Palisades wildfires in January. Credit: Pierce/Adobe Stock
Allstate’s second quarter catastrophe losses are down after the carrier reported losses related to the California wildfires and March wind events during the first three months of the year, according to a company release.
Estimated pretax catastrophe losses for the second quarter dropped to $1.99 billion from $2.12 billion year-over-year, Allstate said, with estimated losses during June at $619 million or $489 million after-tax.
Of the 15 events related to June’s losses, approximately 70% are related to three wind and hail events.
Despite the extreme weather, Allstate reported a year-over-year revenue increase in May for the first quarter of 2025.
The publicly traded company said total revenues reached $16.5 billion during the period, marking an increase of $1.2 billion or 7.8% from the same time last year.
“Net income was $566 million, lower than last year, as a record $3.3 billion of gross catastrophe losses were partially offset by $1.1 billion of reinsurance recoveries in the quarter,” said Tom Wilson, chair, president and CEO of The Allstate Corporation.
“Transformative Growth gained momentum with strong underlying insurance profitability and sequential growth in auto and homeowners insurance policies,” he added. “Proactive investment management supported enterprise risk and return objectives including the generation of $854 million of net investment income for the quarter. Protection Plans continues to grow in the U.S and internationally with revenues up 16.4% over the prior year. Allstate has the capabilities, brand, distribution and resources to increase Property-Liability market share and expand protection provided to customers.”
Allstate showed a 15.6% increase in brand homeowners’ insurance average gross written premium during the first quarter of 2025 compared to the prior year quarter due to approved rate increases and inflation in insured home replacement costs.
The recorded homeowners insurance combined ratio of 112.3 was 30.2 points above the first quarter of 2024, reflecting increased catastrophe losses, partially offset by favorable underlying loss performance.
On Wall Street, Allstate shares are up roughly 3.18% the last three months and 0.67% higher year-to-date. Over the last year, shares have risen roughly 11%.
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