The Allstate Corp. announced that its catastrophe losses related to Hurricanes Charley, Frances, Ivan and Jeanne, which struck portions of Florida, the southeastern seaboard, and other parts of the United States during the third quarter, are estimated to be approximately $1.06 billion after-tax ($1.64 billion pre-tax) and $1.53 per diluted share after-tax, net of recoveries from the Florida Hurricane Catastrophe Fund (FHCF).
This estimate includes losses on personal lines auto and property policies and net losses on commercial policies. Total catastrophe losses for the third quarter are estimated to be approximately $1.11 billion after-tax ($1.71 billion pre-tax) and $1.59 per diluted share after-tax. Estimated third quarter 2004 net income and operating income per diluted share are $0.09 and $0.08, respectively.
“As of today, more than 205,000 claims have been received from policyholders for damage caused by this unprecedented series of hurricanes. We understand that this is an exceptionally difficult time for residents in Florida, the Southeast and other affected areas of the country. With that in mind, we have sent more than two thousand claims personnel to the region to help our customers restore their lives,” said Chairman, President and CEO Edward Liddy. “While the insurance environment in Florida has changed considerably since 1992’s Hurricane Andrew, the events of this hurricane season will likely result in a new round of examinations of the insurance marketplace in several states. Allstate looks forward to participating in the public discourse.”
The FHCF will reimburse the company’s Florida subsidiaries for 90% of their qualifying personal lines property losses in excess of an estimated combined retention of $312 million per storm, up to an estimated maximum total for this season of $991 million.
The estimated reimbursement to the company’s Florida subsidiaries from the FHCF for qualifying property losses is approximately $172 million. Approximately $819 million of FHCF reimbursement remains available in the event losses from additional hurricanes exceed the retention level of the company’s Florida subsidiaries in this hurricane season.
“Excluding catastrophes, favorable underwriting trends continue in our core business,” added Liddy.
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