What were Allstate's primary business segments in 2016?

Allstate's primary business segments in 2016 were Allstate Protection (principally private passenger auto and homeowners insurance), Discontinued Lines and Coverages (run-off business), Allstate Financial (life insurance, retirement, and accident and health products), and Corporate and Other (holding company activities).

How did catastrophe losses impact Allstate's financial performance in 2016?

Catastrophe losses in the Property-Liability segment increased significantly to $2.57 billion in 2016, compared to $1.72 billion in 2015. This increase, coupled with rising loss costs, negatively impacted the underwriting income and contributed to a higher combined ratio for the Allstate Protection segment.

What strategic acquisitions or significant corporate actions did Allstate undertake around this period?

Allstate announced an agreement to acquire SquareTrade Holding Company, Inc., a consumer product protection plan provider, for approximately $1.4 billion. This transaction closed in January 2017, expanding Allstate's product offerings. The company also continued its share repurchase program, returning capital to shareholders.

How did the low interest rate environment affect Allstate's financial segment?

The low interest rate environment adversely impacted Allstate Financial's profitability, particularly for spread-based products like fixed annuities. Lower investment yields on reinvested assets and the inability to sufficiently reduce crediting rates on certain products squeezed investment spreads, leading to lower net investment income and a decline in Allstate Financial's net income applicable to common shareholders.

ALLSTATE CORP 10-K FY2016 Annual Report — Revenue, Net Income, EPS

Summary

The Allstate Corporation's 2016 10-K filing reveals a company focused on its core property-liability and financial services segments, aiming for improved customer service, target economic returns, customer base growth, proactive investment management, and long-term growth platforms. The company, the largest publicly held personal lines insurer in the U.S., generated over $33 billion in premiums and contract charges. Key drivers of financial performance were the Allstate Protection segment, which accounted for 93% of consolidated insurance premiums, and the Allstate Financial segment. Despite a slight decrease in net income applicable to common shareholders compared to 2015, largely due to higher property-liability insurance claims and catastrophe losses, the company demonstrated resilience. Allstate Protection's underwriting income saw a decrease driven by increased catastrophe losses, while Allstate Financial's net income also declined, primarily due to net realized capital losses and lower investment income. The company continued its commitment to shareholder returns through dividends and share repurchases, and is strategically investing in technology and product innovation, including the acquisition of SquareTrade.

Financial Highlights

38 data points

Beta

Revenue

$37.40B

Net Income

$1.88B

0.1% Net Margin

EPS (Diluted)

$4.67

Total Assets

$108.61B

Cash & Equivalents

$436.00M

Free Cash Flow

$3.68B

Financial Statements

Beta

Revenue	$37.40B
Interest Expense	$295.00M
Net Income	$1.88B
EPS (Basic)	$4.72
EPS (Diluted)	$4.67
Shares Outstanding (Basic)	372.80M
Shares Outstanding (Diluted)	377.30M

Key Highlights

1Total revenues reached $36.53 billion in 2016, an increase from $35.65 billion in 2015.
2Allstate Protection segment premiums earned were $31.31 billion, a 3.3% increase year-over-year, with auto premiums driving the growth.
3Catastrophe losses in the Property-Liability segment increased significantly to $2.57 billion in 2016 from $1.72 billion in 2015.
4The Property-Liability combined ratio deteriorated slightly to 96.1% in 2016 from 94.9% in 2015, primarily due to higher catastrophe losses.
5Allstate Financial segment net income applicable to common shareholders decreased to $391 million in 2016 from $663 million in 2015.
6The company announced an agreement to acquire SquareTrade Holding Company, Inc., a consumer product protection plan provider, for approximately $1.4 billion, which closed in January 2017.
7Shareholders' equity increased to $20.57 billion as of December 31, 2016, from $20.03 billion as of December 31, 2015.

ALLSTATE CORP Annual Report, Year Ended Dec 31, 2016

Summary

Financial Highlights

Key Highlights

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