Allstate Corp. (ALL), the largest publicly traded U.S. property-casualty insurer, said second-quarter profit advanced 41 percent and beat estimates as revenue climbed.
Net income rose to $614 million, or $1.39 a share, from $434 million, or 92 cents, a year earlier, the Northbrook, Illinois-based company said today in a statement. Operating income, which excludes some investment results, was $1.01 a share, beating the 65-cent average estimate of 22 analysts surveyed by Bloomberg.
The insurer has focused on adding new business after price increases tied to catastrophe costs pushed some customers away, according to Matt Carletti, an analyst with JMP Securities LLC.
“They’re making a renewed effort on growth,” Carletti said in a phone interview before the results were announced.
Allstate slipped 0.3 percent to $56.89 at 4 p.m. in New York. It has risen 4.3 percent this year compared with the 4.6 percent gain by the 84-company Standard & Poor’s 500 Financials Index.
The insurer led by Chief Executive Officer Tom Wilson made 2.6 cents for every premium dollar in its property and liability coverage unit, compared with a profit of 3.9 cents a year earlier. Policies in force at its namesake brand increased 1.5 percent, led by a 450,000-policy jump in the auto unit.
Book value, a measure of assets minus liabilities, rose to $47.97 a share from $46.70 as of March 31. Investment income narrowed to $898 million from $984 million in the second quarter of 2013.
To contact the reporter on this story: Kelly Gilblom in New York at email@example.com
To contact the editors responsible for this story: Dan Kraut at firstname.lastname@example.org Dan Reichl, Peter Eichenbaum