Allstate reports $220m September pre-tax cat losses, taking aggregate year to $3.37bn

US insurer Allstate has reported a smaller $220 million in pre-tax catastrophe losses for the month of September 2026, which has lifted the total across the current annual aggregate risk period for its catastrophe bonds to $3.372 billion.

September saw Allstate’s reported catastrophe losses decline considerably from recent months.

Which has helped to slow down the run-rate for catastrophe losses over the annual aggregate year for Allstate’s catastrophe bonds, which began in April. However, as we’ve highlighted before, not all of these cat losses will qualify to erode the cat bond aggregate retentions.

Allstate started the new annual aggregate risk period that its Sanders Re program catastrophe bonds and aggregate excess of loss reinsurance are subject to, with $870 million of pre-tax catastrophe losses in April 2026.

Allstate then reported a much lower $289 million in May, followed by $563 million in pre-tax losses for June, an additional $682 million for July, then another significant month of loss impacts for August at $748 million in pre-tax catastrophe losses.

Now, the sixth month in the annual aggregate risk period for Allstate’s cat bonds sees the insurer reporting $220 million of pre-tax cat losses, $173 million after tax, for September.

Which takes the pre-tax reported catastrophe loss tally across the risk period to-date to $3.372 billion.

The third-quarter of 2026 has been particularly heavy in catastrophe loss terms for Allstate, with the three-month period generating a combined $1.65 billion in pre-tax losses, or $1.3 billion, after-tax.

Allstate currently has annual aggregate reinsurance protection from one cat bond tranche, the $150 million Class B tranche of notes issued through its Sanders Re III Ltd. (Series 2023-1) catastrophe bond sponsorship.

For the current annual risk period, which began April 1st 2026, those notes attach at $4.78 billion of losses, then cover a share up to exhaustion at $5.28 billion for Allstate, providing their protection across all US states except Florida.

But, those Class B tranche of cat bond notes are subject to a $50 million per-event deductible, which means only cat loss events that result in $50 million or greater of losses will qualify to erode the retention sitting beneath their attachment.

As a result, it’s not possible to estimate where Allstate’s annual aggregated catastrophe losses sit under the catastrophe bond attachment, but the costly third-quarter has certainly increased the erosion of the deductible.

In addition, we reported earlier this year that as part of its 2026 reinsurance renewal, Allstate purchased a new $1 billion aggregate excess of loss reinsurance arrangement, which attaches high up at $8.5 billion of losses.

It’s important to remember that this new $1 billion of aggregate reinsurance limit only features a smaller $1 million event deductible. Given which, it is safe to assume that a significant majority of Allstate’s catastrophe losses for covered events are expected to qualify to erode the retention beneath this reinsurance layer, although a meaningful proportion of the attachment deductible will still remain available at this time.

View details of every catastrophe bond ever sponsored by Allstate here.