The Allstate Corporation announced estimated catastrophe losses for March 2025 totaling $1.04 billion, or $818 million after-tax. These losses stemmed from 11 events, with approximately 80% related to four geographically widespread wind and hail events. This marks another month of significant weather-related impacts on the company's financial performance.
Notably, in March, Allstate surpassed the retention level of its annual aggregate reinsurance cover for the annual risk period ending March 31, 2025. This means the company expects to receive recoveries from its comprehensive reinsurance program, which is designed to reduce earnings volatility and protect capital. The activation of this reinsurance is a key aspect of its risk management strategy.
The combination of high gross losses and expected reinsurance recoveries provides a clearer picture of the net financial impact. While the losses are substantial, the reinsurance program is functioning as intended to mitigate the overall burden on the company's earnings. Investors will monitor the actual recoveries in future reports.
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