What was the primary reason for the decline in net income compared to the prior year's first quarter?

The primary reason for the decline in net income was a significant increase in catastrophe losses within the Property-Liability segment. Additionally, higher operating costs and expenses, and a less favorable expense ratio contributed to the decrease in profitability for this segment.

How did the Allstate Financial segment perform in the first quarter of 2013?

The Allstate Financial segment showed improvement, with net income rising to $146 million from $112 million in the prior year's quarter. This was driven by positive net realized capital gains, lower interest credited to contractholder funds, and reduced amortization of deferred acquisition costs, despite a slight decrease in net investment income.

What is the company's strategy regarding capital return to shareholders?

The company is actively returning capital to shareholders through share repurchases and dividends. During the first quarter of 2013, Allstate repurchased $226 million of its common stock in the open market and initiated an accelerated share repurchase program to buy back an additional $500 million of stock. There was also $1.33 billion remaining authorization for future repurchases.

How is the company managing its investment portfolio and what are the key trends in investment income?

The company's total investments remained relatively stable at $97.38 billion. Net investment income decreased by 2.8% to $983 million. This decrease was attributed to lower average investment balances and a decline in fixed income yields, partly offset by higher limited partnership income and some litigation proceeds. The company is actively managing its investment portfolio to reduce interest rate risk.

ALLSTATE CORP 10-Q Quarterly Report Q1 FY2013

Summary

The Allstate Corporation reported net income of $709 million ($1.47 per diluted share) for the first quarter of 2013, a decrease from $766 million ($1.53 per diluted share) in the prior year's first quarter. While total revenues saw a slight increase to $8.46 billion from $8.36 billion, driven by higher property-liability and Allstate Financial segment revenues, the overall profitability was impacted by increased catastrophe losses and a higher expense ratio in the property-liability segment. Key drivers for the quarter included growth in property-liability premiums written, up 2.5% to $6.63 billion, and a 6.4% increase in life and annuity premiums and contract charges to $579 million. The Allstate Financial segment demonstrated improved net income, rising to $146 million from $112 million, bolstered by net realized capital gains. However, the property-liability segment's net income declined to $616 million from $695 million, with the combined ratio worsening to 93.2 from 92.1, largely due to a significant increase in catastrophe losses. The company continued its capital return strategy, repurchasing $500 million of stock under an accelerated share repurchase agreement.

Financial Highlights

32 data points

Beta

Revenue

$8.46B

Net Income

$709.00M

0.1% Net Margin

EPS (Diluted)

$1.47

Total Assets

$126.61B

Cash & Equivalents

$820.00M

Free Cash Flow

$680.00M

Financial Statements

Beta

Revenue	$8.46B
Interest Expense	$98.00M
Net Income	$709.00M
EPS (Basic)	$1.49
EPS (Diluted)	$1.47
Shares Outstanding (Basic)	475.40M
Shares Outstanding (Diluted)	480.80M

Key Highlights

1Consolidated net income decreased to $709 million ($1.47/share) from $766 million ($1.53/share) year-over-year.
2Property-Liability segment net income declined to $616 million from $695 million, with the combined ratio increasing to 93.2 from 92.1.
3Catastrophe losses in the Property-Liability segment increased significantly to $359 million from $259 million.
4Allstate Financial segment net income improved to $146 million from $112 million, driven by net realized capital gains and lower expenses.
5Total revenues increased to $8.46 billion from $8.36 billion.
6Property-Liability premiums earned grew by 2.1% to $6.77 billion.
7The company repurchased $500 million of common stock under an accelerated share repurchase agreement and continued strategic investments.

ALLSTATE CORP Quarterly Report for Q1 Ended Mar 31, 2013

Summary

Financial Highlights

Key Highlights

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