US insurer Allstate has announced an estimated pre-tax catastrophe loss burden for the month of June 2025 of $619 million. But the second-quarter 2025 total has now risen to $1.99 billion, which is a relatively heavy start for the annual aggregate year of its catastrophe bonds.
Once again, severe weather events have been the driver of another costly month of catastrophe losses for the organisation.
The company disclosed that the $619 million pre-tax, or $489 million after-tax, of catastrophe losses for June 2025 came from 15 events during the month.
Per Allstate, roughly 70% of those losses were related to three geographically widespread wind and hail events.
This number, combined with April’s estimate of $594 million ($469 million after-tax) and May’s $777 million ($614 million after-tax), brought the total of catastrophe losses for Q2 to $1.99 billion, pre-tax.
It’s worth highlighting that June 2025’s total is substantially higher than the amount of losses suffered a year ago. June 2024’s total resulted in $230 million of pre-tax catastrophe losses for Allstate, while the April, May, and June 2024 total reached slightly higher at $2.1 billion.
This means that the run-rate for the new annual risk period for the aggregate reinsurance coverage provided by Allstate’s catastrophe bonds is currently slower moving than a year ago.
As a reminder, Allstate’s aggregate reinsurance, which is all provided by some of its Sanders Re cat bonds, begins accumulating qualifying losses over the year from April 1st.
As we’ve explained in a previous article, with a $50 million per-event retention under the terms of those cat bonds, not all of these pre-tax losses will qualify, as some may have come from smaller events or affected subject business that is not covered under the cat bonds.
Following Allstate’s 2025 reinsurance renewal, which was completed in time for April 1st, the aggregate Sanders Re cat bonds now sit above an attachment level of $4 billion for this current risk period.
Therefore, while a chunk of the aggregate retention has likely been eroded by losses from April, May, and June, the catastrophe bonds will remain some billions away from attaching at this time, we assume.
