Allstate Reports Higher 2nd Quarter Net Income

By Staff Writer

July 18, 2002 at 08:00 PM

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NU Online News Service, July 18, 3:43 p.m. – The Allstate Corp., Northbrook, Ill, is reporting $344 million in net income for the second quarter on $7.5 billion in revenue, up from $168 million in net income on $7.2 billion in revenue for the second quarter of 2001.

Operating income, which excludes $23 million in restructuring charges and $107 million in investment losses, increased to $476 million, from $233 million, Allstate says.

Allstate sells life insurance, banking services and other financial services along with property-casualty insurance.

The company's Allstate Financial unit is reporting $106 million in net income for the latest quarter on $1.3 billion in revenue, compared with $84 million in net income on $1.3 billion in revenue for the second quarter of 2001.

Net results include $1 million in restructuring charges and $37 million in investment losses.

Allstate Financial suffered from a drop in variable-annuity sales during the quarter, but it benefited from increases in premiums, deposits, fixed-annuity sales and investment and mortality profit margins, the company says.

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