Allstate Reports $1.4B CAT-Related Losses in April

Earlier this week, catastrophe modeling firm AIR Worldwide estimated that insured losses from the severe thunderstorm outbreak that struck the United States from April 22 to April 28, 2011, are between $3.7 billion and $5.5 billion.

Today, The Allstate Corp. says it estimates $1.4 billion in catastrophe losses for the month of April—about $1.37 billion for the Allstate brand and about $30 million for Encompass brand.

As expected, the late-April southeastern U.S. storms contributed heavily to the losses. During April, Allstate deployed more than 3,000 claims professionals to assist customers, with more than 100,000 claims reported to date in the areas affected by these catastrophes.

In the future, Allstate plans to announce monthly and quarter-to-date estimates for catastrophe losses when monthly catastrophe losses are estimated to exceed $150 million. These announcements will inform investors who have a strong interest in the company's catastrophe loss estimates when there is significant severity or frequency of catastrophe events. Over the past 10 years, Allstate had catastrophe losses exceeding $150 million in about 30% of months.