Allstate Corp. reported an estimated $213 million in pretax catastrophe losses for August, driven by 10 separate events. Three wind-and-hail storms accounted for roughly 70% of the total.
The August figure was, however, lower than the same month in 2024, when Allstate booked $272 million in pretax catastrophe losses from 15 events, including a severe hailstorm in Calgary, Alberta.
For the first two months of the third quarter, Allstate’s pretax catastrophe losses are estimated at $397 million, about half of the comparable year-earlier total. The difference reflects the absence of a landfalling hurricane so far in the season, according to earlier disclosures.
The reduced catastrophe losses compared with 2024 could provide short-term relief to Allstate's underwriting results in the third quarter. Lower claims costs may also help offset higher reinsurance pricing that has weighed on carriers across the industry.
However, analysts noted that the absence of a major hurricane so far this season is a key driver, meaning results remain highly exposed to weather activity through the remainder of the year. The industry trend of rising frequency and severity of severe convective storms continues to add volatility to earnings for property/casualty insurers.
Industrywide, losses from August storms are expected to run into the hundreds of millions of dollars. Aon noted that multiple rounds of severe weather struck in mid-August, including storms that swept through the north-central US and the Chicago area.
Despite the claims impact, Allstate continued to expand its property/casualty portfolio. Protection policies in force increased 0.9% year-over-year in August and 0.3% from July. Auto policies grew 1% over the past year, while homeowners' policies rose 2.1%.
Allstate also remains one of the largest US personal lines insurers. In 2024, it ranked as the second-largest writer of homeowners' multiperil coverage with an 8.96% share of direct premiums written, behind State Farm Group’s 18.2%, according to BestLink data. In private passenger auto, Allstate ranked fourth with a 10.2% share, following State Farm (18.9%), Progressive (16.75%) and Berkshire Hathaway’s GEICO (11.63%).
Allstate’s operating companies hold financial strength ratings from A.M. Best ranging from A+ (Superior) to B (Fair). On Sept. 18, shares of Allstate Corp. (NYSE: ALL) traded at $206.20, up 4.54% from the prior close.
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