Allstate reveals major losses from Hurricane Helene

Allstate Corporation reported its estimated catastrophic loss for September 2024, which included $889 million before tax or $702 million after tax.

A significant portion of the figure – $630 million in pre-tax income – is due to the impact of Hurricane Helene. For the entire third quarter, catastrophe losses totaled $1.70 billion, or $1.35 billion after tax. For the year through September, Allstate's disaster losses totaled $4.55 billion before tax or $3.60 billion after tax.

In addition to the loss, Allstate made its annual review of its property loan reserves during the third quarter. This assessment resulted in a negative remeasurement of the reserve of $58 million, or $46 million after tax.

Notably, the insurer also took advantage of Allstate's auto insurance rate hike. The adjustment resulted in a 2.9% premium impact in Q3 and a 6.3% year-over-year accrual. The rate increase includes approval by insurance regulators in New York, New Jersey, and Texas.

As previously reported, the approved rates will affect approximately 350,000 insureds across California. Documents filed by Allstate show that premium changes will vary widely, with some seeing a hike of 650%, while others could drop as much as 57%.

The San Francisco Chronicle, which first covered the upcoming adjustment, highlighted that the most significant increase was in 2021 when Homesite Insurance received approval for a 38.2% increase. According to the publication, Fresno, Madera, and Mariposa counties will see the largest jumps.

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