A huge catastrophe loss is declared by Allstate Corporation in June

A huge catastrophe loss is declared by Allstate Corporation in June

Allstate Corporation has announced a loss of around $204 million for the month of June. The loss after the taxes is calculated to be around $161 million. The insurance company has said that the avalanche loss happened due to 10 events which cost the company around $181 million before tax and $143 million after paying the taxes. 

Moreover, the unfavorable prior period reserve has got again estimated. The company has said that the avalanche loss is due to the bad weather around the states. It has said that the Canadian province of Alberta and the US states of Texas and Pennsylvania faced three severe wind and hail storms weather. 

On June 13, Alberta and Calgary faced hailstorm which amounts to a loss of $1.2 billion to the company. Moreover, the hailstorm is taken to be the fourth costliest natural disaster.

Allstate had already announced $982 Million before tax, and around $776 Million after the tax losses in the month of April and May. If we sum up the total loss for Allstate Corporation in the second quarter of the ongoing year it will become around $1.19 billion before tax and $937 million after paying the taxes.

The loss as we observe is huge and it will take much time to recover and come to a break-even point for the company. Moreover, the ongoing Pandemic situation will also become a hindrance to the recovery process. So it’s a long way to go for Allstate Corporation and it will take time as well.

Leave a Reply

Your email address will not be published. Required fields are marked *