ALLSTATE’S INCOME RISES 30% DESPITE SURGE IN CATASTROPHE LOSSES

US property/casualty and life group Allstate saw its third-quarter net earnings rise 30% to $637m, as improved motor insurance results offset a 79% increase (to $861m) in catastrophe losses. Adjusted earnings per share came in at $1.60 and easily beat analysts’ forecast of 88¢. Underwriting income in the group’s core property/liability segment rose to $429m from $355m, as earned premiums grew 3.2% to $8.12bn and claims costs edged down 0.1% to $5.55bn. The combined ratio improved by 0.8 points to 94.7%. The improved results also included a 12.7% increase in investment income to $843m and a more than tripling of realised capital gains to $103m. For the first nine months of the year, the Illinois-based group’s net income jumped 95% to $1.85bn, as property/liability underwriting income more than doubled to $1.16bn from $414m.