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Allstate Hit by Hurricanes and Economy

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Northbrook-based Allstate Insurance says it lost more than $900 million in the third quarter.

Allstate was hit hard this summer by hurricanes Ike and Gustav. The global financial crisis also slammed the insurer. Allstate reported the value of its portfolio dropped by about $8.6 billion.

In a release, CEO Thomas Wilson said it could have been worse. The company took steps to reduce it’s exposure to weather catastrophes, and had hedges in markets to limit the effects of the economic downturn.

Wilson said the company expects quote “volatile financial markets and tough economic conditions to persist for some time.”

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