Early Access

10-QPeriod: Q2 FY2011

ALLSTATE CORP Quarterly Report for Q2 Ended Jun 30, 2011

Filed August 1, 2011For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

The Allstate Corporation reported a net loss of $620 million ($1.19 per diluted share) for the second quarter of 2011, a significant downturn from a net income of $145 million ($0.27 per diluted share) in the same period of 2010. This loss was primarily driven by a substantial increase in catastrophe losses, particularly impacting the Property-Liability segment, which reported an underwriting loss of $1.50 billion. Despite the overall loss, Allstate Financial demonstrated resilience with net income of $166 million, an improvement from a net loss of $107 million in the prior year's second quarter. Total revenues for the quarter showed a modest increase, driven by higher premiums in certain lines and improved investment income, though net investment income for the six-month period declined year-over-year. Investors should monitor the ongoing recovery in the homeowners insurance line and the performance of the Allstate Financial segment as key indicators for future profitability.

Financial Statements
Beta
Revenue$8.08B
Interest Expense$91.00M
Net Income-$624.00M
EPS (Basic)$-1.19
EPS (Diluted)$-1.19
Shares Outstanding (Basic)523.10M
Shares Outstanding (Diluted)523.10M

Key Highlights

  • 1Consolidated net loss of $620 million for Q2 2011, compared to net income of $145 million in Q2 2010.
  • 2Property-Liability segment reported a significant underwriting loss of $1.50 billion in Q2 2011, largely due to a substantial increase in catastrophe losses.
  • 3The Property-Liability combined ratio deteriorated to 123.3% in Q2 2011 from 96.8% in Q2 2010.
  • 4Allstate Financial segment reported a net income of $166 million in Q2 2011, an improvement from a net loss of $107 million in Q2 2010.
  • 5Total revenues increased to $8.08 billion in Q2 2011 from $7.66 billion in Q2 2010.
  • 6Homeowners premiums written increased by 2.5% for the Allstate brand in Q2 2011, while standard auto premiums written saw a slight decrease.
  • 7Shareholders' equity stood at $18.76 billion as of June 30, 2011, reflecting a slight decrease from December 31, 2010, impacted by share repurchases and dividends.

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