Allstate Corp. said pre-tax catastrophe losses for the first quarter are expected to be about $1.7 billion, with about $1.3 billion occurring during the month of March.
Losses in March were attributed to 10 events with 75 percent of losses related to three wind events, Allstate said in a statement. After favorable reserve re-estimates for prior events, catastrophe losses are for March are estimated to be about $1.2 billion.
Allstate used its latest news release to further update its efforts to increase auto insurance rates. During March, Allstate said it implemented rate increases of 7.6 percent across 10 locations.
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“Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 1.7 percent, which are expected to raise annualized written premiums by approximately $454 million,” said Jess Merten, Allstate’s chief financial officer. “In addition, the California Department of Insurance recently approved our latest Allstate brand auto insurance rate increase filing of 6.9 percent, which we expect to implement in April and be effective in June 2023.”
Allstate Corp. will release first -quarter earnings after the market closes on May 3, with a conference call to follow the morning of May 4.
Catastrophe losses in Q4 2022 were $779 million as Allstate reported a loss of $310 million for the quarter.