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10-QPeriod: Q1 FY2015

ALLSTATE CORP Quarterly Report for Q1 Ended Mar 31, 2015

Filed May 5, 2015For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

Allstate Corporation reported a solid first quarter in 2015, with consolidated net income available to common shareholders increasing to $648 million from $587 million in the same period last year. This growth was driven by improved performance in both the Property-Liability and Allstate Financial segments. The Property-Liability segment saw its net income rise to $538 million, supported by a lower combined ratio of 93.7% and an increase in premiums earned. Allstate Financial also contributed positively, with net income of $183 million, benefiting from higher realized capital gains despite a decrease in net investment income. Key drivers for the Property-Liability segment included a reduction in catastrophe losses compared to the prior year and disciplined underwriting, leading to higher underwriting income. Allstate Financial experienced growth in its life insurance and accident & health businesses. Overall, the company demonstrated effective investment management, with total investments remaining substantial and a notable increase in unrealized net capital gains. The company also continued its commitment to shareholder returns through significant share repurchases and dividends.

Financial Statements
Beta
Revenue$8.95B
Interest Expense$73.00M
Net Income$677.00M
EPS (Basic)$1.56
EPS (Diluted)$1.53
Shares Outstanding (Basic)415.80M
Shares Outstanding (Diluted)422.60M

Key Highlights

  • 1Consolidated net income available to common shareholders increased by 10.4% to $648 million in Q1 2015 compared to $587 million in Q1 2014.
  • 2Property-Liability net income rose by 9.1% to $538 million, driven by a lower combined ratio of 93.7% (down from 94.7%) and a 5.1% increase in premiums earned.
  • 3Allstate Financial segment net income grew by 13.0% to $183 million, supported by higher realized capital gains and growth in specific product lines.
  • 4Total revenues increased by 3.1% to $8.95 billion, reflecting growth in property-liability premiums earned.
  • 5The company actively returned capital to shareholders, completing a $2.5 billion share repurchase program and initiating a new $3 billion program, alongside regular dividend payments.
  • 6Investments totaled $80.44 billion, with a significant increase in unrealized net capital gains to $3.58 billion.
  • 7Property-Liability catastrophe losses decreased significantly to $294 million from $445 million year-over-year.

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