Allstate
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The carrier is seeking ex-Florida coverage for named storm, earthquake, severe weather, fire, volcanic eruption or meteorite. -
Allstate disclosed a $211mn catastrophe loss in February based on nine separate events.
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The carrier’s equivalent bond placed last March secured $550mn of limit.
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This takes its ex-Florida cat losses since the start of its reinsurance annual risk period in April above $2bn.
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The market is characterised by rising prices and shrinking deal sizes as investors pick and choose over which bonds to back.
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The carrier had earlier expanded its hoped-for range to $100mn-$125mn.
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The bond has also expanded its range to target up to $125mn.
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The bond will provide the carrier with five years’ coverage for named storms across the US excluding Florida.
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The firm disclosed that ex-cat unfavorable prior year reserve reestimates totaled $875mn, of which $643mn were related to its personal auto unit.
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Allstate CFO Mario Rizzo vowed to continue pushing through auto rate increases.
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The company also said it expects a $408mn reserve charge, including $275mn related to personal auto and $91mn recorded for commercial auto.
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The carrier’s below-FHCF layer is 29% unplaced.
