New ETF Book by Larry Connors - Click here to read more
The Northbrook, Illinois-based company said second quarter net income plunged to $25 million or $0.05 per share from $1.403 billion or $2.30 per share in the same period last year.
Operating income dropped to $683 million or $1.24 per share from $1.072 billion or $1.76 per share in the previous year. On average, 19 analysts polled by First Call/Thomson Financial expected earnings of $1.29 per share for the quarter.
The company noted that operating income was affected by $698 million in pre-tax catastrophe losses as well as the absence of favorable reserve re-estimates. In the year-ago period catastrophe losses were $433 million.
Net income of the latest period reflects the impact of realized after-tax capital losses of $788 million and lower operating income.
Consolidated revenues for the second-largest home and auto insurer declined to $7.4 billion from $9.5 billion reported in the second quarter of 2007. The Street estimated second quarter revenues of $8.80 billion.
Revenue from property-liability insurance premiums slipped 1% to $6.750 billion, while Life and annuity premiums and contract charges advanced 3.7% to $471 million. Net investment income dropped 13.6% to $1.412 billion from the year ago period.
Property-Liability premiums written declined 2.0% in the second quarter of 2008 to $6.803 billion. Combined ratio dropped 6.8 points to 94.4 from 87.6. The Property-Liability underlying combined ratio for the quarter, which excludes the effects of catastrophes and prior year reserve re-estimates, was 84.1, lower than the full-year outlook of 87.0 to 89.0 provided in January.
Allstate said its standard auto premiums written in the second quarter of 2008 were comparable to the prior year quarter, while homeowners premiums written declined 0.8% during the period.
For the first half of the year, net income plunged to $373 million or $0.67 per share from $2.898 billion or $4.71 per share in the previous year. Revenues decreased 17.5% to $15.505 billion from $18.786 billion.
Total investments at June 30, 2008 were $113.603 billion, while it was $118.98 billion at December 31 2007. Cash for the same periods was $748 million and $422 million, respectively.
Looking ahead, the company now expects its underlying combined ratio will be within 86.0-88.0 for the full year of 2008, an improvement from the full-year outlook of 87.0-89.0 provided in January.
On July 18, analysts at Credit Suisse reinitiated coverage of Allstate shares with an "Outperform" rating. The target price was set to $55.
Among others in the industry, Progressive Corp. (PGR | Quote | Chart | News | PowerRating), a provider of personal and commercial automobile insurance, on July 10 announced a 24% drop in second quarter profit, compared to last year. Net premiums written slipped 1%, while net premiums earned decreased 3%.
ALL closed Wednesday's regular trade at $46.17, up $0.56 or 1.23% from the previous close, on 7.02 million shares. The stock dropped 35 cents in the extended trade. For the past year, the stock trended in the range of $42.51-$59.23.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
