Summary
Allstate Corporation reported a significant turnaround in its financial performance for the six months ended June 30, 2012, compared to the same period in 2011. The company posted a net income of $1.19 billion, a substantial recovery from the $100 million net loss recorded in the prior year. This improvement was driven by a strong rebound in its Property-Liability segment, which reported a net income of $1.05 billion, reversing a $269 million net loss in the previous year. This was largely attributed to a dramatic reduction in catastrophe losses and favorable prior year reserve reestimates, leading to a combined ratio of 95.1% for the six-month period, a significant improvement from 109.1% in the prior year. While the Allstate Financial segment saw a slight decrease in net income to $244 million from $263 million, the overall consolidated results demonstrate a much healthier financial position. The company's investment portfolio also saw growth, with total investments increasing to $97.32 billion, and net investment income showing a modest increase. Management is focused on maintaining auto profitability, improving homeowners and annuity returns, growing premiums, and prudently managing investments and capital, with a share repurchase program demonstrating confidence in future performance.
Financial Highlights
35 data points| Revenue | $8.28B |
| Interest Expense | $93.00M |
| Net Income | $423.00M |
| EPS (Basic) | $0.86 |
| EPS (Diluted) | $0.86 |
| Shares Outstanding (Basic) | 490.60M |
| Shares Outstanding (Diluted) | 493.80M |
Key Highlights
- 1Consolidated net income for the six months ended June 30, 2012, was $1.19 billion, a significant improvement from a net loss of $100 million in the same period of 2011.
- 2The Property-Liability segment reported a net income of $1.05 billion for the six months ended June 30, 2012, a substantial recovery from a net loss of $269 million in the prior year.
- 3The Property-Liability combined ratio improved to 95.1% for the first six months of 2012 from 109.1% in the first six months of 2011, driven by lower catastrophe losses and favorable reserve reestimates.
- 4Total investments grew to $97.32 billion as of June 30, 2012, an increase of 1.8% from December 31, 2011.
- 5Net investment income increased slightly to $2.04 billion for the first six months of 2012 from $2.00 billion in the same period of 2011.
- 6Shareholders' equity increased to $19.48 billion as of June 30, 2012, from $18.30 billion as of December 31, 2011.
- 7Allstate repurchased $575 million of common shares in the first six months of 2012 under its ongoing share repurchase program.