Allstate

Chris Cole has worked on Allstate deals since the 1990s, when he advised on a raft of asset disposals.

The transaction is expected to raise the insurer's market share to around four percent for business acquired through independent agents.

Major carrier M&A has resumed as the impediments of March's stock market crash and Covid-19 eased, with Allstate striking a deal late yesterday to acquire National General Holdings for $4bn in cash.

The deal will generate proceeds of more than $1.5bn for the Karfunkel family and including a dividend is pitched at 69 percent more than Tuesday's close.

Four severe weather events in Texas and the Midwest generate about 80 percent of the claims.

Media reports suggested Allstate is preparing to lay off potentially thousands of its employees.

Allstate has extended its 15% premium rebate by a month. Notably, a few other companies have also added to their original rebates including State Farm, USAA and American Family.

More than half the losses came from two major wind and hail storms.

The “empty-street” economy has left auto-exposed names in a relatively favorable position – so much so that they have been returning premiums to clients.

Two of the largest carriers’ Q1 calls highlighted significant declines in miles driven and accident frequency, in line with our previous findings.

In the quarter, Allstate’s 15% premium refund contributed 2.4pts to its headline combined ratio.

The insurer added $121mn to its catastrophe treaty, covering it for up to $5bn of losses.