Summary
The Allstate Corporation's third quarter and first nine months of 2012 results show a significant improvement in profitability compared to the same periods in 2011. Consolidated net income for the nine months ended September 30, 2012, was $1.91 billion, a substantial increase from $75 million in the prior year period. This turnaround was largely driven by a strong performance in the Property-Liability segment, which moved from a net loss of $228 million in the first nine months of 2011 to a net income of $1.69 billion in the same period of 2012. This improvement was facilitated by a significantly lower combined ratio of 93.4 for the first nine months of 2012, compared to 107.7 in the prior year, largely due to a decrease in catastrophe losses and favorable prior year reserve reestimates. While the Allstate Financial segment experienced a decline in net income to $375 million from $455 million, this was primarily due to lower net investment income and realized capital losses compared to gains in the prior year. The company's investment portfolio also saw an increase in total investments and a significant rise in unrealized net capital gains. Allstate continued its focus on capital management, repurchasing shares and maintaining a solid capital position, with shareholders' equity increasing to $20.84 billion.
Financial Highlights
35 data points| Revenue | $8.13B |
| Interest Expense | $93.00M |
| Net Income | $723.00M |
| EPS (Basic) | $1.49 |
| EPS (Diluted) | $1.48 |
| Shares Outstanding (Basic) | 485.90M |
| Shares Outstanding (Diluted) | 489.90M |
Key Highlights
- 1Consolidated net income for the first nine months of 2012 was $1.91 billion, a significant increase from $75 million in the same period of 2011.
- 2Property-Liability segment reported a net income of $1.69 billion for the first nine months of 2012, a substantial turnaround from a net loss of $228 million in the prior year.
- 3The Property-Liability combined ratio improved to 93.4 for the first nine months of 2012 from 107.7 in the first nine months of 2011, driven by lower catastrophe losses and favorable reserve reestimates.
- 4Allstate Financial segment net income decreased to $375 million for the first nine months of 2012 from $455 million in the prior year, mainly due to lower investment income and realized capital losses.
- 5Total investments increased to $98.52 billion as of September 30, 2012, with unrealized net capital gains growing to $5.73 billion.
- 6Shareholders' equity increased to $20.84 billion as of September 30, 2012, supported by net income and investment gains, partially offset by share repurchases and dividends.
- 7The company repurchased $728 million of common shares in the first nine months of 2012 and had $166 million remaining on its $1 billion repurchase program.