Northbrook, Illinois-based Allstate said it was forced to write down the value of fixed-income securities by $347 million due to instability in the global capital markets.
Allstate said net income fell to $348 million, or 62 cents a share, from about $1.5 billion, or $2.41 a share, in the year-ago period. Operating earnings fell about 38 percent to $747 million, or $1.33 a share, buffeted by catastrophic claims.
Unusual tornado activity in the Southern U.S. earlier this year resulted in catastrophe losses for the quarter increasing to $568 million, an increase of $407 million over the same period a year ago.