Allstate Swings To Profit, Catastrophe Losses Dip

SHAILA DANI

NEW YORK (AP) — A milder hurricane season this year helped Allstate Corp. turn a third-quarter profit as its losses for storms and other catastrophes dropped sharply.

The property and casualty insurer said Wednesday its net income rose to $221 million, or 41 cents per share, from a loss of $923 million, or $1.70 a share, in the year-ago period.

During the third quarter, Allstate posted catastrophe losses of $407 million, down about 78 percent from the $1.82 billion it recorded in the year-ago period, which included $1.4 billion in losses from Hurricanes Ike and Gustav.

Operating income, which excludes investment gains and losses, rose to $538 million, or 99 cents per share, from a loss of $190 million, or 35 cents per share a year ago.

Analysts polled by Thomson Reuters were expecting earnings of $1.01 per share from the Northbrook, Ill. company. Analysts typically exclude investment gains and losses from their estimates.

Revenue rose 3.6 percent to $7.58 billion from $7.32 billion a year ago, despite a decrease in net investment income and property-liability premiums.