ALLSTATE CORP Quarterly Report for Q2 Ended Jun 30, 2013

Summary

Allstate Corporation's Q2 2013 results show a mixed financial performance. Net income available to common shareholders increased slightly year-over-year to $434 million for the quarter, driven by improved underwriting income in the Property-Liability segment, which benefited from lower catastrophe losses compared to the prior year. However, net income for the first six months of 2013 declined modestly compared to the same period in 2012, primarily due to lower net investment income and increased restructuring charges. The company continues to navigate a low interest rate environment, impacting investment yields. Allstate Financial segment saw a notable increase in net income, driven by higher realized capital gains and improved premium growth. The company also took significant steps to manage its capital structure, issuing new debt and preferred stock, while also repurchasing a substantial amount of its outstanding debt, resulting in a pre-tax loss on extinguishment. The focus remains on growing premiums, maintaining auto profitability, and improving returns in homeowners and annuities.

Key Highlights

• 1Net income available to common shareholders was $434 million for Q2 2013, up from $423 million in Q2 2012.
• 2Property-Liability net income rose to $617 million in Q2 2013 from $354 million in Q2 2012, supported by a combined ratio of 96.1.
• 3Allstate Financial segment's net income increased to $190 million in Q2 2013 from $132 million in Q2 2012.
• 4Total revenues increased to $8.79 billion in Q2 2013 from $8.28 billion in Q2 2012.
• 5The company issued $500 million in Senior Notes due 2023 and $500 million in Senior Notes due 2043 in June 2013.
• 6Allstate repurchased $1.83 billion of debt in June 2013, resulting in a $480 million pre-tax loss on extinguishment.
• 7Book value per diluted common share was $41.63 as of June 30, 2013, an increase from $39.73 as of June 30, 2012.

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