Results reflects lower in realised capital losses, catastrophe losses and higher operating income
The Allstate has reported revenue of $7.6 billion for the third quarter of 2009, an increase of 3.6% compared to $7.3 billion in the third quarter of 2008. This reflected lower realized capital losses than the prior year quarter, partially offset by a decrease in net investment income and property-liability premiums.
Allstate’s third quarter operating income is $538m compared to operating loss of $190m in the same period a year ago. The operating income per dilute share is $0.99 compared to an operating loss of $0.35 in prior year quarter. Lower catastrophe losses contributed to the improvement in operating income.
The net income posted by the company is $221m and $0.41 per dilute share compared to a net loss of $923m and $1.7 per dilute share in the same quarter of previous year. The net income improvement reflected higher operating income and lower realized capital losses in the third quarter of 2009 compared to the prior year quarter.
Thomas Wilson, chairman, president and CEO of Allstate, said: “Allstate delivered strong operating income of $538 million and increased book value per share by 16% during the third quarter, thanks to our operating discipline and proactive approach to investing. For the third quarter in a row, customer loyalty increased and we delivered a double-digit percentage increase in new standard auto business. By focusing on the customer and maintaining our financial strength, we are building a foundation for sustainable growth.”
For the first nine month of 2009 the company has posted a revenue of 23.96 billion compared to 22.82 billion for the same period in 2008. Net income for the first nine months of 2009 is $336m compared to a net loss of $550m in the same period of 2008.