Summary
The Allstate Corporation's 2020 10-K filing reveals a strong financial performance driven by robust underwriting income in its Property-Liability segment, largely due to favorable auto non-catastrophe losses and a significant increase in homeowners catastrophe reserve reestimates, partly offset by a "Shelter-in-Place Payback" expense impacting auto customers. The company demonstrated resilience amidst the COVID-19 pandemic, proactively implementing business continuity plans and supporting customers through various payment relief measures and free identity protection services. Strategically, Allstate made significant progress in expanding its market share in personal property-liability insurance, notably through the acquisition of National General Holdings Corp., which is expected to enhance its independent agent channel business. Concurrently, Allstate announced its agreement to sell its life insurance and annuity businesses to The Blackstone Group Inc. for $2.8 billion, a move anticipated to result in a substantial after-tax loss of approximately $3 billion in the first quarter of 2021. This divestiture aligns with Allstate's strategy to focus on its core Property-Liability business and expand protection offerings.
Financial Highlights
41 data points| Revenue | $41.91B |
| Operating Income | $5.43B |
| Interest Expense | $318.00M |
| Net Income | $5.58B |
| EPS (Basic) | $17.53 |
| EPS (Diluted) | $17.31 |
| Shares Outstanding (Basic) | 311.60M |
| Shares Outstanding (Diluted) | 315.50M |
Key Highlights
- 1Allstate Protection underwriting income surged by 56.8% to $4.57 billion in 2020, primarily driven by lower auto non-catastrophe losses and favorable homeowners catastrophe reserve reestimates.
- 2The company provided $948 million in "Shelter-in-Place Payback" to auto and commercial lines customers due to decreased accident frequency during the pandemic.
- 3Allstate completed the acquisition of National General Holdings Corp. on January 4, 2021, significantly expanding its independent agent channel and expected to increase market share by over one percentage point.
- 4A significant event was the January 2021 announcement of the pending sale of Allstate Life Insurance Company (ALIC) and certain affiliates for $2.8 billion, with an expected after-tax disposition loss of $3 billion in Q1 2021.
- 5Consolidated net income applicable to common shareholders increased 16.7% to $5.46 billion in 2020, while return on average common shareholders' equity was 21.0%.
- 6Total revenues increased slightly by 0.3% to $44.79 billion in 2020, with property and casualty insurance premiums earned increasing by 2.8%.
- 7Net investment income decreased 9.7% to $2.85 billion in 2020, primarily due to lower market-based income driven by reduced portfolio yields and lower performance-based results.