Allstate Announces May Catastrophe Loss Estimate of $440M, Pre-Tax
The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of May 2014 of $440 million, pre-tax ($286 million after-tax). Catastrophe losses occurring in May comprised eleven events at an estimated cost of $400 million, pre-tax, plus unfavorable reserve reestimates of prior reported catastrophe losses. Three severe weather events accounted for over 78% of the estimated catastrophe losses for May events.
Allstate previously announced $280 million, pre-tax ($182 million after-tax), in estimated catastrophe losses for the month of April 2014, bringing estimated catastrophe losses for the second quarter months of April and May 2014 to $720 million, pre-tax ($468 million after-tax).
Last year, Allstate announced estimated May catastrophe losses of $323 million, pre-tax ($210 million after-tax), and catastrophe losses totaling $539 million, pre-tax ($350 million after-tax) for April and May 2013.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, protecting approximately 16 million households from life's uncertainties through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Allstate is widely known through the slogan "You're In Good Hands With Allstate®." The Allstate brand's network of small businesses offers auto, home, life and retirement products and services to customers in the United States and Canada.
Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.
Forward-Looking Statements and Risk Factors
This news release contains forward-looking statements about catastrophe losses. These statements are based on our estimates and assumptions that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Management believes the estimated impact of catastrophe losses, including net loss reserves, are appropriately established and recorded based on available facts, information, laws and regulations. However, actual results may differ materially from those projected in the forward-looking statements in this news release and from the amounts currently recorded for a variety of reasons, including the following:
Our policyholders' ability to report and our ability to adjust claims may have been impeded by the extent of the devastation and the number of areas affected.
It is particularly difficult to assess the extent of damage in the initial stages of adjusting residential property losses.
Our estimate for the ultimate costs of repairs may not prove to be correct because of increased demand for services and supplies in the areas affected by the catastrophes.
The number of incurred but not reported (IBNR) claims may be greater or less than currently anticipated.
We assume no obligation to update any forward-looking statements as a result of new information or future events or developments.
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