Allstate has revealed a 2.8% rise in consolidated revenues for the first quarter of 2007 from $9.02bn to $9.3bn. Net income per share rose 9.1% to $2.39.
The company also revealed that the property liability combined ration had rise 2.7% from 81.9% to 84.6%.
“Allstate is off to a strong start in 2007,” said Thomas Wilson, president and chief executive officer, Allstate. “Our property-casualty, financial and investment operations delivered solid results, generating net income of $1.49bn for the first quarter of 2007. Our return on equity for shareholders remained strong at 23.5% and book value increased 14.3% compared to first quarter 2006.
“Profitability remained strong in the first quarter of 2007,” added Wilson. “Operating income in the quarter was $1.2bn compared to $1.3bn for last year's first quarter.
“Winter weather in the central and northeast sections of the country partially contributed to the increase in claim frequency in standard auto property damage and in our homeowners line during the quarter. Property damage severity results in the quarter were moderate and better than we expected at the beginning of the year,” continued Wilson. Catastrophe losses for the quarter were $161m, compared to $107m in the first quarter of 2006.”