What drove the significant increase in Allstate's net income in the first quarter of 2011?

The substantial increase in net income was primarily driven by a strong recovery in the Property-Liability segment, which benefited from a significant decrease in catastrophe losses and improved underwriting results. Additionally, Allstate Financial also showed robust growth in net income, and the company recorded substantial net realized capital gains, contrasting with significant realized capital losses in the prior year's first quarter.

How did the Property-Liability segment perform in Q1 2011?

The Property-Liability segment saw a significant improvement, with net income rising to $468 million compared to $164 million in the first quarter of 2010. This was largely due to a lower combined ratio of 94.9, down from 98.9, primarily driven by a notable reduction in catastrophe losses, which were $333 million in Q1 2011 compared to $648 million in Q1 2010. Underwriting income for this segment was $327 million, a substantial increase from $71 million in the prior year.

What is the outlook for Allstate's investment portfolio and net investment income?

Allstate's investment portfolio remained strong, with total investments of $99.61 billion as of March 31, 2011. Net investment income for the quarter was $982 million, a decrease of 6.5% from $1.05 billion in the prior year, mainly due to lower yields resulting from prior risk mitigation actions and reduced average investment balances. The company continues to focus on optimizing its investment strategy.

How did Allstate manage its capital and liquidity during the quarter?

Shareholders' equity increased to $19.31 billion as of March 31, 2011. Allstate continued to return capital to shareholders through dividends ($0.21 per share for the quarter) and share repurchases, buying back 9.5 million shares for $300 million in Q1 2011. The company had $540 million remaining on its $1.00 billion share repurchase program, expected to be completed by March 31, 2012. Allstate believes it has sufficient liquidity, supported by deployable invested assets at the parent company and its revolving credit facility.

ALLSTATE CORP 10-Q Quarterly Report Q1 FY2011

Summary

Allstate Corporation reported a significant increase in net income for the first quarter of 2011, reaching $519 million ($0.97 per diluted share), a substantial improvement from $120 million ($0.22 per diluted share) in the same period of 2010. This growth was driven by a strong recovery in the Property-Liability segment, which saw its net income rise to $468 million from $164 million year-over-year, supported by a lower combined ratio of 94.9 compared to 98.9 in the prior year. The improvement in underwriting results was largely attributed to a considerable decrease in catastrophe losses. Allstate Financial also contributed positively, with net income increasing to $97 million from $4 million. Total revenues experienced a moderate increase to $8.10 billion from $7.75 billion. While Property-Liability premiums earned saw a slight decrease, Allstate Financial's premiums and contract charges grew. The company's investment portfolio remained robust, though net investment income saw a decline. Realized capital gains played a crucial role in the improved earnings, contrasting with significant realized capital losses in the prior year. Looking ahead, Allstate highlighted its ongoing focus on improving operating results, growing its businesses profitably, and differentiating itself through innovation. Shareholder returns were supported by dividends and share repurchases, with a significant portion of the current share repurchase program remaining.

Financial Highlights

34 data points

Beta

Revenue

$8.10B

Net Income

$524.00M

0.1% Net Margin

EPS (Diluted)

$0.98

Total Assets

$130.43B

Cash & Equivalents

$641.00M

Free Cash Flow

$678.00M

Financial Statements

Beta

Revenue	$8.10B
Interest Expense	$92.00M
Net Income	$524.00M
EPS (Basic)	$0.99
EPS (Diluted)	$0.98
Shares Outstanding (Basic)	531.00M
Shares Outstanding (Diluted)	533.60M

Key Highlights

1Consolidated net income surged to $519 million ($0.97/share) in Q1 2011, up from $120 million ($0.22/share) in Q1 2010.
2Property-Liability net income increased significantly to $468 million from $164 million.
3The Property-Liability combined ratio improved to 94.9 from 98.9, primarily due to a substantial reduction in catastrophe losses.
4Allstate Financial's net income showed strong growth, reaching $97 million compared to $4 million in the prior year.
5Total revenues rose to $8.10 billion from $7.75 billion, driven by increased realized capital gains and higher premiums in Allstate Financial.
6Net realized capital gains of $96 million were recorded in Q1 2011, a significant turnaround from net realized capital losses of $348 million in Q1 2010.
7Shareholders' equity grew to $19.31 billion as of March 31, 2011, supported by earnings and improved investment valuations.

ALLSTATE CORP Quarterly Report for Q1 Ended Mar 31, 2011

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions