NEW YORK (
reported disappointing third quarter earnings, missing analyst expectations.
Allstate was trading down $1.48 at $32.48 a share this morning.
The insurer reported third-quarter net income of $367 million, or 68 cents per diluted share, compared to $221 million in the third quarter of 2009. Allstate's operating earnings came in at 83 cents a share, or $452 million, missing analyst expectations of 98 cents a share.
The earnings miss was primarily due to a decline in property-liability premiums, which fell by .6 percent in the third quarter. In addition, Allstate had a litigation charge that cost the firm about $70 million. Catastrophe losses totaled $386 million during the third quarter of 2010, compared with $407 million for the third quarter of 2009.
"Compensating for the higher consensus estimates, we think the quarter's results were still disappointing. Weather was favorable and there really wasn't any reason Allstate's results shouldn't be comparable to
," wrote analyst Paul Newsome of Sandler O'Neill + Partners.
--Written by Maria Woehr in New York.
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