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10-QPeriod: Q3 FY2010

ALLSTATE CORP Quarterly Report for Q3 Ended Sep 30, 2010

Filed October 27, 2010For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

Allstate Corporation's (ALL) Q3 2010 results showed a notable increase in net income, reaching $367 million compared to $221 million in the same quarter of the prior year. This improvement was driven by a combination of factors including a reduction in realized capital losses and a turnaround in the Allstate Financial segment, which reported a net income of $85 million versus a net loss of $38 million in Q3 2009. The Property-Liability segment demonstrated stable underwriting income, though the combined ratio saw a slight increase to 95.9% due to higher catastrophe losses and prior year reserve reestimates, partially offset by favorable developments in other lines. Investment income saw a decrease year-over-year, reflecting lower yields and duration shortening strategies, while the company maintained a strong capital position with shareholders' equity increasing to $19.27 billion.

Financial Statements
Beta
Revenue$7.91B
Interest Expense$91.00M
Net Income$367.00M
EPS (Basic)$0.68
EPS (Diluted)$0.68
Shares Outstanding (Basic)540.90M
Shares Outstanding (Diluted)543.00M

Key Highlights

  • 1Consolidated net income increased to $367 million in Q3 2010 from $221 million in Q3 2009.
  • 2Allstate Financial segment turned profitable, reporting $85 million in net income for Q3 2010, compared to a net loss of $38 million in Q3 2009.
  • 3Property-Liability combined ratio was 95.9% for Q3 2010, an increase from 94.7% in Q3 2009, impacted by catastrophe losses and reserve reestimates.
  • 4Total revenues increased to $7.91 billion in Q3 2010 from $7.58 billion in Q3 2009.
  • 5Net investment income decreased to $1.01 billion in Q3 2010 from $1.08 billion in Q3 2009.
  • 6Shareholders' equity grew to $19.27 billion at September 30, 2010, up from $16.69 billion at December 31, 2009.
  • 7The company reported $3.53 billion in deployable invested assets at the parent holding company level.

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