NORTHBROOK, Ill. (AP) — Allstate Corp.’s profit grew in the second quarter, as the insurer benefited from higher revenue and capital gains, plus lower catastrophe-related losses.
The company said Wednesday that net income rose 2.6 percent to $434 million, or 92 cents per share, in the three months ended June 30. That compares with net income of $423 million, or 86 cents per share, in the prior-year quarter.
Revenue increased 6 percent to $8.8 billion from $8.3 billion, aided by gains in property-liability, life and annuity premiums. Realized capital gains also helped drive revenue, swelling to $362 million from $27 million in the same quarter last year.
Analysts’ consensus forecast called for earnings of 97 cents per share on $7.03 billion in revenue, according to FactSet.
Operating income, which excludes investment gains and losses, grew to $529 million, or $1.12 per share, from $432 million, or 87 cents per share, in the 2012 quarter.
The Northbrook, Ill.-based company said its catastrophic losses slid 21 percent to $647 million from $819 million a year earlier.
The company’s property-liability combined ratio, excluding catastrophic losses and other items, edged down to 86.9 from 86.3.
The ratio is a sum of an insurer’s loss ratio and expense ratio. A ratio above 100 means that for every premium dollar taken in, more than a dollar went to cover claims and expenses. A figure below 100 means the company made a profit on its insurance operations.
Allstate shares ended regular trading up 7 cents at $50.98. The stock added 52 cents to $51.50 in after-hours trading following the release of the earnings report. Shares are up 27 percent this year.