Allstate ( ALL) shares lost ground in late trading Tuesday after the insurance giant's fourth-quarter earnings missed Wall Street's target.

Allstate's net income totaled $1.21 billion, or $1.93 a share, up from $8.95 billion, or $1.59 a share, a year earlier.

Operating earnings, which exclude investment gains and losses, rose to $1.12 billion, or $1.78 a share, from $975 million, or $1.49 a share, in the year-earlier period. Analysts polled by Thomson Financial expected operating earnings of $1.84 a share.

Revenue inched up 1.8% to $9.1 billion from $8.95 billion, topping Wall Street's forecast of $8.54 billion.

Property-liability premiums written declined 0.8% from a year earlier, hurt by a new catastrophe reinsurance program. Financial premiums and deposits, excluding variable annuities, slid 37% due to reduced issuance of institutional products and lower fixed-annuity products.

The company, noting input from "a wide range of stakeholders," said it will stop giving operating earnings guidance in 2007.

Shares of Allstate were down $1.62, or 2.5%, to $62.38 in after-hours trading.