Allstate says severe weather events in Texas and the Midwest account for the majority of its $350 million in catastrophe losses in May 2020.
Northbrook, Illinois-based Allstate Corp. has estimated catastrophe losses for the month of May of $350 million, pre-tax ($277 million, after-tax). The insurer’s May cat losses are significantly lower than the more than $600 million estimated for April 2020.
Catastrophe losses occurring in May stemmed from eight events at an estimated cost of $346 million, pre-tax ($273 million, after-tax), plus unfavorable prior period reserve re-estimates. Four severe weather events which included rain, wind and hail, primarily impacting Texas and the Midwest, accounted for approximately 80% of May estimated catastrophe losses.
Allstate previously announced $632 million, pre-tax ($499 million, after-tax), in estimated catastrophe losses for April 2020, bringing estimated catastrophe losses for the months of April and May 2020 to $982 million, pre-tax ($776 million, after-tax).
Approximately 55% of April’s estimated catastrophe losses were due to two severe wind and hail events impacting roughly half of the states, Allstate said.
Source: Allstate Corp.
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