NU Online News Service, June 16, 2:29 p.m. EDT
Catastrophe losses in April and May could end up costing Allstate Corp. $2 billion, according to the company's most recent estimate.
The Northbrook, Ill.-based insurer says it expects $600 million in pre-tax catastrophe losses for seven events in May. Previously Allstate said April catastrophe losses would be around $1.4 billion.
In a recent Fitch Ratings report, the rating agency said Allstate was the second-largest insurer in the U.S. by market share for both personal auto and homeowners insurance.
The Fitch report said Allstate has seen the most significant decline in homeowners market share in 2010 compared to 2009 due to the company's strategy to reduce its exposure in catastrophe-prone areas.
April and May saw deadly storms hit multiple U.S. states, spawning destructive tornadoes in the South and Midwest, and even in Massachusetts. On May 22, a devastating tornado leveled a large swath of Joplin, Mo.
Earlier this month, AIR Worldwide said losses from storms that occurred May 20-27 could cause insured losses of between $4 billion and $7 billion.
In late May, catastrophe modeler Risk Management Solutions said losses from the April storms will likely be in the range of $3.5 billion to $6 billion.
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