August 4, 2010 / 10:54 PM / 10 years ago

WRAPUP 1-Allstate, Hartford hit by catastrophe losses

* Allstate adjusted EPS $0.81 vs estimate $0.69

* Hartford adjusted EPS $0.92 vs estimate $0.71

* Prudential adjusted EPS $1.51 vs estimate $1.32

NEW YORK, Aug 4 (Reuters) - Allstate Corp (ALL.N) and Hartford Financial Services Group Inc (HIG.N) suffered from significant catastrophe losses in the second quarter, contributing to a mixed quarter for the property casualty insurers.

Allstate, a home and auto insurer, said catastrophe losses fell from the second quarter of 2009, but were still high by historical standards. The company’s homeowner insurance business posted a net loss during the quarter.

“We need to make money there,” Tom Wilson, Allstate’s chairman and chief executive, told Reuters. The company is trying to boost its premiums and diversify its geographical exposure to improve profitability, he added.

Allstate’s catastrophe losses were $636 million, compared with $818 million in the same quarter last year.

Hartford, meanwhile, posted $229 million of catastrophe losses, up from $142 million in the same quarter last year, driven by storms in the Midwest.

Hartford posted a profit of $76 million, or 14 cents a share in the second quarter, compared with a loss of $15 million, or 6 cents a share, in the same quarter last year.

Hartford’s adjusted earnings per share were 92 cents, beating the average estimate of 71 cents.

Allstate’s net income fell 62.7 percent to $145 million. On a per share basis, earnings fell to 27 cents from 72 cents in the same quarter last year.

Excluding investment results, Allstate posted operating income of 81 cents a share, beating average analyst forecasts of 69 cents, according to Thomson Reuters I/B/E/S.

Separately, Prudential Financial (PRU.N) posted second quarter profits of $798 million, or $1.70 a share, compared with $538 million, or $1.25 a share, in the same quarter last year.

Adjusted operating income was $1.51 a share, beating the average estimate of $1.32.

Reporting by Dan Wilchins; Editing by Phil Berlowitz

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