Severe winter weather drives Allstate’s estimated cat losses for February

Three severe winter weather/freeze events accounted for the lion’s share of Allstate Corporation’s estimated US$223 million (pre-tax) in catastrophe losses for February 2015, the insurer reports.

The cat loss estimate for the month was US$223 million (pre-tax) and US$145 million (after-tax), notes a statement last week from Allstate, the largest publicly held personal lines in the United States, whose brand’s network of small businesses offers auto, home, life and retirement products and services in the U.S. and Canada.

Allstate points out the three severe events accounted for more than 88% of the insurer’s estimated loss for February events. “Catastrophe losses occurring in February comprised seven events at an estimated cost of US$224 million, pre-tax, partially offset by favourable reserve re-estimates of prior reported catastrophe losses,” notes the company.

Estimated cat losses for the first quarter months of January and February 2015 totaled US$225 million (pre-tax) and US$146 million (after-tax), Allstate adds.

Earlier this month, Aon Benfield’s Impact Forecasting reported in Global Catastrophe Recap that U.S. insured losses related to weather in February were expected to likely exceed US$1 billion. The recap noted there were six winter weather events in the U.S.

Related: Insured losses in U.S. from February weather “likely to exceed” US$1 billion: Aon Benfield Impact Forecasting

“Based on preliminary estimates from local and state governments, businesses, and the insurance industry, it is expected that aggregated economic losses during February will be in the low-digit billions of dollars,” Impact Forecasting noted at the time of the U.S. catastrophes.

The Insurance Information Institute (I.I.I.) reported this January that severe winter weather caused 15% of all insured auto, home and business catastrophe losses south of the border in 2014.

“Losses from snow, ice, freezing and related causes totaled US$2.3 billion last year, after averaging about US$1.2 billion annually over the previous 20 years,” I.I.I. president Robert Hartwig said in a statement. “Insured losses caused by winter weather were US$1.9 billion in 2013, so the last two years have been well above what the insurance industry has traditionally seen from this type of severe weather,” Hartwig added.