The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of June of $1.01 billion or $799 million, after-tax.
June month catastrophe losses 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 re-estimates for prior events. Total catastrophe losses for the second quarter were $2.70 billion, pre-tax.
Unfavorable prior year reserve re-estimates, excluding catastrophes, totaled $181 million in the second quarter with approximately $148 million related to National General brand, primarily driven 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% across 12 locations, resulting in total brand premium impact of 2.6%.
Said Chief Financial Officer Jess Merten, “Allstate continued to implement significant auto and homeowners insurance rate actions as part of our comprehensive plan to improve profitability. Beginning with this month’s release, we are expanding reporting transparency by disclosing implemented homeowners insurance rates monthly. Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 7.5%, which are expected to raise annualized written premiums by approximately $1.95 billion and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 7.4%, which are expected to raise annualized written premiums by approximately $754 million.”
ALL shares leaped $2.60, or 2.5%, to $108.46.
