ALLStAtE: $260 MILLIoN
Allstate Corp. says it expects about
$260 million in pre-tax catastrophe losses
for the 2012 first quarter. The bulk of the
loss was in March, says the Northbrook,
Ill.—based insurer, estimating $190 million in pretax catastrophe losses during
the last month of the first quarter.
Tornadoes have dominated the headlines and caused much of the insured catastrophe losses in the first quarter. March
saw significant tornado events in Michigan,
Indiana, and Kentucky.
Grouping the three states together, Allstate is the third-largest writer of homeowners’ multi-peril and the third-largest
writer of private passenger auto insurance,
according to SNL Financial.
“Losses from 15 events during the first
quarter actually totaled $420 million,
which was offset by favorable reserve
development on prior-year catastrophe
losses,” Allstate says.
Allstate Corp. ended 2011 with a fourth-quarter net income increase of $428 million to $724 million but net income for the
year dropped 15 percent to $788 million.
The insurer used favorable reserve re-
estimates to bring 2011 fourth-quarter
catastrophe losses to $66 million. Allstate
says it incurred $216 million in losses
from 19 events during the fourth quarter.
The company posted a combined ratio
of 103.4 for 2011.
StAtE Auto, CINFIN:
$19 to $21 MILLIoN
According to State Auto Financial Corp.,
results for the first quarter will include
pre-tax catastrophe losses of between $19
million and $21 million.
The Columbus, Ohio-based super-re-
gional holding company says 85 percent of
the losses came from Kentucky, Indiana,
and Tennessee and are primarily related to
the early-March tornadoes, as well as wind
and hail in the southern United States that
moved into the Ohio Valley. State Auto is
scheduled to release official results for the
first quarter on May 3.
Thousands of Claims Originate
from Severe Weather in Plains
Claims counts from severe weather in the Plains states in mid-April are quickly piling up. As of April 16,
State Farm, the top insurer of property
in the affected states, reported receiving
more than 2,400 claims for tornado, hail
and wind damage.
Meanwhile, American Family Insurance has logged 800 property claims and
about 430 automobile claims, according
to Stephen Witmer, a spokesman for the
company. The National Weather Service
reported 126 tornadoes touched down in
Iowa, Kansas, Nebraska and Oklahoma
Saturday and early Sunday. The count is
not official, however.
Many of the tornadoes have been reported in isolated areas of rural Kan-
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