Allstate Corp. reported its estimated pretax catastrophe losses for the second quarter of 2025 at $1.99 billion. This is a slight decline from $2.12 billion during the same period last year. The company shared this information in a recent statement, highlighting the impact of severe weather events on its financial performance.
In June alone, Allstate attributed $619 million of its losses to 15 separate incidents, with about 70% of those losses resulting from three major storm events that involved strong winds and hail. This trend of severe weather has been a significant factor in the company’s overall losses.
Earlier in the year, Allstate estimated that its catastrophe losses for January and February reached $1.17 billion. These figures included significant wildfire activity in California, which contributed to the company’s overall exposure to risks as it moved into the second quarter.
In addition to the losses reported for June, Allstate recorded $777 million in catastrophe losses in May. Combined with losses from April, the total for those two months reached $1.37 billion. Similar to June, a large portion of these losses was tied to severe wind and hail events, emphasizing the ongoing challenges posed by extreme weather patterns.
Despite these losses, there were some positive developments for Allstate. The company reported a 0.6% increase in total policies in force under its Allstate Protection segment in June compared to the previous year. Auto insurance policies grew by 0.5%, reaching 25.2 million, while homeowners policies rose by 2.3% to 7.6 million.
In the first quarter of 2025, Allstate’s auto segment showed mixed results. Although the number of policies in force decreased by 0.4%, new business applications surged by 31.2% compared to the same quarter last year. The combined ratio for the auto line improved to 91.3%, which the company credited to favorable loss trends and the release of reserves from previous years.
Allstate’s property-liability segment also saw growth, with earned premiums rising by 11.6% during the first quarter, driven by ongoing increases in premium rates and strong customer retention in both auto and homeowners insurance.
Looking ahead, Allstate is set to release its second-quarter earnings during a conference call scheduled for July 31. This will provide further insights into how the company is managing its financial performance amid ongoing severe weather challenges.