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Letter to the Editor
Thursday February 6
Allstate's Q4 Net Income Up 69%
Allstate Corp.'s fourth-quarter net income surged 69 percent amid a 3.1 percent rise in revenue, as results were helped by rate increases, an improvement in the loss ratios and lower expenses.Allstate reported net income of $447 million, or 63 cents a share, compared with net income of $264 million, or 37 cents a share, a year earlier. Revenue increased to $7.59 billion from $7.36 billion.
Allstate also posted operating earnings, which represent net income before the effect of realized capital gains and losses, dividends on preferred securities and other items.
Excluding restructuring charges of $15 million, Allstate reported operating earnings of $633 million, or 89 cents a share, in the latest quarter.
Allstate said results in the latest quarter reflect higher property-liability premiums earned and increased life and annuity premiums and contract charges at Allstate Financial.
For 2002, Allstate reported net income of $1.13 billion, or $1.60 a share, compared with year-earlier net of $1.16 billion, or $1.60 a share. Revenue increased 2.5 percent to $29.58 billion from $28.87 billion in 2001.
Operating earnings for the year rose to $2.08 billion, or $2.92 a share, from $1.49 billion, or $2.06 a share, in 2001. Excluding restructuring charges, the company said it had operating earnings of $2.15 billion, or $3.03 a share, up from $1.58 billion, or $2.18 a share.
"The actions we took to improve our underwriting performance resulted in an improvement in the loss ratios despite increasing prior year reserves," Chairman, President and Chief Executive Edward M. Liddy commented. "Our constant focus on expenses also resulted in a lower expense ratio for the year."
Allstate is projecting operating earnings, excluding restructuring charges, of $3.20 to $3.40 a share for 2003.
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