The Allstate Corporation announced estimated pretax catastrophe losses of $328 million for the month of March, bringing total pretax cat losses for the quarter to $731 million.
The first-quarter figure is nearly $1 billion lower than a $1.7 billion total that the carrier reported for first-quarter 2023.
Allstate noted that favorable reserve re-estimates brought down the March total, which was $343 million excluding the takedown. Six events contributed to the $343 million figure, and one—a hail event—accounted for 80 percent of the total.
Allstate also provided a regular monthly recap of auto and homeowners insurance rate hikes, revealing that rate increases for Allstate brand auto insurance resulted in a total brand premium impact of 0.9 percent for the month of March, or 2.4 percent year-to-date. While the figures may seem low compared to a reported impacts of 5.0 percent and 6.9 percent that Allstate for the final month and quarter of 2023, the fourth-quarter 2024 was impacted by significant rate hikes in three big states—California, New York and New Jersey. (The percentages represent the impact in locations where rate changes were implemented during the period as a percent of total brand prior-year premiums written.)
The March and first-quarter 2024 figures are similar to total Allstate brand impact figures shared by Allstate last year for the comparable periods in 2024—0.5 percent of March 2023 and 1.7 percent of first-quarter 2023.
For homeowners, Allstate reported that rate increases for Allstate brand resulted in a premium impact of 0.7 percent for the month of March and 3.4 percent year-to-date. According to Allstate, implemented rate increases and inflation in insured home replacement costs resulted in a 11.9 percent increase in homeowners insurance average gross written premium in March 2024 compared to the prior year.
Source: Allstate