AUTO HAIL REPAIR NEWS

NEW YORK (Associated Press) - Allstate Corp. is expected to report results for the fourth quarter on Tuesday. Following is a summary of key developments and analyst commentary related to the period.

OVERVIEW: After Allstate's profit more than doubled in 2006, a series of wildfires damaged acres of insured property in California, where Allstate is a major property insurer, and problems in the financial markets may have hurt its investment portfolio.

Adding to its challenges, competition for customers continues to drag prices for insurance policies.

Allstate's profit shrank 16 percent in the third quarter as the Northbrook, Ill.-based insurer paid more claims for insured damage. Allstate spent 91 cents of each premium dollar to administer claims in the third quarter, compared with 84.1 cents per dollar in the third quarter of 2006.

Wachovia Capital Markets analyst Susan Spivak Bernstein expects expenses to continue swelling, with Allstate spending 93.2 cents of each premium dollar in the fourth quarter. She expects premiums to decline 1.2 percent.

In addition to pressure from California claims, Bernstein said she expects some costs from wind and hail storms in the Northwest and ice storms in the Midwest in December.

Also, many insurers are reporting losses on their investments amid the turmoil in financial markets. Like most insurers, Allstate invests the premiums it collects.

The company's $121.13 billion portfolio lost about $1.14 billion of its value in the third quarter, partly because of losses on mortgage debt.

EXPECTATIONS: Analysts polled by Thomson Financial forecast fourth-quarter profit of $1.32 per share, marking a 26 percent decline. Revenue is expected to slip 3 percent to $8.86 billion.

ANALYST TAKE: Bernstein expects Allstate to report $360 million to $400 million in losses on catastrophe claims for the fourth quarter, mainly because of the California wildfires.

She also said Allstate may have to write off some of its investments. About 3.7 percent of Allstate's portfolio is tied to "subprime" debt, or loans to borrowers with blemished credit histories.

WHAT's AHEAD: The commissioner of insurance in Florida suspended Allstate from writing car insurance policies in the state because the state alleges the company is not cooperating with an investigation into homeowner's insurance.

A court delayed the suspension, but Allstate "will face many accusations of bad faith," said Stifel Nicolaus analyst Meyer Shields, whether or not the accusations have any basis.