US primary insurer Allstate has reported a relatively low month of catastrophe losses for May 2026, announcing $289 million pre-tax. This represents a 63% decrease from the prior year, and when combined with April’s losses, this brings Allstate’s total pre-tax catastrophe losses for April and May 2026 to $1.16 billion.
As a reminder, the risk period for Allstate’s annual aggregate catastrophe bonds under its Sanders Re program, which sit in the nationwide aggregate tower, begins on April 1st each year.
May has typically always been one of the months with higher catastrophe losses reported by Allstate, given it often features severe and convective weather events.
In 2025, the insurer reported $777 million of pre-tax losses, in 2024, it was $1.4 billion; in 2023, it was $893 million; in 2022, $436 million; in 2021, $213 million; and in 2020, it was $350 million.
Consequently, Allstate’s $289 million in pre-tax catastrophe losses ($228 million after-tax) for May 2026 is well below the recent average. It also slows the run-rate for the new annual aggregate risk period, despite April’s heavier loss burden.
Allstate currently has annual aggregate protection from only one cat bond tranche, the $150 million Class B tranche of notes issued through its Sanders Re III Ltd. (Series 2023-1) catastrophe bond sponsorship.
For the new annual risk period, those notes attach at $4.78 billion of losses, running across a share to $5.28 billion for the insurer and cover losses across all US states except Florida.
The notes are also subject to a $50 million per-event deductible, which means only catastrophe losses of $50 million or greater qualify to erode the retention sitting beneath their attachment. That means not all of the pre-tax monthly totals announced are ever able to qualify, although April did see some larger events that likely would have.
Moreover, as part of its 2026 reinsurance renewal this year, Allstate purchased a new $1 billion aggregate excess of loss reinsurance arrangement, which attaches high up at $8.5 billion of losses.
However, as we’ve explained before, this new $1 billion of aggregate reinsurance limit only features a much smaller $1 million event deductible, which means that the majority of Allstate’s catastrophe losses for covered events are expected to qualify to erode the retention beneath this reinsurance layer, it is assumed.
As a result, only an as-yet-unknown portion of the $1.16 billion in combined pre-tax losses Allstate has reported for April and May will actually qualify towards eroding the cat bond retention, while more of it likely erodes the retention for the excess-of-loss reinsurance.
Read all about Allstate’s recent reinsurance renewal in this article.
View details of every catastrophe bond ever sponsored by Allstate here.
