In a recent financial update, Allstate disclosed its catastrophe losses for the first quarter (Q1) of 2024, amounting to $731 million pre-tax, a significant reduction from the $1.69 billion reported in Q1 of 2023. The major contributor to these losses in March 2024 was a hail event accounting for approximately 80% of the total $343 million in estimated losses. This single event starkly contrasts with the previous year’s March losses, which were much higher at $1.17 billion.
Despite the high costs from the hail event, Allstate benefited from favorable reestimates of reserves for prior events, which helped mitigate the overall financial impact. March was notably the month with the highest losses in the quarter, far exceeding February’s figures, which did not meet the $150 million reporting threshold.
Furthermore, Allstate implemented rate increases across its insurance products. For auto insurance, a premium impact of 0.9% was noted for March, with a 2.4% increase year-to-date. Homeowners insurance saw a March premium impact of 0.7% and a year-to-date increase of 3.4%. The average gross written premium for homeowners insurance in March 2024 rose by 11.9% compared to the previous year, influenced by both rate increases and inflation in insured home replacement costs.