Allstate Says Storm Losses Will Cut Earnings

Allstate Corp. said a series of severe spring storms had resulted in about $340 million in catastrophe losses in the past two months, which will cut second-quarter earnings by 30 cents a share. Analysts had forecast earnings of 66 cents. Allstate, the nation’s largest publicly held insurance company, said catastrophe losses of $720 million in the first five months of this year are close to surpassing the full-year totals of $780 million for 1998 and $820 million for 1999. Shares in Northbrook, Ill.-based Allstate fell $2.50 to close at $23 on the NYSE.