Allstate Floridian Insurance Company (AFIC) and Allstate Floridian Indemnity Company (collectively Allstate Floridian), subsidiaries of Allstate Insurance Company, a wholly-owned subsidiary of The Allstate Corporation, announced that their combined catastrophe losses related to Hurricanes Charley, Frances, Ivan and Jeanne, which struck portions of Florida during the third quarter, are estimated to be approximately $811 million after-tax ($1.25 billion pre-tax), net of recoveries from the Florida Hurricane Catastrophe Fund (FHCF).
“As of today, more than 145,000 claims have been received from Allstate Floridian policyholders for damage caused during this unprecedented hurricane season. We know that this is an exceptionally difficult time for residents in Florida and more than two thousand claims personnel have been sent to the state to help our customers restore their lives,” said Allstate Floridian Chairman R. J. Young, Jr.
The FHCF will reimburse Allstate Floridian for 90 percent of its 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 Allstate Floridian from the FHCF for personal lines 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 Allstate Floridian in this hurricane season.
“Additionally, at the end of the third quarter management of Allstate Floridian sought from Allstate Insurance Company capital to strengthen AFIC’s cash and financial position. As a result Allstate Insurance Company has contributed $311 million in capital: $175 million through the purchase of a surplus note, $100 million in cash and $36 million through the contribution of the common stock of Allstate Floridian Indemnity Company,” added Young.
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