Allstate Reports Losses: What Does This Mean for the Market?

Allstate reports losses

In a recent financial disclosure, The Allstate Corporation (NYSE: ALL) has reported significant catastrophe losses for January, posing new questions about the impacts on the broader insurance market. Key Financial Impacts Allstate’s estimated catastrophe losses have tallied up to $276 million pre-tax, or $218 million after-tax, for the month of January alone—a substantial hit to the corporation’s financials. Predominantly, these losses stem from two major events, accounting for the lion’s share—around 80%—of the total figure, although these have been slightly mitigated by favorable re-estimates of prior events’ reserves. Rate Adjustments…

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Homeowners insurance getting harder to find in Florida

Mercury General Corp. has decided that it will be pulling out of the Florida homeowners insurance market. The announcement was made on Monday and the move comes as reports of a $19 million loss in that particular market in the fourth quarter. The insurer is already making preparations to inform some 8,000 policyholders that their policies will no longer be renewed. Florida law mandates that notices be sent 180 days in advance and the insurer will begin sending them in March. Mercury General blames their fourth quarter losses on the…

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