US insurer Allstate has announced an estimated pre-tax catastrophe loss burden for the month of May 2025 of $777 million, which when added to the cat losses from April takes the total for its 2025 annual risk period for its aggregate catastrophe bonds to $1.37 billion.Severe weather events have again been the driver of another costly month of catastrophe losses for Allstate.The company disclosed that the $777 million pre-tax, or $614 million after-tax, of catastrophe losses for May 2025 came from 11 events during the month.Roughly 70% of those losses were related to three geographically widespread wind and hail events, Allstate explained.

As a result, Allstate’s total catastrophe losses for April and May reached $1.37 billion, or $1.08 billion after-tax.It’s worth highlighting that the May total was roughly half the amount of losses suffered a year ago.May 2024 resulted in $1.4 billion of pre-tax catastrophe losses for Allstate, while the April and May 2024 total reached $1.89 billion.

Meaning the run-rate for the new annual risk period for the aggregate reinsurance coverage provided by Allstate’s catastrophe bonds is currently slower moving than a year ago.Allstate’s aggregate reinsurance, which is all provided by some of its Sanders Re cat bonds, begins accumulating qualifying losses over the year from April 1st.However, with a $50 million per-event retention under the terms of those cat bonds, not all of these pre-tax losses will qualify, as some may have come from smaller events or affected subject business that is not covered under the cat bonds.

After , the aggregate Sanders Re cat bonds now sit above an attachment level of $4 billion for this current risk period.Meaning that, while a chunk of the aggregate retention has likely been eroded by April and May, the bonds will remain some billions away from attaching at this time, we assume.It’s worth remembering that, following the last annual aggregate risk period to March 31st 2025, .

Prior to a reset for the new risk period, those cat bonds attached above $3.6 billion of qualifying aggregate catastrophe losses for the insurer, so attachment is more remote in the new risk period..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.