US carrier Allstate was hit with $224mn of catastrophe losses in May mainly stemming from a serious of severe wind and hail events.
These storms in the mid-Atlantic, Northeast and Midwest regions accounted for around 60 percent of the total loss burden.
Meanwhile the company’s total estimated pre-tax catastrophe losses for last month came in at $278mn when accounting for prior year reserve development.
Allstate said the increase in reserves for past claims was mainly due to pending re-estimates from the Texas Windstorm Insurance Association in relation to losses from Hurricane Harvey which hit parts of the Lone Star state last autumn.
The loss figure takes the carrier’s total losses for April and May to $489mn pre-tax.
In April Allstate said it was expecting first quarter catastrophe losses to hit $361mn, with $222mn of that total from events in March alone.
The carrier said after-tax the estimated losses were likely to be $285mn for the quarter and $175mn for March, while it also revealed it had seen an uptick in estimates for losses in prior quarters, which had forced it to bolster reserves, adding to the bill for the period.
Last month the US personal lines heavyweight said it had “substantially placed” its 1 June cat XoL reinsurance programme and with increased limit from both the traditional and ILS markets.
The Illinois-headquartered insurer said in a 10-Q filing that it purchased $2.6bn of cat reinsurance limit from the traditional market that incepts on 1 June 2018 in addition to $1.2bn of cover from the ILS markets.
In contrast, for the 1 June 2017 renewal, Allstate bought lower limits of $2.5bn traditional and $1.1bn from ILS investors, according to the same filing from this time last year.