Summary
The Allstate Corporation reported a strong second quarter and first half of 2007, with net income rising 16.2% and 10.5% respectively, leading to diluted earnings per share of $2.30 and $4.71 for the periods. This performance was bolstered by a significant increase in realized capital gains, which offset a slight decrease in property-liability earned premiums. The company's Allstate Financial segment also showed substantial improvement in net income, driven partly by the favorable comparison to the prior year's variable annuity business disposition. Allstate continued its aggressive share repurchase program, funded in part by a recent $1 billion issuance of junior subordinated debentures.
Key Highlights
- 1Net income increased by 16.2% to $1.40 billion in Q2 2007 and by 10.5% to $2.90 billion in the first half of 2007.
- 2Diluted EPS grew to $2.30 in Q2 2007 and $4.71 in the first half of 2007.
- 3Total revenues increased by 6.5% to $9.46 billion in Q2 2007 and by 4.6% to $18.79 billion in the first half of 2007.
- 4Realized capital gains on a pre-tax basis were $545 million in Q2 2007 compared to losses of $48 million in Q2 2006.
- 5Allstate Financial segment's net income increased significantly by $127 million in Q2 2007 and $183 million in the first half of 2007.
- 6The company repurchased $1.50 billion of its stock in Q2 2007 and has $1.59 billion remaining under its $4.00 billion share repurchase program.
- 7Property-Liability premiums earned saw a slight decrease of 0.6% in Q2 2007 and 0.8% in the first half of 2007.