Allstate Corp. (ALL) swung to a second-quarter loss as the
company's bottom line took a sharp hit from a wave of severe storms
that swept the nation this spring.
Among publicly traded home and auto insurers, Allstate had the
biggest exposure to a string of deadly tornadoes that plagued the
country this spring. Allstate had previously estimated catastrophe
costs of $2.3 billion before taxes for the period, the largest
disaster tally for the company since Hurricane Katrina struck the
U.S. in 2005. During the second quarter, Allstate experienced 33
catastrophe loss events, including five tornadoes, three wildfires
and 25 wind or hailstorms.
Earlier this month, fellow insurer Travelers Cos. (TRV) reported
it swung to a second-quarter loss under the heavy weight of $1.09
billion in after-tax catastrophe losses.
Allstate reported a loss of $620 million, or $1.19 a share,
compared with a year-earlier profit of $145 million, or 27 cents a
share. The operating loss, which strip out investment gains and
losses, was $1.23 a share, versus a year-earlier operating profit
of 81 cents. Premiums written slipped 0.4% to $6.61 billion.
Analysts polled by Thomson Reuters expected a per-share loss of
$1.56 on $6.58 billion in net premiums written.
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--leapt to 123.3% from 96.8% a year
earlier.
Shares closed Friday at $27.72 and were inactive premarket. As
of Friday's close, the stock is down 13% since the start of the
year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com