Allstate Profits Drop 40 Percent

Allstate Corp.’s second-quarter profits fell 40 percent due, in large part, to a battering of spring storms. The unusually heavy losses from catastrophes were not helped by higher claims and increased competition that has kept premiums comparatively low. Net income was $459 million, or 61 cents per share, down from $770 million, or 95 cents per share, a year earlier.

Catastrophe losses, which totaled $239 million, are nearly double what they were through the second quarter of 1999. Revenues reflected increased premiums, rising 9 percent to $7.18 billion from $6.59 billion, as well as increased business in personal property/casualty and life and savings.

Allstate is still in the throes of a restructuring in which it is eliminating 4,000 positions as it shifts away from agents and toward the Internet to save about $600 million a year.