Allstate beats expectations, ready for Sandy claims
(Reuters) - Home and auto insurer Allstate Corp (ALL.N) reported a larger profit for the third quarter on a decline in disaster losses and improving margins, as its chief executive said storm Sandy would not materially affect the company's overall financial condition.
Allstate, one of the biggest insurers in the northeastern United States, is considered one of the most exposed companies to insured losses from Sandy, which some estimate to be as much as $15 billion.
"It's too early to estimate the impact of Hurricane Sandy on Allstate's fourth quarter earnings," CEO Tom Wilson said in a CNBC interview.
He estimated that Sandy should end up among the five-worst U.S. hurricanes of all time by losses but said it "will not be meaningful in terms of our stability".
Analysts expect that most insurers will be easily able to handle claims from Sandy because disaster losses are down sharply this year, giving them extra leeway.
Allstate reported a net profit of $723 million, or $1.48 per share, compared with a year-earlier profit of $175 million or 34 cents per share.
On an operating basis, Allstate earned $1.46 per share. Analysts polled by Thomson Reuters I/B/E/S on average expected earnings per share of $1.13.
Disaster losses were down more than $800 million from a year earlier, when the company faced claims for Hurricane Irene.
(Reporting by Ben Berkowitz and Aman Shah; Editing by Leslie Gevirtz, Andrew Hay and Edwina Gibbs)
- Housing, jobs data weaken, but overall economic picture still upbeat
- Putin critic Khodorkovsky in Germany after pardon |
- Target probe eyes overseas hackers; stolen cards for sale online
- Pizza outlet attacked as India, U.S. fail to cool diplomat row |
- New York Mayor-elect's reputation for lateness parodied on Twitter