The Wall Street Journal-20080130-Earnings Digest -- Financial Services- Allstate Corp-

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Earnings Digest -- Financial Services: Allstate Corp.

Full Text (101  words)

Allstate Corp.'s fourth-quarter profit dropped 37%, largely due to catastrophe losses as a result of the California wildfires. The Northbrook, Ill., home and auto insurer's catastrophe losses in the quarter rose to $472 million from $279 million a year earlier. The insurer said the bulk of its elevated costs resulted from $318 million in catastrophe losses related to the Southern California wildfires in October. Property-liability premiums written were down 0.7% to $6.56 billion as underwriting income sank 72%. Growth in the standard auto business failed to offset a decline in homeowners coverage because of the 6.2% higher cost of catastrophe reinsurance.