Allstate

The pricing has settled at the mid-to-top end of guidance across the three tranches.

This is Allstate’s first entry to the cat bond market in 2022.

The firm’s 2020 edition cat bond has also lost $3.2mn.

The firm took $411mn of losses in December, up 940.5% year-on-year, but losses since April are still below the aggregate attachment of its latest Sanders Re deals.

Spreads on the deal’s two reinsurance layers will be at the upper and lower end of coupons Allstate has offered on the cat bond market.

Allstate is offering its second Sanders Re catastrophe bond for the year, sized at $350mn across two tranches of notes, in its first ILS transaction with an element of aggregate risk since making a major claim earlier this year.

The insurer will recoup $986mn from its reinsurers in relation to Q3 cats, of which $689mn stems from Hurricane Ida.

The carrier also signalled unfavourable reserve developments linked to asbestos and environmental exposures.

The insurer’s net monthly cat losses reached $876mn.

Excluding prior-period reserve charges, the Illinois-based company estimated total cat losses at $211mn from 18 events.

The insurer will recoup $253mn from the Sanders Re aggregate bond, up 30% from the Q1 level forecast, but traditional treaty recoveries have fallen significantly.

Catastrophe losses for the month fell to $195mn, a sharp drop from the prior year’s $752mn.