Allstate Corp., Northbrook, Ill., reported 2005 fourth-quarter earnings declining 8.8 percent compared to last year as hurricane losses and lower investment income took their toll.

The nation's largest publicly-traded personal lines carrier reported net income of $1 billion for the fourth quarter, compared to $1.1 billion for the same period in 2004.

Consolidated revenues rose to $8.9 billion last quarter compared to $8.8 billion for the same period in 2004 for a .7 percent rise.

The combined ratio came in at 89 in the quarter, compared to 88.5 for the same period last year.

Catastrophe losses were $657 million for the quarter for a 59.5 percent rise compared to $412 million for the comparable year-ago period.

Bank of America property-casualty analyst Brian Meredith said results show that “competitive pressures and to some extent catastrophe management activity continue to hamper growth, with premium in force growth, new business generation and renewal retentions weak.”

But he also noted that loss costs for both auto and homeowners' business continue to improve as frequencies improve and severity moderates in both lines.

Net income for the full year rose 4.3 percent to $35.4 billion last year from $33.9 billion for 2004. The combined ratio rose to 102.4 for 2005 compared to 93 for the previous year.

Special Reports /

Allstate Q4 Net Declines

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