Allstate Corp. reported $1.04 billion in pretax catastrophe losses for March 2025, contributing to a total of $2.2 billion in estimated first-quarter losses. According to the company’s statement, 11 events were responsible for the March losses, with four significant weather systems involving wind and hail causing about 80% of the total damage.
The insurer noted that it had exceeded the retention threshold of its annual aggregate reinsurance program for the risk period ending March 31. As a result, Allstate expects approximately $123 million in recoveries, which will reduce the reported March loss figure.
In a previous update, Allstate had estimated $1.07 billion in losses from January wildfires in Los Angeles. This estimate included the company’s projected share of the California FAIR Plan’s $1 billion assessment and $1.4 billion in expected reinsurance recoveries.
Despite the significant catastrophe losses, Allstate Protection policies in force grew 0.1% year over year to 37.71 million. The growth was driven by a 2.5% increase in homeowners’ policies, which helped offset declines in auto and commercial lines. The company reports policy counts based on insured items rather than individual customers, excluding lender-placed policies associated with lender relationships.
For context, Allstate’s financial performance in the fourth quarter of 2024 showed consolidated revenues of $16.51 billion, an 11.3% increase compared to the same period the previous year. Net income applicable to common shareholders was $1.9 billion, up from $1.46 billion in the fourth quarter of 2023. The property-liability combined ratio improved to 86.9 from 89.5 in the prior-year period.
For the full year 2024, Allstate reported net income applicable to common shareholders of $4.55 billion, compared to a net loss of $316 million in 2023. The company’s catastrophe losses for the full year totaled $4.96 billion, slightly down from $5.64 billion in 2023. The underlying combined ratio, which excludes catastrophe losses and prior-year reserve changes, was 84.6 for the year, showing improvement from 91.2 in 2023.
