(Bloomberg) -- Allstate Corp., the largest publicly traded U.S. car and home insurer, said fourth-quarter profit fell on a surge in auto claims.

Net income declined 41% percent to $489 million, or $1.18 a share, from $824 million, or $1.86, a year earlier, Northbrook, Illinois-based Allstate said Wednesday in a statement. Operating profit, which excludes some investment results, was $1.60 a share, beating the $1.35 average estimate of 24 analysts surveyed by Bloomberg.

Allstate has struggled with a high level of car claims as lower fuel prices put more people on the road last year. Chief Executive Officer Tom Wilson’s company has been raising prices for auto coverage while cutting expenses related to professional services and advertising for its Esurance brand, he said in an interview. The insurer has also been focusing on expanding home coverage.

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