Allstate Says Profit Cut by $108 Million

Allstate Corp. said fourth-quarter profit was cut by $108million, or 15 cents a share, reflecting costs related to a reorganization and reserves for a settlement it made with plaintiffs in a Georgia lawsuit.

The second-largest U.S. auto insurer recorded an expense of $70 million, or 10 cents a share, to pay for closing claim offices and redesigning its customer information centers. The Northbrook, Ill.-based insurer estimates it will save $140 million a year before taxes, once the changes are completed.

Allstate also said it reserved $38 million, or 5 cents a share, in the fourth quarter for a settlement with Georgia auto policyholders. The insurer said it is continuing to litigate similar suits in other states.

Allstate shares fell 37 cents to close at $32.65 on the NYSE.