Summary
Allstate Corporation's 2013 10-K filing reveals a company focused on stabilizing and growing its core property-liability insurance business while navigating a challenging economic environment. The 'Allstate Protection' segment, which constitutes the vast majority of the company's revenue, showed improved underwriting income driven by reduced catastrophe losses in 2013 compared to the prior year, leading to a more favorable combined ratio. However, the 'Allstate Financial' segment experienced a significant decline in net income, largely due to a substantial loss on the disposition of its Lincoln Benefit Life Company (LBL). Despite the mixed segment performance, the company demonstrated resilience in its capital position, with shareholders' equity increasing, supported by effective capital management actions including debt refinancing and preferred stock issuance. Allstate's strategic priorities for 2014 include growing policies, maintaining combined ratios, managing investments for returns, modernizing operations, and building growth platforms.
Financial Highlights
38 data points| Revenue | $34.51B |
| Interest Expense | $367.00M |
| Net Income | $2.28B |
| EPS (Basic) | $4.87 |
| EPS (Diluted) | $4.81 |
| Shares Outstanding (Basic) | 464.40M |
| Shares Outstanding (Diluted) | 470.30M |
Key Highlights
- 1Allstate Protection segment saw improved underwriting income in 2013, with a combined ratio of 91.5%, down from 95.5% in 2012, primarily due to lower catastrophe losses.
- 2Consolidated net income available to common shareholders was $2.26 billion in 2013, a slight decrease from $2.31 billion in 2012, with diluted EPS at $4.81 compared to $4.68.
- 3Allstate Financial segment experienced a significant drop in net income to $95 million in 2013 from $541 million in 2012, primarily due to a $521 million after-tax loss on the pending sale of Lincoln Benefit Life Company (LBL).
- 4Property-Liability premiums earned increased by 3.3% to $27.62 billion in 2013, driven by growth in auto and homeowners insurance.
- 5Catastrophe losses decreased significantly to $1.25 billion in 2013 from $2.35 billion in 2012, positively impacting the loss ratio.
- 6Shareholders' equity increased to $21.48 billion as of December 31, 2013, reflecting strong capital generation and management actions.
- 7The company repurchased $1.84 billion of common stock in 2013 and announced a new $2.5 billion repurchase program in February 2014, indicating a commitment to returning capital to shareholders.