allstate

US primary insurer Allstate has reported what some analysts are calling lower than expected catastrophe losses for June 2024, with just $230 million announced pre-tax for the month. But the second-quarter 2024 total has now risen to $2.1 billion, which is a relatively heavy start for the annual aggregate year of its catastrophe bonds.

As anticipated, US primary insurer Allstate has reported a significant month of catastrophe losses for May 2024, with $1.4 billion announced pre-tax, some 58% up on the previous year.

Analysts at BMO Capital Markets are forecasting that US insurance giant Allstate will disclose around $2.65 billion in catastrophe losses for the entire second-quarter of 2024, suggesting the disclosure for the month of May that will be available later this week will be high.

US primary insurer Allstate has begun the new annual aggregate loss year for its catastrophe bonds with a costly $494 million of pre-tax catastrophe losses reported, as severe weather and tornadoes impacted the company.

Allstate has significantly lifted the top of its Nationwide excess catastrophe reinsurance tower to just over $7.9 billion, which is almost a $1 billion increase from the prior year and catastrophe bonds are filling out much of the upper-layers.

At the mid-year renewals, US primary insurance giant Allstate has shrunk its Florida reinsurance tower, and shifted all of its catastrophe bond coverage to the upper-layers of it.

The one Florida focused catastrophe bond sponsored by US insurer Allstate that is considered facing a complete loss of principal after last year’s hurricane Ian has now had its maturity date extended, suggesting the insurers’ ultimate loss for the event has yet to be finalised.

US primary insurer Allstate has brought down the top of its Nationwide excess catastrophe reinsurance tower a little, at its latest renewal, with the program now only extending to $6.924 billion of losses, compared to $7.01 billion at the end of 2022.

Annual aggregate catastrophe bonds sponsored by US primary insurance giant Allstate could come under some pressure, as the firms aggregated annual catastrophe losses across the Sanders Re cat bonds risk period soared to almost $3.67 billion after a heavy March hit from severe storms.

Artemis has tracked the annual aggregate catastrophe losses disclosed by US primary insurance giant Allstate and with the risk period for its aggregate reinsurance and catastrophe bond arrangements running since April 1st last year, appears to have racked up close to $2.5 billion of pre-tax losses by the end of February 2023.