Allstate’s pre-tax catastrophe losses for Q2’26 reach $1.72bn

US insurer Allstate has announced an estimated pre-tax catastrophe loss burden for the month of June 2026 of $563 million. But the second-quarter 2026 total has now risen to $1.72 billion, which is a fairly heavy start for the annual aggregate year for the company’s catastrophe bonds.

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

Then following a relatively low month of catastrophe losses in May, at $289 million pre-tax, Allstate’s total pre-tax cat losses then rose to $1.16 billion,

Now, combined with June’s $563 million, Allstate’s total catastrophe losses for Q2 2026 are $1.72 billion, or $1.36 billion, after-tax. This is a slight decline from last year, where Allstate reported estimated catastrophe losses of $1.99 billion, or $1.57 billion after tax, for the second quarter of 2025.

June has typically always been one of the months which sees higher catastrophe losses reported by Allstate, given it often features a number of severe and convective weather events.

In 2025, the insurer reported $619 million of pre-tax losses; in 2024 the firm reported a relatively low $230 million in pre-tax losses; and in 2023, it was $1.13 billion.

Consequently, Allstate’s $563 million in pre-tax catastrophe losses ($445 million, after-tax) for June 2026 is slightly below the recent average.

As a reminder, Allstate currently has annual aggregate protection from only 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 new annual risk period, those notes attach at $4.78 billion of losses, running across a share to $5.28 billion for the insurer and covers losses across all US states except Florida.

In addition, the notes are also subject to a $50 million per-event deductible, which means only catastrophe losses of $50 million or greater qualify to erode the retention sitting beneath their attachment.

As we always explain, it’s impossible for us to know how much of the second-quarter catastrophe losses have qualified under the terms of Allstate’s aggregate Sanders Re catastrophe bonds given the $50 million per-event deductible in-force within their coverage terms.

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

However, it’s important to remember, that this new $1 billion of aggregate reinsurance limit only features a much smaller $1 million event deductible, which means that the majority of Allstate’s catastrophe losses for covered events are expected to qualify to erode the retention beneath this reinsurance layer, it is assumed.

This means only an as-yet-unknown portion of Allstate’s $1.72 billion Q2 2026 pre-tax losses will actually qualify towards eroding the cat bond retention, while more of it likely erodes the retention for the excess-of-loss reinsurance.

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