Allstate

Allstate expects its first-quarter pre-tax catastrophe losses to reach $680mn.

Allstate was targeting $350mn from the US multi-peril bond, however a projected $50mn layer of Class A notes will no longer be issued.

The February total compares with $361mn of catastrophe losses for the first quarter as a whole last year.

The four-year bond will operate on a per-occurrence and annual-aggregate basis covering named storms, earthquake, severe weather and other perils.

The total included $517mn due to Camp Fire claims with the rest from Hurricane Michael.

The utility expects to source enough cash to finance its ongoing operations.

The carrier’s $1.2bn gross loss from the two wildfires would trigger the carrier’s nationwide programme, which attaches above $500mn.

The Camp Fire and Woolsey Fire have now destroyed 10,000 and 504 buildings respectively.

Chubb and Travelers also face losses of around $400mn each should total insured losses hit $10bn, the analyst said.

USAA is among the top 10 carriers with exposure to the loss and has already eroded aggregate deductibles for the current year of cover after this year’s hurricane season.