Summary
Allstate Corporation's 2014 10-K filing reveals a strong financial performance, driven by a robust Allstate Protection segment which constitutes 93% of the company's consolidated insurance premiums. The company, the largest publicly held personal lines insurer in the U.S., reported consolidated net income available to common shareholders of $2.75 billion, a notable increase from $2.26 billion in 2013. This improvement was largely due to a reduction in disposition charges related to the sale of Lincoln Benefit Life Company and lower debt extinguishment charges, partially offset by a decrease in underwriting income from the Property-Liability segment due to higher catastrophe losses. Allstate strategically operates across distinct consumer segments with its Allstate, Esurance, and Encompass brands, each catering to different customer preferences in terms of advice, service, and brand loyalty. The company is focused on growing policies in force, maintaining a healthy combined ratio, proactively managing investments, modernizing its operating model, and building long-term growth platforms. Key financial highlights include a 4.7% increase in property-liability premiums earned to $28.93 billion, a 6.5% increase in book value per diluted common share to $48.24, and a return on average common shareholders' equity of 13.3% for the year.
Financial Highlights
38 data points| Revenue | $35.24B |
| Interest Expense | $322.00M |
| Net Income | $2.85B |
| EPS (Basic) | $6.37 |
| EPS (Diluted) | $6.27 |
| Shares Outstanding (Basic) | 431.40M |
| Shares Outstanding (Diluted) | 438.20M |
Key Highlights
- 1Consolidated net income available to common shareholders was $2.75 billion in 2014, up from $2.26 billion in 2013.
- 2The Property-Liability combined ratio was 93.9 in 2014, compared to 92.0 in 2013, with catastrophe losses increasing to $1.99 billion from $1.25 billion.
- 3Allstate Protection premiums earned increased by 4.7% to $28.93 billion, driven by growth in auto and homeowners insurance.
- 4The Allstate Financial segment saw a significant increase in net income to $631 million from $95 million, largely due to the sale of Lincoln Benefit Life Company.
- 5The company repurchased $2.31 billion of common shares in 2014 and announced a new $3 billion repurchase program.
- 6Shareholders' equity increased by 3.8% to $22.30 billion as of December 31, 2014.
- 7The company maintains strong financial strength ratings from major agencies (A+ from A.M. Best for its insurance subsidiaries) with a stable outlook.