Allstate Posts Q1 Profit Of $665M
NU Online News Service, April 17, 4:10 p.m. EDT?The Allstate Corporation showed improving financial health in its first quarter with net income of $665 million, or 94 cents a share, a jump from $95 million, or a 14-cents-per-share, profit it posted one year ago.
Allstate's revenue also increased in its first quarter, to $7.86 billion from $7.3 billion posted a year earlier. The improvement was achieved, the Northbrook, Ill.-based company said yesterday, even as policies in force for its auto insurance decreased a little.
The company also reported that its property-liability premiums earned increased by more than five percent to $6 billion, compared to $5.7 billion in the first quarter of 2002. And property-liability underwriting income also got a boost, increasing by $370 million to post $413 million for the 2003 first quarter, up from $43 million one year ago. Positive factors contributing to this increase include higher earned premiums, lower mold losses, and lower prior year reserve strengthening, Allstate said.
Looking forward to the rest of 2003, the company also revised up its guidance for operating income for this year to a $3.35-to-$3.50 range on a per-diluted-share basis, compared with the previous February guidance of $3.20 to $3.40 per diluted share.
"We are extremely pleased with our results this quarter," said chairman, Edward M. Liddy, president and chief executive officer for Allstate.
"Our property-liability business is clearly performing well, and benefiting from the targeted management actions we implemented across the business over the last two years," Mr. Liddy said.
"Our Allstate auto and homeowners lines are hitting their return targets. Our strategic risk management process is working well and is enabling us to attract excellent customers whom we expect to retain for the long term."
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