Allstate reports US$1 billion loss in 2008 Q4

The Allstate Corporation (NYSE: ALL) reported a US$1.129 billion loss for 2008 Q4, marking a drastic drop from 2007 Q4’s profit of US$760 million.
For 2008, Allstate reported a 136% drop in profits over 2007, from US$4.636 billion to a loss of US$1.679 billion.
The company’s return on equity for 2008 was negative 9.7%, marking a decrease from 2007’s 21.2%.
The combined ratios for 2008 Q4 and year, respectively, were 96.4% and 99.4% (compared to 95.9% and 89.8% in the same respective periods of 2007).
The insurer reported US$260 million in catastrophe losses in 2008 Q4, bringing the total catastrophe loss for the year to US$3.342 billion. In 2007 Q4 catastrophe losses were US$472 million, and US$1.409 billion for the entire year.
“Allstate remains financially strong and delivered solid operating performance in 2008, despite costly natural catastrophes and unprecedented financial market deterioration,” said Thomas J. Wilson, chairman, president and CEO of Allstate. “2008 was our second-highest year for catastrophe losses in the past decade, which added to investment losses and led to a net loss for the year.”