Insurance

Allstate announces significant catastrophe losses in Q3 2024, driven by hurricane Helene

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The Allstate Corporation (NYSE:ALL) has disclosed substantial catastrophe losses for September 2024, estimating a pre-tax loss of $889 million, which includes $630 million attributed to Hurricane Helene.

After-tax losses for the month stood at $702 million.

Throughout the third quarter, Allstate's total catastrophe losses reached $1.70 billion pre-tax, translating to $1.35 billion after taxes.

From the start of the year through September, the cumulative catastrophe losses have soared to $4.55 billion pre-tax, or $3.60 billion after-tax.

Additionally, Allstate conducted its annual run-off property-liability reserve review during the third quarter, identifying unfavorable reserve reestimates that added $58 million to its expenses, or $46 million after taxes.

In response to escalating costs and risks, Allstate adjusted its pricing strategy.

The insurer implemented rate increases for its Allstate brand auto insurance, impacting premiums by 2.9% in the third quarter and 6.3% year-to-date.

These increases were approved by regulators in key states like New York, New Jersey, and Texas.

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