INSURANCE EARNINGS ALLSTATE'S THIRD-QUARTER PROFIT UP SHARPLY OVER 1994 PERIOD

INSURANCE EARNINGS ALLSTATE'S THIRD-QUARTER PROFIT UP SHARPLY OVER 1994 PERIOD

The Allstate Corp. Thursday reported 1995 third-quarter profit up to $445.7 million, or $1 a share, from $193.9 million, or 43 cents, a share, in the same quarter a year earlier.

Profit for the first nine months was even more dramatically increased, to $1.506 billion from $321 million for the first three quarters of 1994.The massive increase in consolidated net income and earnings per share for the third quarter ended Sept. 30, are partly explained by the fact that last year's results were significantly affected by earthquake losses.

But revenue growth had continued, up 7.4 percent for both the quarter and nine months; personal lines written premium increased 8.1 percent for the quarter.

Revenue for the third quarter of 1995 was $5.7 billion, up from $5.3 billion in the same quarter a year earlier. For the nine-month result, revenue in 1995 was $16.9 billion, up from $15.8 billion in the first three quarters of 1994.

The company's combined ratio including catastrophes was 99.5 for the third quarter of 1995, compared to 108.6 a year earlier. Without catastrophes, it was 95.7, an improvement from 99.1 in the third quarter of 1994. Combined ratio measures the amount of premium spent on claims and expenses.

"Allstate continues to grow in 1995 as the underlying strength of our major businesses resulted in solid operating gains," said Jerry D. Choate, Allstate's chairman and chief executive officer.

Pretax catastrophe losses for the period were $170.7 million, which included a $90 million increase in estimated losses for the 1994 Northridge, Calif., earthquake and a reduction of $33 million in reserves related to the second-quarter Texas hail storms.

The Allstate Corp., the parent of Allstate Insurance Co., is the nation's largest publicly held personal lines insurance company, insuring one of every eight homes and automobiles in the country.

CAPITAL RE'S EARNINGS

SET RECORD IN QUARTER

Capital Re Corp. Thursday reported a record profit for its third quarter of 1995.

Net income reached $11.4 million, or 77 cents a share, for the third quarter ended Sept. 30 compared with $9.6 million, or 65 cents a share, for the third quarter of 1994, an increase of 18.8 percent.

Net income for the nine months increased 10.5 percent to $33.7 million, or

$2.28 a share, from $30.5 million, or $2.06 a share, for the comparable period in 1994.

"Capital Re's profile as a specialty reinsurance group is gaining substance as our financial performance reflects continued growth and profitability," said Michael E. Satz, chairman and chief executive officer.

Third-quarter 1995 total revenue, made up primarily of net premiums earned and net investment income, grew 8.3 percent to $24.9 million. Total revenue increased to $78.6 million for the first nine months of 1995 from $77.5 million for the same period in 1994.

The loss ratio for the third quarter and first nine months of 1995 increased minimally to 1.9 percent and 3.5 percent, respectively, from 1.3 percent and 1.2 percent in the prior year. In the financial guaranty side of business, there is very little payment to constitute losses, explaining the low ratio.

Capital Re Corp., headquartered in New York City, is an insurance holding company with three specialized professional reinsurance companies as its principal operating subsidiaries: Capital Reinsurance Co., Capital Mortgage Reinsurance Co. and Capital Credit Reinsurance Co.