With North America’s 2024 hurricane season generating $110 billion in overall losses and $49 billion in insured losses, Allstate Corp. reported $184 million in pretax catastrophe losses for July tied to 19 wind and hail events – a significant drop from the prior year. Allstate also estimated the after-tax impact at $145 million.
For the current annual aggregate period of its catastrophe bonds, Allstate’s cumulative pretax losses now total $2.174 billion following the July tally.
July saw no hurricane landfalls. As of Aug. 21, Hurricane Erin remained offshore while tropical storm-force winds and storm surges affected North Carolina and Virginia’s coastlines.
In July 2024, Allstate recorded $587 million in losses from 20 events, including an estimated $226 million from Hurricane Beryl’s Texas landfall.
The National Oceanic and Atmospheric Administration (NOAA) recorded 18 named storms in the Atlantic basin during 2024, each with winds of at least 39 mph; 11 became hurricanes, five were major with winds over 111 mph, and five made continental US landfall. On Aug. 7, NOAA’s updated forecast projected 13-18 named storms, including two to five major hurricanes, through Nov. 30.
Allstate also released updates on its insurance portfolio. Automobile policies in force stood at 25.2 million, unchanged from June and up 0.6% year over year. Homeowners policies reached 7.6 million, slightly higher than the prior month and 2.2% higher than the previous year. Commercial lines policies continued their decline, down 32% from the prior year to 172,000.
Earlier this year, Allstate completed the $2.0 billion sale of its employer benefits business to StanCorp Financial Group Inc. (The Standard) and expects combined proceeds of $3.25 billion from this and the previously announced $1.25 billion sale of its group health business to Nationwide Mutual Insurance Co. – which management said allows focus on personal property liability and protection services.
What are your thoughts on Allstate’s strategy and the impact of this hurricane season on insurers? Share your opinion in the comments.
