Allstate makes leadership change

In an unexpected move, Allstate Corp. announced Tuesday that James E. Hohmann, president and chief executive officer of Allstate Financial, will leave the company effective Jan. 5.

The largest publicly traded U.S. home and auto insurer would not explain the action. A permanent successor has not be named.

The Northbrook company did say that George Ruebenson, president of Allstate Protection, will take responsibility for the key operational areas while the company searches for a new leader. Ruebenson has been with the company for 38 years.

Hohmann served as president and chief operating officer of Conseco Inc. before joining Allstate two years ago.

"Despite the hard work of our team, we must be more focused on creating a sustainable business model that reflects a new economic environment and reality for our customers," Allstate Chairman and CEO Thomas J. Wilson said in a statement.

Allstate had reported an unexpected loss in the third quarter that the company blamed on big hurricane-related costs and the ongoing global financial crisis.

For the July to September period, the company lost $923 million, or $1.71 per share, after a profit of $978 million, or $1.70 per share, a year earlier. Revenue fell to $7.3 billion from $9 billion.

The declining value of investments amid "unprecedented declines in credit markets," also helped erode third-quarter profit, Allstate has said.

Allstate shares fell 69 cents Tuesday to close at $26.43. Shares have traded between $17.72 and $55.50 in the past 12 months.