According to Allstate, catastrophe losses in the first quarter of 2023 will total $1.69 billion, pre-tax, with losses of $1.17 billion, or $927 million after tax, in March alone.
“Catastrophe losses for March events were estimated at $1.26 billion, related to 10 events, with approximately 75% of the losses related to three wind events, partially offset by favorable reserve re-estimates for prior events,” the insurer writes.
Allstate reported in February that catastrophe losses for the month totaled $211 million, up from $307 million in January.
The Allstate brand implemented 7.6% auto rate increases across 10 locations in March, resulting in a total brand premium impact of 0.5%.
“Allstate continued to implement significant auto insurance rate actions as part of our comprehensive plan to improve profitability,” said Jess Merten, Chief Financial Officer of The Allstate Corporation.Rate increases for Allstate brand auto insurance have resulted in a premium impact of 1.7% since the beginning of the year, raising annualized written premiums by approximately $454 million.Furthermore, the California Department of Insurance recently approved our latest Allstate brand auto insurance rate increase filing of 6.9%, which we anticipate implementing in April and making effective in June 2023.”
Allstate reports that unfavorable prior year reserve re-estimations, excluding catastrophes, totaled $27 million in the first quarter, with $23 million attributed to commercial insurance, primarily related to exiting business.
Beginning with the next quarter, the company will only disclose quarterly prior-year reserve re-estimations, excluding catastrophes, if they are material.