Hit on both fronts -- by hurricanes and the securities markets -- Allstate ( ALL) posted $923 million in third-quarter losses Thursday. With 35 catastrophes in the third quarter alone, the insurance company suffered $1.8 billion in catastrophe losses, primarily from Hurricanes Ike (responsible for $459 million) and Gustav (responsible for $944 million). In its earnings report and conference call this morning, Allstate was quick to put a spin on the losses, by saying that if not for its "catastrophe exposure management actions" the losses would have been twice as high. This is a fancy way of saying that the company has cancelled policies in coastal regions, bought more reinsurance and increased homeowners' policy deductibles. To pile on even more losses, net pre-tax realized losses on investments totaled a hefty $1.3 billion made up of $137 million in losses on sales, $666 million on impairment writedowns and $453 million on changes in intent writedowns, which means the company no longer plans to hold the securities until their value recovers, even if it hasn't sold them yet. Holdings in AIG ( AIG), Fannie Mae ( FNM), Freddie Mac ( FRE) and Lehman Brothers total $500 million at Sept. 30 compared to $1 billion at June 30. The company also holds fixed-income and equity securities in Bank of America ( BAC), Goldman Sachs ( GS), JPMorgan Chase ( JPM) (including Bear Stearns and Washington Mutual), Merrill Lynch ( MER), Morgan Stanley ( MS) and Wachovia ( WB) totaling a combined $1.1 billion at Sept. 30 compared to $1.6 billion at June 30.