NU Online News Service, July 16, 2003, 5:19 p.m. EDT – The Allstate Corp., Northbrook, Ill., says problems with variable annuity sales, mortality rates and investment earnings hurt profits at its Allstate Financial unit during the second quarter.
The company as a whole is reporting $588 million in net income for the quarter on $7.9 billion in revenue, up from $344 million in net income on $7.5 billion in revenue for the second quarter of 2002.
But Allstate Financial is reporting $98 million in net income for the latest quarter on $3.3 billion in revenue, down from $106 million in net income on $3.3 billion in revenue.
Allstate Financial experienced "continued strong fixed annuity sales more than offset by lower sales of institutional products and variable annuities," Allstate says in a discussion of the results.