Allstate Q4 estimated catastrophe losses $68M, pre-tax

The Allstate Corporation announced fourth quarter estimated catastrophe losses, prior year reserve reestimates and implemented rates. Allstate’s estimated catastrophe losses were below the $150M reporting threshold for December 2023. Total catastrophe losses for the fourth quarter were $68M, pre-tax. Unfavorable prior year reserve reestimates, excluding catastrophes, totaled $199M in the fourth quarter, with approximately $148M related to personal auto, including costs for claims in litigation. During the month of December, the Allstate brand implemented auto rate increases of 16.5% across 15 locations, resulting in total brand premium impact of 5.0%, which includes the rate increases approved in December by the Departments of Insurance in California, New York and New Jersey. “Allstate continued to make progress on our comprehensive plan to improve profitability. In 2023, rate increases for Allstate brand auto insurance resulted in a premium impact of 16.4%, which are expected to raise annualized written premiums by approximately $4.27B and rate increases for Allstate brand homeowners insurance have resulted in a premium impact of 11.3%, which are expected to raise annualized written premiums by approximately $1.16B,” said Jess Merten, Chief Financial Officer of The Allstate Corporation.