Allstate Profit Dinged by Catastrophe Losses

NORTHBROOK, Ill. (TheStreet) -- Allstate (ALL Quote) shares were falling in after-hours trading after the insurer posted a lower-than-expected profit weighed by a big increase in catastrophe losses.

Allstate earned $389 million, or 72 cents per share, in the second quarter, vs. $25 million, or 5 cents per share, in the year-ago period. Operating income, which excludes investment gains and losses, fell 56.5% to $297 million, or 55 cents a share. That was below the estimate of analysts polled by Thomson Reuters, who predicted a profit of $1.12 a share.

Allstate beat on top-line estimates, however, posting a 14.5% rise to $8.48 billon. Analysts had expected revenue of $8.20 billion.

Catastrophe losses in the quarter climbed 17.2% to $818 million, despite no major hurricanes.

Allstate, however, reported $15.1 billion in capital, a $2.8 billion increase from the first quarter, and a $13.8 billion capital surplus at Allstate Insurance Co. The company earlier this year turned down the government's offer of aid from the Troubled Asset Relief Program, citing its strong capital position.

Shares were falling 2.7% in recent after-hours trading.

-- Written by a staff member of TheStreet.com in New York.