Hurricane Harvey’s impact will be hitting Allstate hard. Hurricane Harvey was the worst Texas has seen in decades. The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting people from life’s uncertainties with 75 million proprietary policies. Allstate offers a broad array of protection products through multiple brands and diverse distribution channels, including auto, home, life and other insurance offered through its Allstate, Esurance, Encompass and Answer Financial brands. The Company provides additional protection products and services through Allstate Benefits, Allstate Roadside Services and more. It knew the Hurricane would be costly, but now we have a number.
Hurricane Harvey will devastate Allstate. Estimated gross catastrophe losses, excluding homeowners flood, totaled $576 million, pre-tax, which will be reduced by $23 million in anticipated reinsurance recoveries for a net estimated loss of $553 million. Hurricane Harvey estimated losses include approximately 55% related to auto coverages. Allstate said it incurred estimated losses and expenses of $53 million not covered by its reinsurance related to commercial insurance, auto protection contracts and loss adjusting expenses in excess of its reinsurance allowances. Given the complexity of this event it may experience a higher level of uncertainty in ita estimates due to the inability of its customers to gain access to their homes and autos and submit claims. Hurricane Irma occurred in September and is not included in our reported estimates.
Hurricane Irma will further crush the company. We recommend you sell the news.