01—Abstract
Summary
Summary of the 8-K filed September 19, 2024. Cited figures are marked; the original filing is the authoritative source.
Allstate Corporation (NYSE: ALL) furnished an 8-K on September 19, 2024 under Regulation FD (Item 7.01) attaching a press release that estimates catastrophe losses for August 2024.
The filing is furnished rather than filed, so it is not subject to the liability provisions that apply to filed documents, and it contains no new financial statements, guidance changes, or material agreements. Its content is limited to a monthly catastrophe loss update. For August 2024, Allstate estimates pre-tax catastrophe losses of $272 milliona, or $215 million after tax, including favorable reserve reestimates for prior-period events.
Gross catastrophe losses from 15 August events were estimated at $306 millionb. The largest single item was a hail event in Calgary, Canada, at roughly $75 million net of anticipated reinsurance recoveries of $225 million. That estimate includes reinsurance reinstatement premiums.
Year-to-date figures are the more informative numbers for investors. Combined July and August catastrophe losses were $814 millionc pre-tax ($643 million after tax), and August year-to-date catastrophe losses reached $3.67 billion pre-tax ($2.90 billion after tax). Because these are estimates that can move with later development, investors should treat the monthly figures as preliminary and watch subsequent reserve updates and the quarterly results for final figures.
02—Key points
Key Highlights
- August 2024 catastrophe losses estimated at $272 million pre-tax, or $215 million after tax, including favorable prior-period reserve reestimates
- Calgary, Canada hail event accounted for about $75 million net of $225 million in anticipated reinsurance recoveries
- August 2024 included 15 catastrophe events with gross estimated losses of $306 million
- July and August combined catastrophe losses totaled $814 million pre-tax ($643 million after tax)
- Year-to-date catastrophe losses through August reached $3.67 billion pre-tax ($2.90 billion after tax)
- Filing is a Regulation FD disclosure; the press release is furnished, not filed, under Form 8-K Instruction B.2
- No new financial statements, guidance changes, or material agreements were disclosed in this filing
03—Questions
Frequently Asked Questions
How large were Allstate's catastrophe losses in August 2024?
Allstate estimated August 2024 catastrophe losses at $272 million pre-tax, or $215 million after tax. This figure includes favorable reserve reestimates for prior-period events, which partly offset the current-month losses.
What drove the August 2024 catastrophe losses?
Fifteen events were estimated at $306 million in gross losses. The largest was a hail event in Calgary, Canada, with roughly $75 million in net losses after $225 million of anticipated reinsurance recoveries and reinstatement premiums.
How do year-to-date catastrophe losses compare?
Year-to-date catastrophe losses through August 2024 totaled $3.67 billion pre-tax, or $2.90 billion after tax. Combined July and August losses were $814 million pre-tax, or $643 million after tax.
Is this filing a source of new financial results or guidance?
No. The filing is a Regulation FD disclosure of a monthly catastrophe loss estimate. It is furnished rather than filed and does not include new financial statements or updated guidance.
Why does this disclosure matter for investors?
Catastrophe losses are a major earnings driver for property insurers. Monthly estimates help investors track how severe weather is affecting Allstate's results before quarterly reports, though the figures are preliminary and may change as losses develop.
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