Allstate Corporation has reported that despite the impact of several catastrophe events during the month of July, losses were more than offset by the income it generated thanks to PG&E subrogation recoveries during the same period.
July’s catastrophic events led to losses of US$145 million, pre-tax (US$115 million, after-tax). Catastrophic events during the period included Hurricane Hanna and two severe wind and hail weather events that accounted for roughly 65% of the company’s estimated losses for the month. There was also US$29 million worth of catastrophe losses, pre-tax (US$23 million, after-tax), from favourable prior period catastrophe reserve re-estimates.
However, Allstate enjoyed generated income of US$334 million, pre-tax (US$264 million, after-tax) in July. Both PG&E Corporation and Pacific Gas and Electric Company reached a settlement with Allstate and other insurance claimants over the 2017 Northern California wildfires and the 2018 Camp Fire – fires that claimants argued PG&E had an indirect hand in causing.
In July 2020, Allstate recorded the recoveries it had received, totalling US$450 million, pre-tax (US$356 million, after-tax), net of expenses and reinsurance adjustments.
