Allstate reported $2.1 billion in net income applicable to common shareholders for the quarter ended Sept. 30, down from $3.7 billion a year earlier. A larger catastrophe burden and unfavorable investment and derivative performance contributed to the lower quarterly profit.
Catastrophe losses rose to $1.65 billion from $558 million. Investment and derivative results shifted to a $545 million loss from a $252 million gain; Allstate linked the investment losses primarily to higher interest rates. Increased premiums earned partly offset those pressures, the company said.
Adjusted net income was $2.5 billion, equal to $9.76 per diluted share, compared with $3 billion in the year-earlier quarter. Revenue reached $17.3 billion, an increase of $93 million, or 0.5%, from a year earlier.
Allstate reported 217.6 million policies in force. Property-Liability policies grew 3.3% year over year, with auto policies up 3.4% and homeowners policies up 3.3%. The company also said it returned about $1.5 billion to shareholders through share repurchases and dividends.
Allstate filed a Form 8-K with the U.S. Securities and Exchange Commission on Nov. 4, attaching its earnings release and investor supplement. It is scheduled to discuss the results on a conference call Thursday, Nov. 5, at 9 a.m. ET.
