Allstate Corp. says third-quarter net income decreased about 57 percent to $310 million due in large part to losses tied to the sale of Lincoln Benefit Life Co.
The Bloomington, Ill.-based insurer says it took an after-tax loss of $475 million loss related to Lincoln. Allstate Financial booked a third-quarter net loss of $360 million.
Looking at the corporation's property-liability business, net income increased to $656 million during the third quarter compared to $639 million during the same time a year ago, as the insurer saw only $128 million in catastrophe losses—the lowest amount during the third quarter since 2002.
The unit saw net premiums increase 5.3 percent over the third quarter 2012. The property-liability combined ratio during the third quarter was basically flat at 90, as the combined ratio at Allstate homeowners improved 7.6 points to 65.3. The insurer says rate increases and a decline in frequency and severity benefitted results.
CEO Thomas J. Wilson says standard auto policies increased from the third quarter 2012 "due to improved retention, higher new business sales and a less adverse impact from actions on homeowners policies." Esurance continues to operate at an unprofitable combined ratio—116.8—due to new business volume and high loss adjustment expenses, Allstate says,
Third-quarter underwriting income increased $38 million to $697 million compared to last year.
Allstate strengthened reserves with an additional $68 million during the quarter after a review of reserves in discontinued lines and coverages.
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