Summary
The Allstate Corporation reported a net loss of $274 million for the first quarter of 2009, a significant decline from a net income of $348 million in the same period of 2008. This loss was driven by a combination of factors including lower net investment income, increased amortization of deferred policy acquisition costs, and a substantial increase in the valuation allowance for deferred tax assets, particularly related to capital losses. Property-Liability segment income also saw a substantial decrease, reporting $100 million in net income compared to $503 million in the prior year's first quarter, with a combined ratio of 96.8, up from 94.0 in the prior year, reflecting higher claim frequencies and severities in auto and homeowners lines, partially offset by lower catastrophe losses. The Allstate Financial segment also experienced a widening net loss, posting $(327) million compared to $(111) million in the prior year. This was largely due to accelerated amortization of deferred policy acquisition and sales inducement costs due to updated assumptions, lower investment spreads, and an increased valuation allowance for deferred tax assets. The company has taken steps to enhance liquidity and capital levels, including suspending its share repurchase program and reducing its shareholder dividend. Despite the challenging quarter, the company maintains a focus on financial strength and adapting to evolving market conditions.
Financial Highlights
18 data points| Revenue | $7.88B |
| Interest Expense | $88.00M |
| Net Income | -$274.00M |
| EPS (Basic) | $-0.51 |
| EPS (Diluted) | $-0.51 |
| Shares Outstanding (Basic) | 538.90M |
| Shares Outstanding (Diluted) | 538.90M |
Key Highlights
- 1Reported a net loss of $274 million for Q1 2009, down from $348 million in net income in Q1 2008.
- 2Property-Liability net income decreased to $100 million from $503 million year-over-year.
- 3The Property-Liability combined ratio deteriorated to 96.8 from 94.0, indicating increased claims and expenses relative to earned premiums.
- 4Allstate Financial segment posted a net loss of $327 million, a significant increase from $111 million in the prior year's quarter.
- 5Total revenues declined to $7.88 billion from $8.09 billion.
- 6Net investment income decreased by 22.9% to $1.18 billion due to lower average asset balances and reduced portfolio yields.
- 7Shareholders' equity decreased to $12.24 billion from $12.64 billion year-over-year, impacted by the net loss and increased unrealized capital losses.