Home and auto insurer Allstate Corp. (ALL: Quote), Tuesday reported a swing to a profit in the second quarter from a loss last year, as less natural disasters in the period helped bring down catastrophe losses by more than half. Earnings and revenues for the quarter easily trumped analysts' expectations.
Catastrophe losses for the period dropped to $819 million from the record level of $2.34 billion last year. Tornadoes and hurricanes had deeply impacted Allstate's bottom line in second quarter last year.
Chief Executive Thomas Wilson said, "We made good progress this quarter on our 2012 operating priorities of maintaining auto profitability, improving returns in homeowners insurance and annuities, growing insurance premiums, and proactively managing our investments and capital."
Consolidated revenues for the quarter rose to $8.28 billion from $8.08 billion in the corresponding quarter last year.
Property-liability insurance premiums written, which accounts for the most business, rose to $6.86 billion from $6.61 billion last year. Analysts estimated revenues of $6.82 billion for the quarter.
Property-Liability combined ratio for the quarter improved to 98.0 from 123.3 in the prior year period. Combined ratio is a measure of profitability used by insurance companies. A ratio below 100 percent indicates that the company is making underwriting profit while a ratio above 100 percent means it is paying out more money in claims than it is receiving from premiums.
Allstate second-quarter profit was $423 million or $0.86 per share, compared to a loss of $624 million or $1.19 per share last year.
Operating income, which excludes few items, rose to $432 million or $0.87 per share from an operating loss of $647 million or $1.24 per share last year. On average, 27 analysts polled by Thomson Reuters expected earnings of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.
Book value, calculated by total assets minus intangible assets and liabilities, at June 30 was up 12.8 percent to $39.73 per share, compared $35.21 per share last year.
ALL closed Tuesday's trading at $34.30, down $0.46 or 1.32%, on a volume of 5.7 million shares on the NYSE. The stock further gained $1.35 or 3.94% in after-hours trade.
| || |
| To receive FREE breaking news email alerts for Allstate Corp and others in your portfolio|
by RTT Staff Writer
For comments and feedback: email@example.com