Insurance Business Magazine February, 2025
Allstate Corp. expects net pretax catastrophe losses of $1.07 billion from the January wildfires in Los Angeles, according to a report from AM Best. The estimate includes Allstate’s share of the California FAIR Plan’s $1 billion assessment and $1.4 billion in anticipated reinsurance recoveries, the company said.
The company reported about $1.08 billion in net pretax catastrophe losses for January. The number of Allstate Protection policies in force declined 0.5% last month to 37.4 million, compared with a year earlier. Growth in homeowners and other personal lines policies was offset by a decline in automobile and commercial lines policies. Tom Wilson, Allstate’s chair, president and CEO, said that the cost of reinsurance will not be recovered. He also noted that the company has reduced its market share in California’s homeowners insurance sector from 12.6% in 2008 to less than 5.8% last year.
