The Northbrook, Ill.-based Allstate, which is the second-largest U.S. personal-lines insurer, behind State Farm Insurance, said it is benefiting from higher earned premiums and lower claims.

More specifically, the company remarked that it is seeing higher property-liability earned premium as well as lower claims?thanks to favorable auto and homeowners loss frequency trends?and lower catastrophe losses.

Additionally, Allstate estimated that its 2004 first-quarter net written premium increased some 6.5 percent to $6.33 billion, compared to one year ago. Catastrophe losses in the first quarter, Allstate noted, are expected to be around $100 million, dropping off from $133 million during the 2003 first quarter.

Commenting on the estimated first-quarter results, Chief Executive Edward Liddy observed that while the company benefited from relatively mild weather during the first quarter, "we're encouraged by the increasing growth in written premiums and the continuing strong underwriting profitability we saw in the quarter."

Mr. Liddy added that come April 20, Allstate intends to make public the company's full earnings results for the 2004 first quarter. "At that time, we will also discuss the positive impact our strong first-quarter results are expected to have on the outlook for the full year," Mr. Liddy said.