Allstate earnings hard hit

U.S. insurer Allstate is among the first to report post-September 11 results, and the picture is not a pretty one. Not only was the company hit with exposures from the September 11 attacks, to the tune of US$32 million. But higher homeowners claims and investment losses were largely to blame for an earnings drop of 65%.Net earnings for the third quarter of 2001 were US$226 million, down from $664 million for the same period last year. This means earnings per share of $0.32, as opposed to $0.87 last year. Revenue also fell, but by just 4%.Allstate shares, which were trading on the NYSE at over $40 each prior to September 11, are now down to under $34. Homeowners losses were due to increased weather and mold claims, the company says. As well, general investment market conditions have hit the company’s portfolio.