Summary
The Allstate Corporation reported a significant decline in net income for the second quarter and first six months of 2008 compared to the prior year. Net income for the second quarter of 2008 was $25 million, a sharp decrease from $1.40 billion in the same period of 2007. Similarly, net income for the first six months of 2008 fell to $373 million from $2.89 billion in the prior year. This downturn was largely driven by substantial realized capital losses, totaling $1.22 billion in the second quarter and $1.87 billion in the first six months of 2008, contrasting with significant capital gains in the comparable periods of 2007. The Property-Liability segment's combined ratio deteriorated, reaching 94.4% in Q2 2008 from 87.6% in Q2 2007, largely due to increased catastrophe losses. The Allstate Financial segment reported a net loss of $379 million in Q2 2008, a reversal from a net income of $200 million in the prior year, also heavily influenced by realized capital losses. Despite a decrease in total revenues, the company continued its share repurchase program.
Financial Highlights
21 data points| Revenue | $7.42B |
| Interest Expense | $88.00M |
| Net Income | $25.00M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 551.80M |
| Shares Outstanding (Diluted) | 553.80M |
Key Highlights
- 1Net income for Q2 2008 was $25 million, down from $1.40 billion in Q2 2007.
- 2First six months net income was $373 million, down from $2.89 billion in the prior year.
- 3Property-Liability combined ratio worsened to 94.4% in Q2 2008 from 87.6% in Q2 2007.
- 4Allstate Financial segment reported a net loss of $379 million in Q2 2008, compared to a net income of $200 million in Q2 2007.
- 5Realized capital losses were substantial: $1.22 billion in Q2 2008 and $1.87 billion in the first six months of 2008.
- 6Catastrophe losses increased significantly to $698 million in Q2 2008 from $433 million in Q2 2007.