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Allstate Announces January 2025 Catastrophe Losses and Policies in Force

1. Allstate reports January catastrophe losses estimated at $849M after-tax. 2. California wildfires drove losses, largely offset by $1.40B reinsurance recoveries.

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FAQ

Why Neutral?

The reported catastrophe losses are significant but largely mitigated by reinsurance recoveries. Historical instances show that insurers often face such events without long-term damage if losses remain within anticipated risk models.

How important is it?

While the loss event is material and newsworthy, it fits within the expected risk profile of an insurer operating in a wildfire-prone region. The mitigating impact of reinsurance recovers lowers the overall adverse effect on pricing.

Why Short Term?

Investors may react in the near term due to headline loss figures, but structural risks for Allstate remain stable over time. Similar events have led to short-lived market jitters in the insurance sector.

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PGRTRVAIG
NORTHBROOK, Ill.--(BUSINESS WIRE)--The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of January of $1.08 billion or $849 million, after-tax. Catastrophe losses included three events with approximately $1.07 billion related to the California wildfires. The California wildfire event estimate includes reinsurance reinstatement premiums, an estimated California FAIR Plan assessment and is net of estimated reinsurance recoveries of $1.40 billion. Allstat.

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