NEW YORK (Reuters) — Allstate Corp. said yesterday that net income rose 5 percent in the first quarter, helped by a boost in auto policies, and announced a new $1 billion share buyback.Allstate, the largest publicly traded car and home insurer in the United States, said net income rose to $1.49 billion, or $2.39 a share, from $1.42 billion, or $2.19 a share in the year earlier quarter.

“Allstate is keeping up with the other auto insurers and the Internet companies in the battle for customers,” said Jim Ryan, an analyst with Morningstar Inc.

The Northbrook, Illinois insurer said its board had authorized issuing up to $1 billion of hybrid securities with the proceeds going to repurchase $1 billion of its common stock by the end of March 2008. This is in addition to its current $3 billion authorisation.

Hybrid securities are part-debt and part-stock and are attractive to investors because they offer yields that are higher than yields on US Treasuries.

Allstate, which insures 17 million customers, repurchased $700 million of its common shares during the first quarter.

Allstate said operating earnings fell 4 percent to $1.2 billion, or $1.93 a share, largely because of winter car accidents.

Analysts on average had expected the insurer to earn $1.86 a share on an operating basis, according to Reuters estimates.

Analysts use operating earnings to measure performance because they exclude investment gains or losses.

“Allstate, like all the property insurers, is coming off the peak of the cycle last year,” said Morningstar’s Ryan. In 2006, property casualty insurers earned a total of $63.7 billion and had the best results in 19 years.