DOW JONES NEWSWIRES
Allstate Corp.'s (ALL) first-quarter earnings more than
quadrupled as catastrophe losses plunged, revenue increased and the
year-earlier quarter was stung by hefty capital losses.
Shares rose 4.1% to $33.25 after hours as the profit surged past
analysts' estimates. As of the close, the stock had fallen 4% the
past year.
"Allstate made continued progress on improving returns and also
benefited from lower catastrophe losses in the first quarter," said
Chairman and Chief Executive Thomas J. Wilson.
The nation's biggest personal-lines insurer, Allstate had been
stung recently by higher claims costs that hurt its operating
income. In February, the company raised its dividend, typically a
show of strength and a move numerous companies have been making in
the wake of economic improvement.
In the most recent quarter, catastrophe losses dropped to $333
million from $648 million a year earlier.
Allstate reported a profit of $519 million, or 97 cents a share,
up from $120 million, or 22 cents, a year earlier. Excluding
capital gains and losses and other items, earnings rose to 93 cents
from 69 cents. Analysts polled by Thomson Reuters had most recently
forecast earnings of 68 cents.
Total revenue jumped 4.5% to $8.1 billion.
The company's property-liability combined ratio--a gauge of how
much was paid out as losses or expenses compared with each dollar
collected in premiums--fell to 94.9% from 98.9%.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com