NORTHBROOK, Ill., July 10 /PRNewswire/ -- The Allstate Corporation
announced today that its pre-tax catastrophe losses for the second quarter of
2001 are estimated to be $536 million. Several severe spring storms,
including flood damage caused by Tropical Storm Allison, caused approximately
$446 million in losses. In addition, $90 million of additional reserves will
be recorded to provide for resolution of claims remaining from the 1994
earthquake in Northridge, California.
The estimated catastrophe losses would add 9.7 points to the combined
ratio for the second quarter of 2001 and impact after-tax diluted earnings per
share by approximately $.48. By comparison, second quarter 2000 catastrophe
losses were $367 million pre-tax, which added 6.7 points to the combined ratio
and impacted after-tax diluted earnings per share by $.32.
"This has been an active spring storm season, combined with significant
damage due to Tropical Storm Allison," said Chairman, President and CEO Edward
M. Liddy. "We are in the business of taking care of our customers when
disasters strike, and this is an example of our commitment to be there when
our customers need us."
Through the first half of 2001, estimated pre-tax catastrophe losses are
$618 million. The estimated catastrophe losses would add 5.6 points to the
combined ratio for the first half of 2001 and impact after-tax diluted
earnings per share by $.55. By comparison, the pre-tax catastrophe losses for
the first half of 2000 were $749 million, which added 6.8 points to the
combined ratio, and impacted after-tax diluted earnings per share by $.64.
This press release contains forward-looking statements about Allstate's
catastrophe losses and their potential impact on its financial results. Such
statements are subject to the Private Securities Litigation Reform Act of 1995
and are based on management's estimates, assumptions and projections.
Allstate's actual results may differ materially from those projected in the
forward-looking statements. Allstate is still receiving and evaluating claims
related to the catastrophes occurring in the second quarter of 2001.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held
personal lines insurer. Widely known through the "You're In Good Hands With
Allstate(R)" slogan, Allstate provides insurance products to more than
14 million households and has approximately 13,000 exclusive agents in the
U.S. and Canada. Customers can access Allstate products and services through
Allstate agents, or in select states at allstate.com and 1-800-Allstate.
Encompass(SM) and Deerbrook(SM) Insurance brand property and casualty products
are sold exclusively through independent agents. Allstate Financial Group
includes the businesses that provide life insurance, retirement and investment
products.
SOURCE Allstate Corporation
 back to top
Related links:
http://www.allstate.com
Company News On-Call:
http://www.prnewswire.com/comp/109885.html
CONTACT:
Media Relations, Michael Trevino, or Mary
Alice Horstman, 847-402-5600, Investor Relations, Robert Block,
or Phil Dorn, 847-402-2800, all of Allstate
|
