U.S. credit card issuers, burned by a series of data breaches at major retailers such as Home Depot, have stepped up their timetable for issuing high-tech cards.
NORTHBROOK, Ill., Nov. 28, 2012 /PRNewswire/ --The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of October 2012 of $1.08 billion, pre-tax and net of reinsurance. Sandy was the largest of five October catastrophe events.
Pre-tax estimates of Sandy catastrophe losses are shown in the following table.
($ in millions)
Total, gross of reinsurance
Total, net of reinsurance
The total gross loss estimate by state is 66% in New York, 20% in New Jersey and 14% in other states. Approximately $340 million of claim payments have been made as of November 26, 2012. Autos represent approximately 40% of the total gross losses, with 78% in New York, 19% in New Jersey and 3% in other states.
Loss estimates are generally based on claim adjuster inspections and the application of historical loss development factors to the extent we have been able to complete inspections in areas impacted by Sandy. Our loss estimates for Sandy are calculated in accordance with the coverage provided by our policies. Our homeowners policies specifically exclude coverage for losses caused by flood, but generally provide for coverage for physical damage caused by wind or wind-driven rain. Therefore, our homeowners estimates do not include estimates for losses caused by flood. Auto policyholders generally have coverage for physical damage due to flood if they have purchased optional auto comprehensive coverage.
Our catastrophe reinsurance program comprises several agreements. For a first event, our nationwide reinsurance agreement (which excludes New Jersey and Florida) effectively covers 95% of personal lines property and auto catastrophe losses up to $4.225 billion with Allstate retaining the first $750 million in qualifying losses. Our New Jersey agreement comprises three contracts with two contracts effectively covering 63% of personal lines property catastrophe losses up to $550 million with Allstate New Jersey retaining the first $150 million in qualifying losses, and the third contract effectively covering 32% of losses up to $465 million and 42% of losses between $465 million and $665 million with Allstate New Jersey retaining the first $165 million in qualifying losses. New Jersey auto losses are not covered by any of our reinsurance agreements. Our Pennsylvania agreement covers 95% of personal lines property catastrophe losses in excess of $100 million up to $200 million. We expect losses from Sandy will be contained within the first layer of the nationwide reinsurance agreement. We currently expect minimal recovery under the New Jersey reinsurance agreement and do not expect any recovery under the Pennsylvania reinsurance agreement. For detailed specifics of our catastrophe reinsurance program, please see our 2011 Form 10-K or the Reinsurance Update on the Quarterly Investor Info page of www.allstateinvestors.com.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Allstate branded insurance products (auto, home, life and retirement) and services are offered through Allstate agencies, independent agencies, and Allstate exclusive financial representatives, as well as via www.allstate.com and 1-800 Allstate®, and are widely known through the slogan "You're In Good Hands With Allstate®.
Forward-Looking Statements and Risk Factors
This news release contains forward-looking statements about catastrophe losses. These statements are based on our estimates and assumptions that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Management believes the estimated impact of catastrophe losses, including net loss reserves, are appropriately established and recorded based on available facts, information, laws and regulations. However, actual results may differ materially from those projected in the forward-looking statements in this news release and from the amounts currently recorded for a variety of reasons, including the following:
We assume no obligation to update any forward-looking statements as a result of new information or future events or developments.
SOURCE The Allstate Corporation