NORTHFIELD TOWNSHIP (dpa-AFX) - The Allstate Corp. (ALL) reported second quarter net income available to common shareholders of $326 million or $0.79 per share compared to $614 million or $1.39 per share, last year. Operating income was $262 million or $0.63 per share, for the quarter.
Consolidated revenues were $8.98 billion compared to $8.86 billion, a year ago. The company said the revenues in the second quarter of 2015 reflects a 4.7% increase in insurance premium from the prior year quarter, which was partially offset by lower investment income and capital gains.
Thomas Wilson, CEO of Allstate said, 'Our second quarter operating income of $262 million was lower than last year, reflecting increased frequency and severity of auto accidents. While recent growth in Allstate brand auto policies in force did increase frequency, since new business typically has higher relative frequency, this was not the primary driver of a higher combined ratio. We have responded aggressively to improve profitability with rate increases, tighter underwriting standards and expense reductions. We continue to focus on achieving our five 2015 operating priorities and have not changed the priority to deliver an underlying combined ratio of 89 or below for the full year.'
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