Allstate Announces Impact of PG&E Recoveries and July 2020 Catastrophe Losses

The Allstate Corporation announced that catastrophe results for July generated income of $334 million, pre-tax ($264 million, after-tax), as PG&E subrogation recoveries more than offset the impact of events in the month.

Source: Allstate | Published on August 21, 2020

Allstate catastrophe losses

As previously announced, PG&E Corporation and Pacific Gas and Electric Company (together “PG&E”) reached a settlement with Allstate and other insurance claimants arising from the 2017 Northern California wildfires and the 2018 Camp Fire. In July 2020, Allstate recorded the recoveries, totaling $450 million, pre-tax ($356 million, after-tax), net of expenses and reinsurance adjustments.

Losses from July catastrophe events were $145 million, pre-tax ($115 million, after-tax), including Hurricane Hanna and two severe wind and hail weather events that accounted for approximately 65% of estimated losses. In addition, there was $29 million, pre-tax ($23 million, after-tax), of favorable prior period catastrophe reserve re-estimates not related to the PG&E recoveries.

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