* Q2 operating EPS $0.87 vs Wall Street average estimate
* Disaster losses roughly a third of 2011
* Shares rise 3.6 pct after hours
July 31 Home and auto insurer Allstate Corp
swung to a profit in the second quarter, smashing
recently lowered Wall Street expectations, after its disaster
losses were less than half of the record-breaking level they hit
Shares rose 3.6 percent to $35.53 after hours from a $34.30
Earlier this month, the largest publicly traded home and
auto insurer in the United States, said its second-quarter
disaster losses were $820 million, roughly a third of what they
were after devastating tornadoes in the second quarter of 2011.
Allstate reported a net profit of $423 million, or 86 cents
per share, compared to a year-earlier loss of $624 million or
$1.19 per share.
On an operating basis, the company earned 87 cents per
share. Analysts polled by Thomson Reuters I/B/E/S had expected
on average, earnings of 51 per share.
As the scope of catastrophe losses in the second quarter
became clear, analysts sharply lowered their forecasts. One
month ago, the Street average earnings estimate was 90 cents per
Allstate, which has been on a campaign to shed unprofitable
business and improve margins, said premiums written grew nearly
4 percent in the quarter over a year earlier.
Overall policies in force fell 0.6 percent from the end of
last year, as the company's other brands grew but could not
offset declines in Allstate-branded home and auto policies.