Allstate Announces August 2017 Catastrophe Loss Estimate
NORTHBROOK, Ill., September 21, 2017 – The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses, net of reinsurance recoveries, for the month of August 2017 of $593 million, pre-tax ($385 million after-tax). Catastrophe losses occurring in August comprised 6 events at an estimated net cost of $591 million, pre-tax, plus unfavorable reserve reestimates of prior reported catastrophe losses. Allstate previously announced $181 million, pre-tax ($118 million after-tax), in estimated catastrophe losses for the month of July 2017, bringing estimated catastrophe losses for the months of July and August 2017 to $774 million, pre-tax ($503 million after-tax).
Hurricane Harvey made landfall in Texas on Friday, August 25, 2017. Estimated gross catastrophe losses, excluding homeowners flood, totaled $576 million, pre-tax, which will be reduced by $23 million in anticipated reinsurance recoveries for a net estimated loss of $553 million. Hurricane Harvey estimated losses include approximately 55% related to auto coverages. We incurred estimated losses and expenses of $53 million not covered by our reinsurance related to commercial insurance, auto protection contracts and loss adjusting expenses in excess of our reinsurance allowances. Given the complexity of this event, we may experience a higher level of uncertainty in our estimates due to the inability of our customers to gain access to their homes and autos and submit claims. Hurricane Irma occurred in September and is not included in our reported estimates.