According to Allstate, policyholders in a high-rate environment tend to be more hesitant to file claims to avoid raising their insurance rates even further.

However, these favorable trends were partly offset by higher catastrophe losses during the fourth quarter, which rose to $412 million from $237 million one year ago.

The company said losses were driven higher primarily by wildfires that swept through southern California last October. The impact of catastrophe losses on the quarterly combined ratio grew to 6.5 from 4 year-over-year. Still, the insurer's property-liability combined ratio for the 2003 fourth quarter improved to 92.3 from 97.8 in the comparable period.

Net investment for the quarter was $435 million, improving from $400 million reported during the 2002 fourth quarter. The company also was helped by realized capital gains to the amount of $58 million, compared to a realized capital loss of $158 million a year ago.

"Allstate had a strong quarter and an outstanding year," said Allstate Chief Executive Edward Liddy. "I am very pleased with our performance in the fourth quarter, which showed good top line growth, strong unit growth for Allstate brand standard auto and homeowners, and outstanding bottom line results," Mr. Liddy said.

For the full-year 2003, Allstate Corp. more than doubled its net income from 2002, to $2.705 billion from $1.134 billion one year ago.

Allstate property-liability underwriting income for the year also rose, to $1.332 billion from $263 million in 2002. Property-liability premiums written for the year came in at $25.187 billion, up from $23.917 billion during 2002. The full-year net investment income for 2003 was $1.677 billion, up from $1.656 billion in 2002.

Mr. Liddy said company goals remain unchanged "and our strategy continues to be validated and well executed. We are seeking long-term, sustainable, profitable growth, and 2003 helped us continue the momentum that began more than eight quarters ago."

The Allstate Corporation is the second-largest home and auto insurer in the United States behind State Farm Insurance Companies in Bloomington, Ill. The company sells auto, homeowners, and other property-casualty and life insurance products in Asia, Europe, and the Americas.