Feb 7 (Reuters) - Insurer Allstate Corp posted fourth-quarter profit above Wall Street estimates, fueled by a potent blend of rising premiums and a significant drop in catastrophe losses.

Insurers usually see stable product demand irrespective of economic conditions, mainly due to the widespread adoption of employer-sponsored and government-mandated insurance policies.

The company's consolidated premiums written stood at $13.84 billion for the quarter, up 9.3% from the year-ago quarter.

The insurer's catastrophe losses plummeted sharply by 91.3% in the quarter, reaching $68 million.

"Allstate had strong profitability in the quarter due to improved auto profitability and mild weather," CEO Tom Wilson said in a statement.

The insurer's adjusted profit for the three months ended Dec.31 was $5.82 per share, compared to analysts' estimate of $3.99 per share, according to LSEG data.

Allstate's investment income rose 8.4% to $604 million in the quarter, reflecting higher yields in the company's fixed-income portfolio.

The Northbrook, Illinois-based company posted an underlying combined ratio of 86.9%, compared to 99.2% a year earlier. A ratio below 100% means the insurer earned more in premiums than it paid out in claims. (Reporting by Sri Hari N S in Bengaluru; Editing by Tasim Zahid)