Allstate’s estimated pretax catastrophe losses for July hover around the $253 million mark, the latest high number in monthly warnings issued by the property/casualty insurer.
Allstate explained in an Aug. 18 disclosure that 16 events actually cost it $269 million pretax for the month, but that was partially offset by favorable reserve re-estimates of previously reported catastrophe losses.
After tax, estimated catastrophe losses for July reached $164 million, Allstate said.
It has been a rough year for property/casualty insurers in terms of escalating catastrophe losses. Overall, severe weather and the resulting high insurance losses produced a 26.6 percent plunge in U.S. property/casualty insurers’ net income during the 2016 first quarter, according to a recent industry study from the Property Casualty Insurers Association of America and ISO, a Verisk Analytics business.
The issue has also been of worldwide concern. Global insured losses from natural catastrophes and manmade disasters during the 2016 first half hit $31 billion, according to Swiss Ri’s latest sigma report. Insured losses from natural and man-made catastrophes rose 51 percent compared to the same period in 2015, and economic (non-insured) losses grew by 38 percent.
But Allstate has been particularly hard hit. The insurer reported pretax catastrophe losses of $827 million in its 2016 first quarter. Allstate’s pretax catastrophe losses landed at a whopping $633 million in April, $202 million in May and $216 million in June.
Allstate’s 2016 second-quarter net income dropped to $271 million versus $355 million over the same period last year, a factor driven largely by higher catastrophe losses.