Canadian Underwriter

Allstate facing US$425 million Charley price tag

September 1, 2004   by Canadian Underwriter

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As insurer loss tallies continue to pour in as a result of Hurricane Charley’s destructive run through Florida and the Carolinas in mid-August, Allstate Corp. appears to be one of the hardest hit. The Illinois-based insurer faces a loss total of US$425 million, net of recoveries from the Florida Hurricane Catastrophe Fund, which will result in an after-tax loss total of US$276 million or US$0.40 per diluted share.
While the company experienced low losses in the Carolinas, much of this total comes from payouts in Florida on personal lines property and auto, as well as commercial policies.
Also disclosing losses is St. Paul Travelers Cos., which says it expects a net loss of US$140 million after-tax.
And Connecticut-based The Hartford Financial Services Croup says its will pay out net pre-tax losses of US$140 million, US$91 million after-tax, or US$0.30 per diluted share. The company has already received 11,300 claims, of which almost 9,000 are homeowners claims, with 1,200 auto and 1,100 commercial claims.

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