Allstate Announces March and First Quarter 2023 Catastrophe Losses, Implemented Auto Rates and Prior Year Reserve Reestimates

Targeted News Service (Press Releases)

NORTHBROOK, Illinois, April 21 (TNSres) -- Allstate, a property and casualty insurance company, issued the following news release on April 20, 2023:

The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of March of $1.17 billion or $927 million, after-tax.

Catastrophe losses for March events were estimated at $1.26 billion, related to 10 events, with approximately 75% of the losses related to three wind events, partially offset by favorable reserve reestimates for prior events. Catastrophe losses for the first quarter totaled $1.69 billion, pre-tax.

During the month of March, the Allstate brand implemented auto rate increases of 7.6% across 10 locations, resulting in total brand premium impact of 0.5%.

"Allstate continued to implement significant auto insurance rate actions as part of our comprehensive plan to improve profitability. Since the beginning of the year, rate increases for Allstate brand auto insurance have resulted in a premium impact of 1.7%, which are expected to raise annualized written premiums by approximately $454 million," said Jess Merten, Chief Financial Officer of The Allstate Corporation. "In addition, the California Department of Insurance recently approved our latest Allstate brand auto insurance rate increase filing of 6.9%, which we expect to implement in April and be effective in June 2023." Our implemented auto rate exhibit has been posted on allstateinvestors.com.

Unfavorable prior year reserve reestimates, excluding catastrophes, totaled $27 million in the first quarter with $23 million attributed to commercial insurance, primarily related to business that is being exited. Beginning next quarter, we will only disclose quarterly prior year reserve reestimates, excluding catastrophes, if material.