Illinois-based p/c and life group Allstate Corp saw its 2011 net earnings fall 15% to $788m, as the group swung to an $874m p/c underwriting loss from year-earlier income of $495m owing to a 73% increase in catastrophe-related losses. The jump in cat losses to $3.82bn was partially offset by a swing to $503m in realized capital gains from losses of $827m. Allstate's combined ratio for the year rose to 103.4% from 98.1%, as claims costs rose 6.4% to $20.16bn and earned premiums were essentially unchanged at $25.94bn. The group's core p/c division posted net income of $408m for the year, a decline of 61%. Allstate Financial, the group's life business, posted net income of $586m, 10 times the year-earlier figure, thanks to the swing to realized capital gains. Premiums in the p/c segment remained flat for the year, despite the company's Q4 acquisition of online insurance units Esurance and Answer Financial. CEO Thomas Wilson explained that the group continued to experience "reductions in Allstate branded policy counts due to programmes to improve profitability in auto insurance in New York and Florida and homeowners insurance in catastrophe-prone markets".