Though there were a number of catastrophic events, PG&E subrogation recoveries made up for it.
Allstate Corporation has reported that even though it faced a spectrum of catastrophic events during July 2020, the losses it experienced were more than offset by its incomes.
The insurer faced losses of $145 million in July due to catastrophic events of various forms.
The losses faced by Allstate Corporation were more than offset to the PG&E subrogation recoveries income generation that occurred during that same month.
In July, the catastrophic event losses were quite high at a pre-tax $145 million (after-tax $115 million). Among those events which took place during July 2020 included Hurricane Hanna, as well as two severe hail and wind events. Those storms made up about 65 percent of the total estimated losses the insurance company faced during that single month.
Furthermore, Allstate also faced $29 million pre-tax (after-tax $23 million) in catastrophe losses from favorable prior period catastrophe reserve re-estimates. This helped to push the total losses for July 2020 even higher beyond the major storm events.
The Allstate Corporation was able to offset its substantial losses with even greater income in July.
The insurance company reported an income generation of a pre-tax $334 million (after-tax $264 million) in July. This clearly offsets the losses the company faced that month, even when taking into consideration their substantial size.
The reason is that both the Pacific Gas and Electric Company and PG&E Corporation were able to reach an important settlement with their insurer, Allstate, and other insurance claimants. This had to do with a case involving the 2017 Northern California wildfires, as well as the 2018 Camp Fire.
Those California wildfires were, argued the claimants in the case, indirectly caused by PG&E, and its aging equipment which was allegedly inadequately maintained.
Last month, the Allstate Corporation recorded the recoveries it brought in relating to that case. Those totalled a pre-tax net expense and reinsurance adjustment of $450 million (after-tax $356 million). The timing of that additional income was positive in terms of being able to offset the losses that the insurer faced during that same month.