NU Online News Service, April 19, 12:01 p.m. EDT

Allstate Corp. says it expects about $260 million in pretax 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.

Special Reports /

Allstate: $260 Million in Q1 Catastrophe Losses

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