Allstate Corp. said its third-quarter net income nearly tripled, reflecting capital gains realized from investments and special charges a year earlier.
The Northbrook-based insurance firm said earnings climbed 182 percent, to $824 million, or $1.89 per share, from $292 million, or 65 cents per share, in last year’s third quarter.
Chairman Jerry D. Choate said profits were helped by “good weather, fewer accidents and the company’s continuing focus on its core strengths in personal lines, auto, homeowners and life insurance.”
Consolidated third-quarter revenues rose 6 percent, to $6.38 billion from $6.01 billion. Allstate said the increase stemmed from higher income from property and casualty premiums, annuity premiums and capital gains.
The company realized a profit of $226 million from capital gains after taxes in the 1997 quarter, up from $79 million a year earlier. Last year’s operating income was reduced by $248 million, or 56 cents per share, stemming from an increase in net loss reserves for discontinued lines and coverages, a $150 million assessment for its participation in the California Earthquake Authority and a revision in the firm’s policy for capitalizing deferred acquisition costs.
For the nine months, Allstate reported a 51 percent jump in net income, to $2.23 billion, or $5.09 per share, from $1.48 billion, or $3.30 per share, a year earlier. Consolidated revenues rose 2 percent, to $18.64 billion from $18.24 billion.
Year-to-date capital gains totaled $418 million after taxes, up from $405 million the year before.
