Allstate reports strong net income for Q3, is well-positioned to take on Sandy losses: CEO

Allstate Corp. has reported a net income of $723 million for the third quarter of the year, compared to $175 million for the same period in 2011, and remains “well-capitalized” to take on losses from post-tropical storm Sandy in the United States, its CEO has said.

“Our strategy of serving four distinct customer segments is also working as the Esurance and Encompass brands increased policies in force,” Thomas J. Wilson, the company’s chairman, president and CEO noted in a statement. “We improved underlying margins in both auto and homeowners insurance and benefited from lower catastrophe losses while growing overall written premiums.”

“In particular, Allstate brand homeowners, Emerging Businesses, Encompass and Esurance continued their favorable premium growth trend, partially offset by a decline in standard auto insurance sold through Allstate agencies, reflecting the actions to improve homeowners’ returns.”

While Allstate remains one of the most exposed insurers to damages from Superstorm Sandy, which has hit the eastern U.S. hard, Wilson was confident in the company’s ability to weather the losses.

“It’s too early to estimate the impact of Hurricane Sandy on Allstate’s fourth quarter earnings,” he said. “However, this catastrophe is not expected to have a material impact on Allstate’s overall financial condition. Allstate is amply well-capitalized to meet its obligations to policyholders.”

The company reported catastrophe losses for Q3 of $206 million, compared to more than $1 billion last year.

Allstate’s property-liability combined ratio for Q3, ended Sept. 30. was 90.2%.