Allstate Corp. reported estimated pretax catastrophe losses of $1.99 billion for the second quarter of 2025, a decrease from $2.12 billion in the same period last year, according to a company statement.
The insurer attributed $619 million of June's pretax losses to 15 individual events. Approximately 70% of those losses were driven by three severe storm incidents involving wind and hail.
In its latest monthly update, Allstate said total policies in force under its Allstate Protection segment rose 0.6% in June compared to the previous year. Auto insurance policies increased 0.5% to 25.2 million, and homeowners policies climbed 2.3% to 7.6 million.
Earlier in the year, Allstate estimated that catastrophe losses for January and February reached $1.17 billion. These figures included significant impacts from wildfire activity in California, which added to the company’s overall catastrophe exposure entering the second quarter.
The company also recorded $777 million in catastrophe losses in May and $1.37 billion combined across April and May. Similar to June’s results, around 70% of those losses were tied to three large-scale wind and hail events, underscoring a continued pattern of high-frequency severe weather in recent months.
Allstate’s Q1 performance saw contrasting trends in its auto segment. Although policies in force declined by 0.4%, new business applications increased by 31.2% compared to the prior-year quarter. The auto line’s combined ratio improved to 91.3%, which the company attributed to favorable loss cost trends and the release of prior year reserves.
In addition, earned premiums in Allstate’s property-liability segment rose 11.6% during the first quarter, supported by ongoing premium rate increases. The company cited strong customer retention in both auto and homeowners lines as contributing factors to the higher earned premium totals.
Allstate is scheduled to release second-quarter earnings during a conference call on July 31.
What are your thoughts on this story? Please feel free to share your comments below.
