The month of September 2021 saw another $165 million of pre-tax catastrophe losses added to Allstate’s bill for the third-quarter of the year, which has now risen to $1.3 billion thanks to the significant loss it had previously announced from hurricane Ida.As we explained a month ago, .After August, Allstate’s pre-tax catastrophe losses stood at $1.1 billion.Now September saw an additional $103 million of catastrophe losses from events that month, while the rest of the $165 million came from reinsurance reinstatement premiums and also some modest unfavourable reserve re-estimates, Allstate said.

Roughly 50% of September’s catastrophe losses came from two large wind and hail events, primarily impacting the Midwest, the insurer said.As a result, Allstate’s catastrophe loss bill for the third-quarter has now risen to $1.3 billion, but its reinsurance program has reduced the bill significantly and on a gross basis it’s expected the figure would be more than $2 billion.Allstate’s aggregate deductible will have been eroded somewhat by third-quarter catastrophe loss activity, which effectively heightens the risk for the insurers catastrophe bonds over the rest of the risk period that runs to April next year.———————————————————————.

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