Allstate Announces June And Q2 2023 Catastrophe Losses, Implemented Rates And Prior Year Reserve Re-Estimates; Sees Losses For June Of $1.01B Or $799M After Tax
Portfolio Pulse from Happy Mohamed
The Allstate Corporation (NYSE:ALL) announced estimated catastrophe losses for June of $1.01 billion or $799 million after-tax. The losses include 18 events estimated at $1.13 billion, with 60% of the losses related to four wind and hail events. Total catastrophe losses for Q2 were $2.70 billion, pre-tax. Unfavorable prior year reserve reestimates totaled $181 million in Q2. Allstate also implemented auto rate increases of 11.6% across 12 locations in June, expected to raise annualized written premiums by approximately $1.95 billion.
July 20, 2023 | 12:22 pm
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Allstate reported significant catastrophe losses for June and Q2 2023, along with unfavorable prior year reserve reestimates. However, the company has implemented auto rate increases which are expected to raise annualized written premiums.
The reported losses and unfavorable reserve reestimates could negatively impact Allstate's stock price in the short term. However, the implemented auto rate increases, which are expected to raise annualized written premiums, could offset some of this negative impact.
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