Allstate Corp. reported $777 million in estimated pretax catastrophe losses for May, attributing the figure primarily to three large-scale wind and hail storm events, according to a company statement.
Combined catastrophe losses for April and May totaled $1.37 billion. The insurer said that 11 separate catastrophic events occurred in May, with approximately 70% of the month’s losses concentrated in just three of those events.
Allstate’s year-to-date catastrophe losses have been substantial even prior to the April–May period. In a February update, the company reported $1.17 billion in pretax catastrophe losses across January and February. That figure was driven largely by wildfire activity in Southern California, where dry conditions and strong Santa Ana winds fueled fast-moving fires in the Los Angeles region.
The early-year events prompted activity from the California FAIR Plan and reinforced insurer concerns over risk accumulation in wildfire-exposed regions.
For context, Allstate’s estimated catastrophe losses for the January–February period were initially projected at $1.07 billion, before being revised upward to $1.17 billion. When combined with the most recent April–May figure of $1.37 billion, the total for the first five months of 2025 approaches $2.54 billion.
Broader industry data has reflected heightened storm activity across the United States in 2025. Gallagher Re reported that through May, the US experienced at least eight separate severe convective storm events each generating more than $1 billion in insured losses.
According to data cited by Aon, at least two severe storm systems that swept through the United States in May likely resulted in insured damages amounting to several billion dollars.
While this is slightly below the 13 events recorded by the same point in 2024, the frequency and geographic spread of these events continue to present volatility risks for carriers, particularly in the Midwest and Southern Plains.
Allstate’s catastrophe losses last month were down compared to May of the previous year. In May 2024, the company estimated $1.48 billion in pretax losses from 14 events, with five wind and hail storms making up about 70% of that total. The 2024 storms largely affected Texas, Colorado, and Illinois.
The insurer also disclosed year-over-year changes in policy counts across business lines. As of May, Allstate Protection saw a marginal increase in automobile policies in force. Homeowners policies rose 2.4%, while commercial lines fell 31.8%. Total policies in force increased 0.4% year-over-year to 37,880.
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