Hurricane Michael Leads Allstate to $202M in Losses During October

The Allstate Corp. announced estimated catastrophe losses for the month of October 2018 of $202 million, pretax ($160 million, after-tax).

Source: Daily Herald & Reinsurance News | Published on November 16, 2018

Allstate catastrophe losses

Catastrophe losses occurring in October comprised eight events at an estimated cost of $174 million, pretax, plus unfavorable reserve re-estimates of prior reported catastrophe losses. Hurricane Michael, which made landfall on Oct. 10, accounted for $136 million, pretax, or 78 percent of October event catastrophe losses.

Hurricane Michael, which made landfall in the Florida Panhandle on October 10, drove 78% of Allstate’s catastrophe losses for the month.

The company’s Michael losses compare with loss estimates of up to $550 million for Berkshire Hathaway, $500 million for AIG, $175 million for Zurich, $120 million for AXIS, and $120 million for Progressive.

Analysts have predicted that Allstate could see particularly heavy losses over the fourth quarter of 2018 due to its exposure to both Hurricane Michael and the recent wildfires in California.

Credit Suisse estimated that Allstate could incur losses of $645 million for the wildfires alone, while Keefe Bruyette & Woods (KBW) forecast a $604 million loss.