Allstate Expects Up To $930M For Q1 Profit

NU Online News Service, April 8, 3:55 p.m.EDT?The Allstate Corporation said it will reportbetter-than-expected first-quarter results, with net income in therange of $900 million to $930 million?improving from $665 millionin income the company reported during the 2003 firstquarter.[@@]

Following the Allstate's announcement, the company's shares,listed on the New York Stock Exchange, jumped more than fourpercent in the morning trading, to reach their highest level since1998.

The full 2004 first-quarter figures are expected to be releasedApril 20.

The Northbrook, Ill.-based Allstate, which is the second-largestU.S. personal-lines insurer, behind State Farm Insurance, said itis benefiting from higher earned premiums and lower claims.

More specifically, the company remarked that it is seeing higherproperty-liability earned premium as well as lower claims?thanks tofavorable auto and homeowners loss frequency trends?and lowercatastrophe losses.

Additionally, Allstate estimated that its 2004 first-quarter netwritten premium increased some 6.5 percent to $6.33 billion,compared to one year ago. Catastrophe losses in the first quarter,Allstate noted, are expected to be around $100 million, droppingoff from $133 million during the 2003 first quarter.

Commenting on the estimated first-quarter results, ChiefExecutive Edward Liddy observed that while the company benefitedfrom relatively mild weather during the first quarter, "we'reencouraged by the increasing growth in written premiums and thecontinuing strong underwriting profitability we saw in thequarter."

Mr. Liddy added that come April 20, Allstate intends to makepublic the company's full earnings results for the 2004 firstquarter. "At that time, we will also discuss the positive impactour strong first-quarter results are expected to have on theoutlook for the full year," Mr. Liddy said.