Allstate Sees More Than $700M in August Catastrophe Losses

Allstate headquartersAllstate announced Thursday that catastrophe losses cost the company $735 million in August, including $500 million from Hurricane Irene.

The estimated pretax toll made up the bulk of the $865 million in total estimated losses from Irene and seven other weather events in July and August, according to the company.

The announcement is part of the insurer’s plan to make public monthly and quarter-to-date catastrophe losses that are greater than $150 million for a given month. The insurance industry typically defines a catastrophe as an event that causes $25 million or more in insured property losses and impacts a significant number of policyholders and coverage providers, according to the Insurance Information Institute (III).

Allstate, one of the largest auto insurance companies in the country, reported $2.3 billion in losses from 33 catastrophe loss events in the second quarter of this year that included five tornadoes, three wildfires and 25 wind or hailstorms.

Government and insurance industry officials are still trying to add up the economic costs of Irene, which hammered the East Coast late last month.

Earlier this week, disaster modeling company Risk Management Solutions (RMS) estimated insured losses from Irene at between $2 billion and $4.5 billion for the United States and at as much as another $1 billion for the Caribbean.

The RMS estimate is in the same range as projections from other sources. III, for example, has stated that Irene damages could range from $3 billion to $5 billion nationwide.

State Farm announced last week that it had received a total of about 63,500 claims as a result of Irene, including nearly 7,400 for vehicle losses.

The largest number of auto claims filed with the company came from came from Virginia and North Carolina, with each having about 1,500 claims to date.

To find out how policyholders rank Allstate on claims, rates and service, readers can research user-submitted Allstate auto insurance reviews online.

About Gregor McGavin
Gregor McGavin is an award-winning journalist who has reported across the country for such publications as The Associated Press, the Arizona Republic, the Pittsburgh Tribune-Review and the Press-Enterprise.

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