Northbrook, Illinois, April 20, 2023 – The Allstate Corporation (NYSE: ALL) today reported an estimated catastrophic loss for the month of March of $1.17 billion, or $927 million after taxes.
Disaster losses for the March events were estimated at $1.26 billion, related to 10 events, with approximately 75% of the losses related to the three wind events, partially offset by favorable reserve reassessments of the earlier events. Total disaster losses in the first quarter were $1.69 billion, before taxes.
During March, the Allstate brand implemented vehicle price increases of 7.6% across 10 locations, resulting in a 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, increases in Allstate brand auto insurance rates have impacted premiums by 1.7% and are expected to raise annual written premiums by about $454 million, said Jes Merten, Allstate’s chief financial officer. “In addition, the California Department of Insurance recently approved a 6.9% hike in the last Allstate brand auto insurance rate, which we expect to be implemented in April to be effective in June 2023.” The implemented auto pricing show is posted on allstateinvestors.com.
The prior year unfavorable reserve estimate, excluding catastrophes, totaled $27 million in the first quarter with $23 million attributed to commercial insurance, primarily related to businesses exiting. And beginning in the next quarter, we will only disclose the prior year reserve re-estimate quarterly, except for catastrophes, if material.
Financial information, including material announcements about Allstate, is routinely posted on www.allstateinvestors.com.
Forward-looking statements
This press release contains “forward-looking statements” that predict results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and can be identified by their use of words such as “plans,” “seeks,” “expects,” “will,” “should.” “,” Expects “,” Estimates “,” Intends “,” Believes “,” Likely “,” Targets” and other words have similar meanings. We believe that these statements are based on reasonable estimates, assumptions and plans. However, if estimates or The assumptions or plans underlying the forward-looking statements are inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements.Factors that could cause actual results to differ materially from those expressed can be found in Forward-looking statements or contained in forward-looking statements in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section of our most recent annual report on Form 10-K. Forward-looking statements are as of the date they are made, and we assume no obligation to update or Review any forward-looking statement.
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