Allstate Corp. says it expects $1.08 billion in pretaxcatastrophe losses, mostly from Superstorm Sandy, for the month ofOctober.

The Northbrook, Ill.-based insurance group says in a statementthat while gross losses are higher, the company expects to getabout $200 million from reinsurance.

Allstate says the late October storm was the largest offive catastrophe events in October, but it did not break down eachevent.

About 66 percent of the gross catastrophe loss estimate ofaround $1.28 billion is attributable to New York, says Allstate.About 20 percent comes from New Jersey, with 14 percent generatedby other affected states.

Delving further, auto claims represented about 40 percent of thetotal gross losses. Nearly 80 percent of that stems from New York,Allstate says.

The insurer says its nationwide reinsurance agreement excludesNew Jersey and Florida, but Allstate has three reinsurancecontracts for New Jersey.

Allstate expects Sandy losses “will be contained within thefirst layer of the nationwide reinsurance agreement,” and itpredicts “minimal recovery under the New Jersey reinsuranceagreement.”

The estimate is based on inspections by adjusters and thecompany's historical loss development factors.

Sandy made landfall in Southern New Jersey before heading inlandand up toward Maine. Most estimates have indicated a majority ofinsured losses occurred in New Jersey and New York. Catastrophemodeler Risk Management Solutions has issued the highestSandy-related insured-loss estimate among the major modelers, at upto $25 billion. AIR Worldwide recently upped its prediction to asmuch as $22 billion in insured losses, and Eqecat says losses willbe up to $20 billion.

Allstate joins a growing group of insurers who have announcedlosses tied to the storm. Yesterday Cincinnati Financial Corp. said it expects a $25 million to $35million loss to be recorded in the fourth quarter thanks to claimsgenerated by Superstorm Sandy, while fellow Ohioan ProgressiveCorp. says it sustained catastrophe losses of about $55 million in October due to Superstorm Sandy.

Tower Group says it expects an after-tax net loss fromSuperstorm Sandy of between $55 million and $68 million in the fourth quarter.

Reinsurer Swiss Re says Sandy could cause the company $900 million in pretax catastrophe losses.