Restructuring costs affected financial services unit performance at Allstate Corp. during the first quarter.
Allstate, Northbrook, Ill., is reporting $1.4 billion in net income for the latest quarter on $9.1 billion in revenue, up from $1.1 billion in net income on $8.7 billion in revenue for the first quarter of 2005.
Allstate Financial, the company division that sells products such as life insurance and annuities, is reporting $144 million in operating income for the first quarter on $1.5 billion in revenue, compared with $149 million in operating income on $1.4 billion in revenue for the first quarter of 2005.
Unit premiums and deposits fell to $2.7 billion, from $4 billion.
Premiums and deposits were down mainly because of weakness in fixed annuity sales and a decision to pull back from the sale of institutional investment products, Allstate says.
Operating income was down in part because of restructuring charges related to a decision to transfer the Allstate variable annuity business to Prudential Financial Inc., Newark, N.J., through a reinsurance arrangement, Allstate says.