Insurance giant Allstate suffered catastrophic catastrophe losses in April, following a particularly harrowing first quarter this year.
Company data revealed that pre-tax catastrophe losses for the month reached $235 million, bringing the year to date total losses to $1.01 billion. Pre-tax catastrophe losses reached $777 million by the end of March 2017.
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April witnessed 11 catastrophes pounding Allstate’s balance sheets, bringing the year to date total to almost 40 catastrophes so far.
March proved to be a burdensome month as pre-adjusted claims amounted to $526 million.
An extreme Texas hailstorm that descended in March accounted for more than $260 million or 35% of the company’s pre-tax losses for the first quarter.
“And with insurers the size of Allstate reporting estimated catastrophe losses of more than $1 billion in 2017, so far, it’s more than likely that others are experiencing similar rates of attrition, or even higher, which means more insurers calling on their reinsurance providers, as losses aggregate above retention levels,” finance web resource Artemis said in a post.
“The severe weather systems witnessed across parts of the US in the first four-five months of 2017, and the financial impact it’s having on companies as large as Allstate, suggests insurance-linked securities (ILS) capital could be exposed as well,” it concluded.
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