Allstate Lists 69 Pct. Gain In 4th Quarter Net

The period was "a strong capstone for the year" and "I feel very good about what we've done," said Edward M. Liddy, the chairman, president and chief executive of the Northbrook, Ill. insurance giant, during a conference call with analysts.

He said the company will increase its advertising and marketing efforts this year to "grow our policies in force."

Mr. Liddy said the company this year would continue to implement rate increases "albeit at lower levels." He added that competitors who delayed taking rate increases last year might face resistance from regulators this year.

State Farm Mutual Insurance Company, based in Bloomington, Ill., has raised rates at a slower pace than Allstate and has said it expects to register a loss this year.

Mr. Liddy said there would be more increases for the company's Ivantage line of packaged homeowner and auto policies. He said the company's policy retention rate was less than a point "despite aggressive rate activity."

The company's asbestos reserves, he said, are adequate. Company Chief Financial Officer Dan Hale said that other companies, which were now doing reviews and adding to reserves were following "processes we've employed the last several years."

The company noted that in Texas, mold damage claims had been high in the past because that state formerly set policy wording that left out language limiting water claims to "sudden accidental" damage. With that phrase missing, homeowners were able to file claims for slow leaks- a frequent cause of mold damage.

Mr. Liddy said Allstate policies now have mold exclusions, the impact from Texas "appears to be waning" and "we don't see mold cropping up in any meaningful way."

The company said its combined ratio for the property-liability segment made a 6.7 point improvement dropping from 104.5 for the fourth quarter of 2001 to 97.8.

He said in the coming year the company would stay focused on driving down loss ratios.