Company Will Conduct Conference Call After The Release Of Third Quarter
Earnings
NORTHBROOK, Ill., Oct. 10 /PRNewswire/ -- The Allstate Corporation
(NYSE: ALL) today reported that it expects third quarter operating income per
diluted share to be approximately $0.53 to $0.57 compared to $0.71 for the
same period in 2000 and $0.31 for the second quarter of 2001.
A principal factor contributing to the expected results is higher
homeowners loss trends. Those trends were the principal contributor to
reserve increases totaling $80 million after-tax ($0.11 per diluted share).
Among the other factors contributing to the expected results are the losses
sustained by both the Property-Liability and Allstate Financial businesses
from the September 11 attack, estimated to be $32 million after-tax ($.04 per
diluted share), consistent with our September 14 announcement that the
September 11 tragedy is not a major financial event for Allstate. Partially
offsetting these factors is a $49 million tax benefit ($0.07 per diluted
share) resulting from the deduction of inception-to-date operating losses of
the German and Italian subsidiaries that were sold in the third quarter.
"Our homeowners line continues to be problematic," said Chairman,
President and CEO Edward M. Liddy. "This problem is somewhat similar to the
trends we experienced in our non-standard auto business in 1999, and as we
made adjustments to improve the profitability of that line, we have
initiatives in place to address this current trend in the homeowners line.
The initiatives target specific markets and include changes to our product
design, our underwriting approach and the appropriate rate changes. We
understand the problem very clearly and are moving as quickly as possible to
address the adverse trends. However, it will be some time before we see the
full effects of these initiatives, in part, because the homeowners policy is
an annual policy."
The Investor Relations Department of Allstate will conduct a conference
call following the release of the company's third quarter results on Thursday,
October 18, 2001 at 10 a.m. Eastern Daylight Time (EDT). Those interested in
listening to the call live can access an Internet webcast on the company's
website. Go to allstate.com/webcast, and then click on the "Live Webcast"
link. For those not able to listen to the call live, the entire conference
call will be available for replay via webcast on the company's website
beginning shortly after 11 a.m. EDT on Thursday, October 18th, through 11 a.m.
EDT Thursday, October 25th.
This press release contains forward-looking statements about Allstate's
third quarter earnings. These statements are subject to the Private
Securities Litigation Reform Act of 1995 and are based on management's
estimates, assumptions and projections. Because Allstate is still evaluating
homeowner loss trends and receiving and evaluating claims related to the
September 11 attack, actual results may differ materially from those
projected.
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, through Allstate agents, workplace marketing, independent agents,
banks and securities firms.
SOURCE Allstate Corporation
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Related links:
http://www.allstate.com
Company News On-Call:
http://www.prnewswire.com/comp/109395.html
CONTACT:
Media Relations, Michael Trevino, or Mary
Alice Horstman, +1-847-402-5600, or Investor Relations, Robert
Block, or Phil Dorn, +1-847-402-2800
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