A quieter July in catastrophe loss terms resulted in US insurer Allstate only reporting $184 million in pre-tax impacts from severe weather events, which has lifted the total for the current annual aggregate risk period for its catastrophe bonds to $2.174 billion so far.It remains a relatively heavy start to the annual aggregate year of its catastrophe bonds, in pre-tax overall catastrophe loss terms.But, it’s important to remember that not all of these catastrophe losses will qualify to erode the cat bond aggregate retentions, especially in a lighter month with numerous smaller events.Allstate’s annual aggregate year for its nationwide coverage cat bonds begins on April 1st.

The company had , then a further $777 million for May and an additional .For July 2025, Allstate has reported a much lower $184 million of catastrophe losses for the month pre-tax, or $145 million after-tax.Notably though, the July cat losses came from 19 wind and hail events experienced during the month, Allstate explained.

With Allstate’s aggregate cat bonds having a $50 million per-event retention under their terms, it seems that perhaps only a small amount, if any, of the July catastrophe burden would actually qualify to erode those retention layers, so July may be a month of much less relevance to the cat bond community than the previous three were.Previously, we’ve estimated that Allstate sees around 45% to 60% of its pre-tax catastrophe losses qualifying under the terms of its cat bonds, with the magnitude of loss events the main driver (larger events qualify more substantially towards aggregate deductible erosion).As a result, a lighter month like July where multiple smaller events occurred may make little or no difference to the erosion.

, the aggregate Sanders Re cat bonds now sit above an attachment level of $4 billion for this current risk period.As a result, we’d estimate they sit a long way above the erosion from qualifying losses seen so far this year.It’s worth also noting though, that that runs for a seven month duration, from June 1st 2025 through December 31st.

That homeowners insurance focused aggregate reinsurance cover attaches after $3.5 billion of aggregate losses to the homeowners book, so not quite as high up as the cat bonds, providing $325 million of cover across a $500 million layer beyond that.But more important to note is the fact that it covers Allstate homeowners catastrophe losses for events greater than just $1 million, meaning it might see faster erosion of the attachment deductible..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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