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Allstate (ALL) Provides February Catastrophe Loss Estimates
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Property and casualty insurer The Allstate Corporation (ALL - Free Report) has announced estimated catastrophe losses of $577 million pretax ($456 million after tax) for February 2021.
These weather-related losses emanate from two events with an estimate of $590 million pretax ($466 million after tax), partially offset by favorable prior-period reserve reestimates.
The major winter freeze that mostly impacted Texas induced gross losses of $1.3 billion while net losses are estimated at $567 million pretax ($448 million after tax). This shows projected reinsurance recoveries, offset by reinstatement premiums to some extent.
For the month of January, estimated catastrophe losses stood at favourable $55 million, which was a result of subrogation recoveries related to the 2018 Woolsey wildfire. This brings projected February quarter-to-date cat loss to $522 million pretax ($412 million after tax).
Due to a relatively large property insurance business, Allstate is significantly exposed to catastrophic events. Weather-related losses over the years have weighed on the company’s claims and benefits, expenses and cash flow, thereby draining its underwriting profitability.
In 2020, the company incurred catastrophe losses of $2.8 billion, which increased 9.9% year over year. Though the company is focused on reducing losses through its catastrophe management strategy and reinsurance programs, and also aims at limiting exposure to riskier geographic markets by raising premiums, it will suffer a decline in the number of policies in force.
Other property and casualty insurers that incur catastrophe losses include United Insurance Holdings Corp. , RLI Corp. (RLI - Free Report) and Arch Capital Group (ACGL - Free Report) .
Nevertheless, given the company’s managerial skills in tackling losses due to cat occurrences, our confidence in its ability to deliver impressive underwriting results is intact.
Allstate is covered under a catastrophe reinsurance program, which materially mitigates its exposure to wind and earthquake losses. These reinsurance agreements are placed in the traditional reinsurance and insurance-linked securities markets.
The company has also been delivering solid revenues from the past many years, led by premium growth. Its strength in 2020 reflects its resilient strategy to rapidly adapt to the coronavirus pandemic environment. We expect revenue growth to continue, given a number of strategic initiatives taken, such as product enhancements and changes in business mix to focus on those that command a high return on equity.
Moreover, its solid capital position boosts investment in business.
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Allstate (ALL) Provides February Catastrophe Loss Estimates
Property and casualty insurer The Allstate Corporation (ALL - Free Report) has announced estimated catastrophe losses of $577 million pretax ($456 million after tax) for February 2021.
These weather-related losses emanate from two events with an estimate of $590 million pretax ($466 million after tax), partially offset by favorable prior-period reserve reestimates.
The major winter freeze that mostly impacted Texas induced gross losses of $1.3 billion while net losses are estimated at $567 million pretax ($448 million after tax). This shows projected reinsurance recoveries, offset by reinstatement premiums to some extent.
For the month of January, estimated catastrophe losses stood at favourable $55 million, which was a result of subrogation recoveries related to the 2018 Woolsey wildfire. This brings projected February quarter-to-date cat loss to $522 million pretax ($412 million after tax).
Due to a relatively large property insurance business, Allstate is significantly exposed to catastrophic events. Weather-related losses over the years have weighed on the company’s claims and benefits, expenses and cash flow, thereby draining its underwriting profitability.
In 2020, the company incurred catastrophe losses of $2.8 billion, which increased 9.9% year over year. Though the company is focused on reducing losses through its catastrophe management strategy and reinsurance programs, and also aims at limiting exposure to riskier geographic markets by raising premiums, it will suffer a decline in the number of policies in force.
Other property and casualty insurers that incur catastrophe losses include United Insurance Holdings Corp. , RLI Corp. (RLI - Free Report) and Arch Capital Group (ACGL - Free Report) .
Nevertheless, given the company’s managerial skills in tackling losses due to cat occurrences, our confidence in its ability to deliver impressive underwriting results is intact.
Allstate is covered under a catastrophe reinsurance program, which materially mitigates its exposure to wind and earthquake losses. These reinsurance agreements are placed in the traditional reinsurance and insurance-linked securities markets.
The company has also been delivering solid revenues from the past many years, led by premium growth. Its strength in 2020 reflects its resilient strategy to rapidly adapt to the coronavirus pandemic environment. We expect revenue growth to continue, given a number of strategic initiatives taken, such as product enhancements and changes in business mix to focus on those that command a high return on equity.
Moreover, its solid capital position boosts investment in business.
Shares of this currently Zacks Rank #3 (Hold) company have gained 57.1% in a year’s time, outperforming its industry’s growth of 42.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>