May catastrophe events to cost Allstate an estimated US$178 million

Four severe weather events accounted for more than 77% of Allstate Corporation’s estimated catastrophe losses for the month of May, which the company has pegged US$178 million, pre-tax (US$116 million after-tax).

In total, there were eight catastrophe losses occurring in May for an estimated cost of US$180 million, pre-tax, partially offset by decreased reserve re-estimates of prior reported catastrophe losses, notes a statement Thursday from the company, the largest publicly held personal lines insurer 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.

Of the estimated catastrophe losses in May, Allstate reports that about double the normal percentage – 30% – were related to auto claims due to large rain events accompanied by heavy flooding. “Historically auto claims comprise approximately 15% of catastrophe losses in the second quarter,” it adds.

Allstate previously announced US$273 million, pre-tax (US$177 million after-tax), in estimated catastrophe losses for April, bringing estimated catastrophe losses for April and May to US$451 million, pre-tax (US$293 million after-tax).

Related: Four events accounted for majority of estimated cat losses in April: Allstate

In April, Allstate pointed out that four wind/hail weather events accounted for more than 90% of its estimated catastrophe losses for the month.

“Catastrophe losses occurring in April comprised six events at an estimated cost of US$256 million, pre-tax, plus increased reserve re-estimates of prior reported catastrophe losses,” Allstate reported, adding that the estimated loss amount scenario was similar to its estimate in February, when three severe winter weather/freeze events accounted for the lion’s share of the estimated US$223 million (pre-tax) in catastrophe losses (US$145 million after tax).