Allstate Doubles Profit, Boosts Forecast for Year
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Allstate Corp., the second-largest U.S. auto and home insurer, said third-quarter profit more than doubled, bolstered by a year of rate increases. The company raised its forecast for 2003 earnings.
Net income climbed to $691 million, or 97 cents a share, from $248 million, or 35 cents, a year earlier, the company said. Profit excluding investment gains was 91 cents a share, more than the 88 cents predicted in a Thomson First Call survey of analysts. Revenue rose 12% to $8.1 billion.
Allstate’s profit swelled as it increased rates faster than competitors and limited coverage for expensive items such as mold damage to homes.
Allstate raised its forecast for 2003 operating earnings to $3.65 to $3.80 a share from a previous range of $3.50 to $3.65.
Allstate shares rose 47 cents to close at $39.17 on the NYSE before the announcement.
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