Allstate
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The losses were below May’s $777mn, but almost 3x higher than for June 2024. -
The bond will provide protection for Allstate’s Florida subsidiary, Castle Key.
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The carrier surpassed the retention on its annual aggregate reinsurance cover for the year to March 31.
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The carrier estimated January cat losses of $1.08bn, or $849mn after-tax, including the fires.
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The bond provides coverage for storms, earthquakes and severe weather events.
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The carrier has been reducing its presence in the state since 2007.
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Fifteen events caused estimated losses of $306mn.
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Investors may be able to recoup between $15mn-$18mn of principal.
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Total catastrophe losses stemmed from 20 events and were estimated at $587mn.
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This takes pre-tax year-to-date cat losses to $2.62bn.
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This takes pre-tax cat losses for the calendar year to $1.23bn
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Sanders Re cat bond coverage attaches higher than last year at $5.46bn.
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This follows February’s cat losses coming in below the $150mn reporting threshold.
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The multi-peril coverage was due to expire in June 2026.
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This follows January pre-tax cat losses of $276mn.
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Monthly cat losses were driven by two major events.
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Unfavorable prior year reserve re-estimates, excluding catastrophes, totaled $199mn in Q4, with approximately $148mn related to personal auto, including costs for litigation claims.
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Earlier today, the insurer updated the spread on the cat bond which has settled at 5.75%, and updated the target price to $300mn-$350mn.
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Allstate increased the target size of the bond to $300mn-$350mn, up from $200mn.
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Sanders Re III will provide coverage for the District of Columbia and all US states apart from Florida.
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Most of the losses, around 80%, were the result of two wind and hail events.
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Investors will have to wait an additional three years for collateral to be returned.
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Allstate reported cat losses of $1bn and $885mn for June and May.
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The downgrades reflect the negative impact of challenging macro-economic trends on underwriting results and risk-adjusted capitalization.
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The carrier’s Florida reinsurance tower’s top layers comprise a total of $450mn in Class A Sanders Re cat bond coverage.
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Nearly $148mn of the unfavorable reserve development was related to National General, primarily driven by personal auto injury coverages.
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The carrier said 70% of the claims stemmed from two wind and hail events.
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The deal will protect against named storm, quake, severe weather event, fire, volcanic eruption or meteorite impact in Florida.
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The loss for the month was 60% comprising losses from two wind and hail events.
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The carrier shifted retentions up and made use of multi-year contracts.
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The Class B notes upsized by $25mn to $175mn, while the higher-risk Class C zero-coupon notes were not placed.
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The carrier is seeking ex-Florida coverage for named storm, earthquake, severe weather, fire, volcanic eruption or meteorite.
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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.
