Allstate Corp. announced its third-quarter net income fell 55 percent after natural disasters cost the company $1.08 billion.
But improved investment results and profit in its auto insurance segment helped offset some of the increased storm losses, Allstate said, as reported by the Associated Press. Its revenue rose 4.2 percent to $8.24 billion from $7.91 billion a year ago.
The company also saw a significant improvement in its investments, with a gain of $264 million from capital gains compared with a loss of $144 million a year ago, the Associated Press reports.
Allstate's net income was $165 million, or 32 cents per share, compared with $367 million, or 68 cents per share, a year ago, according to the Associated Press.
In order to offset higher claims from violent storms, Allstate increased premium rates for home owners and discontinued insurance coverage for homes that it believes are too risky to insure, CEO Thomas Wilson said in an interview reported by the Associated Press.
Home insurance premiums are up about 5 percent compared with a year ago, according to the Associated Press. There are about 4 percent fewer policies in force. Auto premiums were increased about 1 percent on average from a year ago, Wilson told the Associated Press.
Overall, premiums written fell to $6.43 billion from $6.50 billion.
Shares fell 82 cents, or 3 percent, to close at $26.34 before the company reported results, the Associated Press reports. In after-market trading shares rose $1.12, or 4.25 percent.
