Allstate (ALL) Sees Pretax Catastrophe Losses of $827M for Q1

In the wake of severe hailstorms in the southern United States, The Allstate Corporation (NYSE: ALL) announced estimated catastrophe losses for the month of March 2016 of $638 million, pre-tax ($415 million after-tax), and an estimated $827 million, pre-tax ($538 million after-tax), for first quarter 2016. Catastrophe losses occurring in the first quarter comprised 17 events at an estimated cost of $830 million, pre-tax, partially offset by a minor reserve reestimate of prior reported catastrophe losses.

"Our purpose is to protect our customers from life's uncertainties and severe hailstorms like this are why Allstate exists," said Thomas J. Wilson, Allstate chairman and chief executive officer. "These storms, one of which ranks as the largest hailstorm to ever impact Allstate, produced unusually heavy damage to both homes and cars given the size of hail and wind speeds. We have deployed over 1,200 claim professionals to assist local Allstate agencies in handling the more than 39,000 claims reported to date to ensure our policyholders can start the recovery and rebuilding process as quickly as possible."

Two severe hail events, primarily impacting the state of Texas in March, accounted for two-thirds of the catastrophe losses for the quarter. The larger of the two storms occurred on March 23, 2016, extended from Texas to Florida and produced violent thunderstorms with 2.5" hail and 65 mph winds in Texas, and 1" hail and similar winds in Florida. The smaller of the two events occurred during morning rush hour on March 17, 2016 and produced hail as large as 2.75" in Texas and 1.75" as it moved east into Louisiana. The cities of Fort Worth and Arlington, Texas, saw the greatest amount of damage from the storm. Allstate's claim volume has been heaviest in Collin, Dallas and Tarrant counties where the Allstate brand has estimated market share greater than its statewide average.

Allstate expects to file a current report on Form 8-K with the Securities and Exchange Commission announcing first quarter 2016 results at or after 4:15 p.m. ET on Wednesday, May 4.

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