Allstate Corp. reported $1.04 billion in pretax catastrophe losses for March, bringing the estimated first-quarter losses to $2.2 billion.
According to a company statement, 11 events contributed to the March total, with four large-scale systems involving wind and hail accounting for approximately 80% of the losses.
The company said it exceeded the retention threshold of its annual aggregate reinsurance program for the risk period ending March 31 and expects around $123 million in recoveries, which would reduce the reported figure for March.
In a previous update, Allstate estimated $1.07 billion in losses from the January wildfires in Los Angeles. That estimate includes the company’s projected share of the California FAIR Plan’s $1 billion assessment and $1.4 billion in expected reinsurance recoveries.
Allstate Protection policies in force rose 0.1% year over year to 37.71 million. Growth in homeowners’ policies, up 2.5%, helped offset declines in auto and commercial lines. The company reports policy counts based on insured items rather than individual customers. Lender-placed policies are not included, as they are associated with lender relationships.
In the fourth quarter of 2024, Allstate reported consolidated revenues of $16.51 billion, an increase of 11.3% compared to the same period the previous year. Net income applicable to common shareholders was $1.9 billion, up from $1.46 billion in the fourth quarter of 2023. Adjusted net income rose to $2.06 billion, compared to $1.54 billion a year earlier.
For the full year, Allstate posted net income applicable to common shareholders of $4.55 billion, compared to a net loss of $316 million in 2023. Adjusted net income reached $4.91 billion, up from $251 million the year before.
The property-liability combined ratio for the fourth quarter improved to 86.9 from 89.5 in the prior-year period. For the full year, the combined ratio was 94.3, compared to 104.5 in 2023. The underlying combined ratio, which excludes catastrophe losses and reserve changes from prior years, declined to 83.0 for the quarter and 84.6 for the year, compared to 86.9 and 91.2, respectively, in 2023.
Catastrophe losses in the fourth quarter were $410 million, up from $68 million in the same period a year earlier. For the full year, catastrophe losses totaled $4.96 billion, compared to $5.64 billion in 2023.
