Home and life insurer Allstate (ALL) said the crazy winter weather in the Northeast last month met the definition of a “winter freeze catastrophe.”
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The company recorded estimated catastrophe losses of $277 million for the month of January, or $180 million after-tax. The losses were comprised of six events costing $271 million, with the remaining $6 million deriving from unfavorable reserve re-estimates from prior months.
One of the events was defined as a “catastrophe,” meaning it either produced pre-tax losses before reinsurance in excess of $1 billion and involved multiple first-party policyholders, or produced a number of claims in excess of a per-event threshold of average claims.
The Northeast has been suffering under one of its worst winters of snowfall as well as record-low temperatures. The bad weather has shaved several billion dollars off the economy, and triggered some of the worst days for air travel in several years.
Meanwhile, Credit Suisse (CS) cut its price target on Allstate on Thursday to $62 from $63 but maintained its “outperform” rating.
Shares of Allstate were down more than 2% to $66.64 in recent trade.