The insurance company has announced its November 2018 catastrophe loss estimate including fires.
Allstate wildfire losses were recently announced for the month of November 2018. The insurance company estimated its catastrophe losses to be $685 million, at 679 million pre-tax, or $541 million after tax.
The Allstate catastrophe losses included another $6 million in unfavorable reserve reestimtates.
Initially, the Allstate wildfire losses were estimated to have been $202 million pre-tax, or $160 million after-tax for the month of October 2018. That said, the ongoing fires brought the October and November 2018 catastrophe loss total to $887 million pre-tax ($701 million after tax).
The two largest contributors to the Allstate catastrophe losses were the Camp fire and Woolsey fire. These both led to devastating losses of both life and property. The insurance company acted quickly to respond and continues to assist its policyholders as they work to rebuild their lives. They have already made insurance policy payouts of a gross $1.2 billion. This, despite having cut back on the number of active policies in California by about 50 percent over the last decade.
The two fires accounted for the vast majority of the Allstate wildfire losses during those months.
The Camp and Woolsey Fires accounted for an estimated $670 million in losses in November (pre-tax). These losses help to illustrate the impact of reinstatement premiums and reinsurance recoveries.
“It’s time to address the impact that more severe weather is having on Americans instead of fighting about climate change,” explained The Allstate Corporation president, chairperson and chief executive officer, Tom Wilson in an Allstate statement. “This year there have been approximately 7,500 wildfires in California, Hurricanes Florence and Michael and a swath of severe weather across the United States, putting our customers in danger and at risk of losing their homes and hard-earned money.”
Wilson also underscored the insurance company’s gratitude for the support first responders have given, as well as that of government officials as victims of the fires cope with the events. That said, Allstate wildfire losses aside, he pointed to a great need to establish “longer term solutions, such as ensuring power lines are properly maintained, homes have natural fire barriers and building codes reflect increased severe weather.”