(RTTNews) - Personal property and casualty insurance provider Allstate Corp. (ALL), Wednesday reported a swing to profit for the third quarter on lower catastrophe and investment losses. Earnings, however, on a per share basis fell short of market estimate. Revenues grew 3.6% reflecting lower realized capital losses compared to the prior year quarter.

The Northbrook, Illinois-based Allstate posted net income of $221 million or $0.41 per share for the third quarter, compared to a net loss of $923 million or $1.70 per share in the prior year period.

In the preceding second quarter, Allstate reported net income of $389 million or $0.72 per share, up from $25 million or $0.05 per share in the year-ago quarter.

The net income improvement for the quarter under review, Allstate said, was due to higher operating income and lower realized capital losses in the third quarter of 2009, compared to the prior year quarter.

Allstate's operating income for the quarter was $538 million or $0.99 per share, compared to an operating loss of $190 million or $0.35 per share in the third quarter of 2008. On average, nineteen analysts polled by Thomson Reuters expected the company to earn $1.01 per share for the quarter.

In the preceding quarter, operating income was $297 million or $0.55 per share down from $683 or $1.24 per share in the same quarter last year.

For the latest quarter, Allstate's revenues grew 3.6% to $7.582 billion from $7.320 billion a year ago. Analysts expected revenues of $8.50 billion. The revenue growth reflected lower realized capital losses compared to the prior year quarter, partially offset by a decrease in net investment income and property-liability premiums.

In the preceding second quarter, consolidated revenues increased 14.5% to $8.49 billion from $7.42 billion in the prior-year quarter, reflecting realized capital gains compared to realized capital losses in the prior year quarter.

Commenting on the operations, Thomas Wilson, chairman, president and chief executive officer, said, "Allstate delivered strong operating income of $538 million and increased book value per share by 16% during the third quarter, thanks to our operating discipline and proactive approach to investing."

Allstate brand standard auto premiums written for the third quarter of 2009 were comparable to the prior year third quarter, with new issued applications increasing 12.0% and the renewal ratio increasing 0.2 points to 89.1. Policies in force declined 1.3% versus the prior year quarter as improved sales and retention were offset by fewer policies available to renew.

Allstate brand homeowners premiums written for the third quarter of 2009 declined 0.2% compared to the same period a year ago, resulting from a 4.1% decline in policies in force.

Segment wise, Property-Liability recorded insurance premiums earned of $6.535 billion for the quarter, down from $6.785 billion in the year-ago similar period. Net investment income was $326 million, down from $386 million last year. Catastrophe losses recorded was $407 million, compared to $1.816 billion a year ago. Net income for the segment was $314 million, compared to a net loss of $661 million a year ago.

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