Allstate: $330 Million Fire Loss Impacts Earnings
NU Online News Service, Nov. 14, 12:05 p.m. EST? Northbrook, Ill.-based Allstate Corp. said it estimates losses from California’s catastrophic wildfires will cost it between $290 million and $330 million and will affect earnings.
The company said its after-tax loss would amount to $190-to-$215 million, or between 27 and 30 cents per share.
Losses range from total home loss to smoke damage and claims related to living expenses due to evacuation and displacement.
Allstate went on to say that at the end of the third quarter of this year it estimated its operating income per share would range between $3.65 and $3.80 a share. It said catastrophe losses in the fourth quarter could exceed its estimates of $110-to-$150 million. Adding in restructuring and related charges, its earnings guidance is now $3.60 to $3.75 per share for 2003.
The Insurance Information Network of California’s current estimate for total insured losses from the fires that began Oct. 21 stands at $2 billion. Moody’s and Standard and Poor’s have issued loss estimates ranging from $2.5-to-$3.5 billion.