Summary
Allstate Corporation's (ALL) third quarter and first nine months of 2014 results show a significant year-over-year improvement in net income available to common shareholders, reaching $750 million and $1.95 billion, respectively. This growth was driven by a strong performance in the Property-Liability segment, which saw increased premiums earned and improved underwriting income, despite higher catastrophe losses. The Allstate Financial segment also turned profitable, reporting net income of $116 million for the quarter and $423 million year-to-date, a marked improvement from the previous year's losses, largely due to the favorable impact of the Lincoln Benefit Life Company (LBL) sale and effective cost management. Key financial highlights include a robust increase in book value per diluted common share and a return on average equity of 13.6% for the trailing twelve months. The company continued its capital return strategy with common share repurchases and dividends. Despite a decrease in net investment income, the overall financial position remains strong, with significant shareholders' equity and ample liquidity sources to support ongoing operations and strategic initiatives.
Financial Highlights
33 data points| Revenue | $8.94B |
| Interest Expense | $78.00M |
| Net Income | $781.00M |
| EPS (Basic) | $1.77 |
| EPS (Diluted) | $1.74 |
| Shares Outstanding (Basic) | 424.50M |
| Shares Outstanding (Diluted) | 431.20M |
Key Highlights
- 1Consolidated net income available to common shareholders significantly increased to $750 million in Q3 2014 and $1.95 billion for the first nine months of 2014, compared to $310 million and $1.45 billion in the prior year periods.
- 2The Property-Liability segment reported strong underwriting income of $579 million in Q3 2014 and $1.15 billion year-to-date, despite a higher combined ratio (93.5% in Q3 2014 vs. 90.0% in Q3 2013) due to increased catastrophe losses.
- 3Allstate Financial swung to profitability, with net income of $116 million in Q3 2014 and $423 million year-to-date, a substantial improvement from the net losses reported in the comparable 2013 periods, aided by the sale of Lincoln Benefit Life Company.
- 4Property-Liability premiums earned increased by 4.8% in Q3 2014 to $7.31 billion and by 4.7% year-to-date to $21.58 billion, reflecting growth across auto and homeowners insurance lines.
- 5Book value per diluted common share rose to $48.28 as of September 30, 2014, marking an 11.0% increase from the prior year.
- 6The company repurchased $1.42 billion of common stock during the first nine months of 2014 and continued share repurchase programs, indicating a commitment to returning capital to shareholders.
- 7Total investments remained substantial at $80.72 billion as of September 30, 2014, though net investment income saw a decrease year-over-year due to lower fixed income yields and portfolio adjustments.