Allstate Q4 Profit Drops

(RTTNews) - Allstate Corp. (ALL) reported that its fourth quarter net income applicable to common shareholders dropped to $790 million or $2.73 per share from the prior year's $2.60 billion or $8.45 per share, primarily driven by lower underwriting income, partially offset by higher net investment income.

Adjusted net income of $796 million, or $2.75 per share, was below the $1.6 billion generated in the prior year quarter. The decrease reflects higher non-catastrophe losses, unfavorable non-catastrophe reserve reestimates and increased catastrophe losses, partially offset by higher earned premiums.

Total revenues were $13.0 billion, an increase of 18.7% from the prior year quarter, reflecting higher revenues from the National General acquisition and increased net investment income. Protection Services revenues also increased, reflecting growth at Allstate Protection Plans.

Analysts polled by Thomson Reuters expected the company to report earnings of $2.75 per share and revenues of $10 billion for the quarter. Analysts' estimates typically exclude special items.