Hurricanes to Take Toll on Allstate’s Profit

Allstate Corp. warned that its third-quarter profit would fall well short of expectations because of more than $1 billion in hurricane-related payouts.

The Northbrook, Ill.-based insurer said it expected to post net income of 9 cents a share and operating income of 8 cents a share in the quarter.

Analysts had expected the company to earn 24 cents a share, according to Reuters Estimates.

The company expects to report third-quarter earnings Oct. 20.

The revision comes after four hurricanes battered the Southeast in the last two months.

Allstate said it would post $1.06 billion, or $1.53 a share, in after-tax losses related to the storms -- what are termed catastrophic losses. Those losses are net of recoveries from the Florida Hurricane Catastrophe Fund.