NU Online News Service, Aug. 05, 12:15 p.m. EDT

Actions to improve its Encompass subsidiary, lower growth and additional risk management actions in California and Florida negatively impacted property liability results for Allstate Corp., which reported a 62.7 percent drop in second-quarter net income.

Allstate Corp. posted net income of $145 million compared with $389 million a year ago for the second quarter. Overall results were affected by realized capital losses, including derivatives losses of $310 million.

Allstate has been reducing its geographic risk since 1996 in earthquake and other high-risk areas, including New York, said Thomas J. Wilson, chairman, president and chief executive officer during a conference call.

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