These Insurance Companies are Lighting Up Trading Screens After Earnings

Allstate Corporation (NYSE:ALL) posted lower net income in the third quarter compared with a year-earlier period. Net income for the property and casualty insurance company fell to $165 million (32 cents per share) vs. $367 million (68 cents per share) a year earlier. This is a decline of 55% from the year earlier quarter. Revenue rose 4.2% to $8.24 billion from the year earlier quarter. ALL beat the mean analyst estimate of 11 cents per share. It beat the average revenue estimate of $6.74 billion.

“Maintaining auto insurance profitability and proactively managing our investment portfolio enabled us to overcome an increase of $691 million in catastrophe losses from the third quarter of 2010 and still earn a profit,” said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation. “Progress was made in improving auto insurance profitability in New York and Florida and raising underlying returns in homeowners insurance. A small decline in auto insurance policies during the last twelve months is related to the impact of improving profitability in New York and Florida and a 4% decline in homeowners policies.”

Competitors to Watch: Horace Mann Educators Corp. (NYSE:HMN), The Progressive Corp. (NYSE:PGR), Safety Insurance Group, Inc. (NASDAQ:SAFT), 21st Century Holding Co. (NASDAQ:TCHC), The Travelers Companies, Inc. (NYSE:TRV), Hilltop Holdings Inc. (NYSE:HTH), Hallmark Financial Services, Inc. (NASDAQ:HALL), Tower Group, Inc. (NASDAQ:TWGP), Erie Indemnity Company (NASDAQ:ERIE), and Gainsco, Inc. (AMEX:GAN).

Tenet Healthcare Corporation (NYSE:THC) reported a lower net income in the third quarter compared with a year earlier. Net income for the healthcare facilities company fell to $6 million (2 cents per share) vs. $938 million ($1.68 per share) a year earlier. This is a decline of 99.4% from the year earlier quarter. Revenue rose 3.5% to $2.34 billion from the year earlier quarter. THC reported an adjusted net income of 4 cents a share. By that measure, the company beat the mean estimate of one cent per share. Analysts were expecting revenue of $2.33 billion.

“Volume growth was very strong in our third quarter,” said Trevor Fetter, president and chief executive officer. “Adjusted admissions growth of 2.3 percent and surgery growth of 3.2 percent drove a 3.5 percent increase in net operating revenues. This top line growth was further leveraged by excellent cost control and attractive pricing increases in our new contracts with commercial managed care payers. Given this progress across our key performance metrics, we are pleased to reconfirm our 2011 EBITDA Outlook in a range of $1.175 billion to $1.275 billion.”

Competitors to Watch: Community Health Systems (NYSE:CYH), Health Management Associates, Inc. (NYSE:HMA), Universal Health Services, Inc. (NYSE:UHS), MedCath Corporation (NASDAQ:MDTH), SunLink Health Systems, Inc. (AMEX:SSY), HCA Holdings Inc (NYSE:HCA), LifePoint Hospitals, Inc. (NASDAQ:LPNT), UnitedHealth Group Inc. (NYSE:UNH), HEALTHSOUTH Corp. (NYSE:HLS), and Select Medical Hldgs. Corp. (NYSE:SEM).

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