The Allstate Corporation announced estimated catastrophe losses for January 2025 totaling $1.08 billion, or $849 million after-tax. A substantial portion of these losses, approximately $1.07 billion, was attributed to the California wildfires. This estimate includes reinsurance reinstatement premiums and an estimated California FAIR Plan assessment, net of estimated reinsurance recoveries of $1.40 billion.
The significant impact from the California wildfires underscores the ongoing challenge of severe weather events for the insurance industry. Despite substantial reinsurance recoveries, the net losses remain considerable, affecting the company's profitability for the quarter. This event highlights the importance of robust catastrophe management strategies.
Regarding policies in force, auto policies decreased by 0.4% to 24,835 thousand compared to December 31, 2024, while homeowners policies increased by 0.1% to 7,521 thousand. Total Allstate Protection policies in force saw a slight decrease of 0.3% to 37,426 thousand. These trends provide insight into customer acquisition and retention in key segments.
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