Hurricane Harvey slammed The Allstate Corp. with an estimated $553 million in catastrophe losses in August, the insurer said. More than half related to auto claims.
The pre-tax gross estimate is a bit higher, at $576 million, excluding homeowners flood. To get to the net estimate, Allstate excludes homeowners flood, and said the gross number will be reduced by $23 million in anticipated reinsurance recoveries. About 55 percent of the claims relate to auto coverage.
Allstate said that it incurred $53 million of estimated losses and expenses not covered by its reinsurance related to commercial insurance, auto protection contracts and loss adjusting expenses in excess of its reinsurance allowances. In its statement, the insurer warned it may see a higher level of uncertainty about subsequent hurricane-related catastrophe estimates from the Aug. 25 event “due to the inability of our customers to gain access to their homes and autos and submit claims.”
Hurricane Irma, which hit in September, will be handled in a separate estimate, Allstate said.
Allstate said it dealt with $593 million in pre-tax catastrophe losses in August overall, net of reinsurance recoveries. After tax, the number reaches $385 million, and the total losses cover 6 events.
For July, Allstate reported $181 million in pre-tax catastrophe losses ($118 million after-tax).