Shares of Allstate Corp. (NYSE: ALL) were down in morning trading on Thursday after the insurance company estimated losses in the third quarter to be between $675 million and $725 million and adjusted net loss to come in the range of $400 million to $450 million.
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The insurer added that property liability costs continued to rise “in both bodily injury and physical damage coverages. As a result, the estimated cost to settle claims was increased resulting in increases in both current and prior year reserves.”
Allstate added that it is also facing higher costs to replace vehicles. In the month of September, Allstate implemented auto insurance rate hikes of 16.2% across 8 locations, “resulting in a total Allstate brand insurance premium impact of 0.9%.”