Summary
The Allstate Corporation's 2021 10-K filing reveals a year marked by significant strategic initiatives, including the acquisition of National General Holdings Corp. and the divestiture of its life and annuity businesses. These actions have reshaped the company's portfolio, with a strong focus on growing its core property-liability business and expanding protection offerings. Allstate Protection remains the dominant segment, contributing the vast majority of revenue, while experiencing increased catastrophe and non-catastrophe losses, particularly in auto insurance, which Allstate is addressing with rate increases and cost management. Financially, total revenues saw a substantial increase, driven by premium growth and strong net investment income. However, net income applicable to common shareholders declined significantly due to the loss on discontinued operations from the life and annuity divestitures. The company also continues its share repurchase program, demonstrating a commitment to returning capital to shareholders. Allstate's strategic repositioning aims to enhance market share in personal property-liability and leverage its brands and capabilities for continued growth in protection services.
Financial Highlights
41 data points| Revenue | $50.60B |
| Operating Income | $5.21B |
| Interest Expense | $330.00M |
| Net Income | $1.61B |
| EPS (Basic) | $5.09 |
| EPS (Diluted) | $5.01 |
| Shares Outstanding (Basic) | 294.80M |
| Shares Outstanding (Diluted) | 299.10M |
Key Highlights
- 1Acquisition of National General significantly expanded Allstate's independent agent channel presence and market share in personal property-liability insurance.
- 2Divestiture of life and annuity businesses (ALIC, ALNY) resulted in a significant loss on disposition but streamlined the company's focus on core insurance operations.
- 3Total revenues increased by 20.7% to $50.59 billion, driven by property and casualty insurance premiums and higher net investment income.
- 4Net income applicable to common shareholders decreased by 72.8% to $1.49 billion, primarily due to a substantial loss from discontinued operations.
- 5The Allstate Protection segment's underwriting income decreased by 60.9% due to higher auto and homeowners losses (both catastrophe and non-catastrophe) and increased underwriting expenses.
- 6Net investment income more than doubled to $3.29 billion, largely driven by strong performance-based results from limited partnerships.
- 7The company repurchased approximately $3.26 billion of its common stock in 2021 and announced a new $5 billion repurchase program.