Property and casualty insurer Allstate Corp., with brokerage and claims-processing operations in Connecticut, said Wednesday it was profitable in the first-quarter, reversing a year-ago loss, even as costs rose for insuring against damage caused by catastrophes including severe winter weather in the eastern United States, The Associated Press reports.
Those catastrophes were “near record” losses during the first quarter for Allstate, totaling $648 million, Tom Wilson, Allstate’s chairman and chief executive, said in a statement.
Last week, Hartford commercial and property insurer Travelers Cos. said damage caused by the same storm, as well as an earthquake in Chile led it to post a 2 percent decline in its first-quarter profit.
Allstate, based in Northbrook, Ill., said its net income totaled $120 million compared to a loss of $274 million a year ago. Net earnings per share were 22 cents versus a loss of 51 cents last year.
Operating income, which excludes investment gains and losses, fell 17.4 percent to $375 million, or 69 cents per share, versus $454 million, or 84 cents per share, a year ago.
Total revenues for the most recent quarter were $7.75 billion, a decrease of nearly 2 percent from the first quarter of 2009.
Results came short of Wall Street’s expectations for earnings of 79 cents per share, according to Thomson Reuters. Analysts typically exclude investment gains and losses from their estimates.
Allstate’s shares closed Wednesday up 50 cents, or 1.5 percent, at $33.77. They fell 95 cents or 2.8 percent in after-hours trading.Top of Form
