Allstate
-
Allstate sets the spread for riskier second layer at 1,275 bps in the upper range of the initial guidance.
-
Premiums on the cover have moved to the mid to high end of expectations.
-
The bond will cover named storms, earthquake, severe weather and other perils, according to sources.
-
The company's cat losses for the reinsurance year to date have reached $1.55bn. -
Losses could have eroded as much as 44 percent of the carrier's aggregate deductible.
-
Nationwide, USAA and Allstate are other national carriers with significant property catastrophe market shares in the states.
-
Some 40 percent of the monthly loss estimate stemmed from a single severe hail event .
-
The insurer increased its reinsurance spend by 10 percent in the quarter after adding $400mn top-layer coverage.
-
The carrier’s Q2 cat loss figure has now reached $1.07bn.
-
The insurer said half of the losses came from one weather event in the Midwest.
-
This will have implications for Allstate, State Farm, USAA and other insurers which have sued the utility over Camp Fire losses.
-
The additional aggregate reinsurance protection comes from its Sanders Re II catastrophe bond.
