Allstate swings to profit on lower weather losses
The Associated PressA sharp drop in losses from storms and other catastrophes helped Allstate Corp. move to a third-quarter profit from a year-ago loss.
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.
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.
During the third quarter, Allstate posted catastrophic losses of $407 million, much lower than the $1.82 billion it recorded in the year-ago period.
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.
Allstate's shares were unchanged in afterhours trading. They closed the regular session down 12 cents, almost flat for the past year at $29.62.