Summary Box: Allstate's net income drops 63 pct
Summary Box: Allstate's net income drops 63 pct
THE BOTTOM LINE: Allstate's net income sank 63 percent in the second quarter to $145 million, or 27 cents per share. That compares with a profit of $389 million, or 72 cents per share, in the year-ago period.
BEHIND THE NUMBERS: The drop was a result of steep investment losses related primarily to derivatives, which Allstate uses to hedge against risks such as interest-rate fluctuations.
UNDERLYING BUSINESS: Excluding the impact of investment losses, the company's operating income rose to $441 million, from $297 million in the year-ago period.
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