.70 billion, before taxes.
Prior year unfavorable reserve reestimates, excluding catastrophes, totaled $181 million in the second quarter with approximately $148 million related to the National General brand, driven primarily by personal auto injury coverages, and approximately $31 million related to litigation activity in the state of Florida.
During the month of June, the Allstate brand implemented auto rate increases of 11.6% at 12 locations, resulting in a total brand premium impact of 2.6%.
“Allstate continued to take significant actions on auto and homeowners insurance rates as part of our comprehensive plan to improve profitability. Starting this month, we are expanding reporting transparency by releasing monthly homeowners insurance rates implemented. Since the beginning of the year, rate increases for Allstate-brand auto insurance have resulted in a premium impact of 7.5%, which is expected to increase annualized written premiums by approximately $1.95 billion, and rate increases for Allstate-brand homeowners insurance have resulted in a 7.4% premium impact, which is expected to increase annualized written premiums by approximately $754 million,” said Jess Merten, Chief Financial Officer of The Allstate Corporation. Our schedule of implemented rates for auto and homeowners insurance has been posted on allstateinvestors.com.
Financial information, including important announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.
forward-looking statements
This press release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to current or historical facts and can be identified by the use of words such as “plans”, “seeks”, “expects”, “will”, “should”, “anticipates”, “estimates”, “intends”, “believes”, “likely”, “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements turn out to be inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements can be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section of our most recent annual report on Form 10-K. Forward-looking statements are as of the date they are made, and we do not undertake any obligation to update or revise any forward-looking statement.
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