By a News Reporter-Staff News Editor at Real Estate Weekly News -- The Allstate Corporation (NYSE: ALL) announced estimated catastrophe losses for the month of January 2014 of $277 million, pre-tax ($180 million after-tax). Catastrophe losses occurring in January comprised six events at an estimated cost of $271 million, pre-tax, plus unfavorable reserve reestimates of prior reported catastrophe losses. One of the events met the definition of a winter freeze catastrophe in one region of the country but not in other regions due to the amount of claim counts. Non-catastrophe losses in these other regions were $39 million, pre-tax, which will be reflected primarily in the homeowners combined ratio and the homeowners underlying combined ratio that excludes catastrophe losses and prior year reserve reestimates.
A "catastrophe" is defined as an event that produces pre-tax losses before reinsurance in excess of $1 million and involves multiple first party policyholders, or an event that produces a number of claims in excess of a preset, per-event threshold of average claims in a specific area, occurring within a certain amount of time following the event. As a result, catastrophe losses as broken out in underwriting results will not always include all of the frequency and severity impacts of severe weather from an event or increased auto physical damage losses.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Allstate branded insurance products (auto, home, life and retirement) and services are offered through Allstate agencies, independent agencies, and Allstate exclusive financial representatives, as well as via www.allstate.com, www.allstate.com/financial and 1-800 Allstate(®), and are widely known through the slogan "You're In Good Hands With Allstate(®)."
Keywords for this news article include: Industry, Homeowners, Real Estate, Financial Companies, The Allstate Corporation, Property and Casualty Insurance Companies.
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