Summary
The Allstate Corporation's 10-Q filing for the period ending June 30, 2015, reveals a mixed financial performance compared to the prior year. Consolidated net income available to common shareholders declined to $326 million for the second quarter and $974 million for the first six months, down from $614 million and $1.20 billion respectively in the same periods of 2014. This decrease was largely driven by a significant drop in net income from the Property-Liability segment, which saw its combined ratio worsen to 100.1 in Q2 2015 from 97.4 in Q2 2014. This deterioration was influenced by higher catastrophe losses and unfavorable prior year reserve reestimates, particularly impacting the auto and homeowners lines. In contrast, the Allstate Financial segment demonstrated resilience, with net income available to common shareholders increasing to $179 million in Q2 2015 from $145 million in Q2 2014. This segment benefited from net realized capital gains and a reduction in interest credited to contractholder funds. Despite the decline in overall net income, total revenues saw a modest increase, driven by higher premiums in the Property-Liability segment, particularly in auto and homeowners insurance. The company continued its share repurchase program, with $1.9 billion remaining under its buyback authorization as of June 30, 2015.
Financial Highlights
33 data points| Revenue | $8.98B |
| Interest Expense | $73.00M |
| Net Income | $355.00M |
| EPS (Basic) | $0.80 |
| EPS (Diluted) | $0.79 |
| Shares Outstanding (Basic) | 407.00M |
| Shares Outstanding (Diluted) | 412.60M |
Key Highlights
- 1Consolidated net income available to common shareholders decreased significantly year-over-year, with Q2 2015 at $326 million (down from $614 million in Q2 2014) and year-to-date at $974 million (down from $1.20 billion in H1 2014).
- 2The Property-Liability segment experienced a decline in net income, with a worse combined ratio of 100.1 in Q2 2015 compared to 97.4 in Q2 2014, driven by higher catastrophe losses and unfavorable reserve reestimates.
- 3Allstate Financial segment showed improved performance, with net income available to common shareholders rising to $179 million in Q2 2015 from $145 million in Q2 2014.
- 4Total revenues increased slightly to $8.98 billion in Q2 2015 from $8.86 billion in Q2 2014, aided by a 4.8% rise in Property-Liability premiums earned.
- 5Net investment income decreased across segments, with total net investment income falling 12.1% to $789 million in Q2 2015 compared to $898 million in Q2 2014.
- 6The company continued to repurchase shares, with $1.9 billion remaining on its share repurchase program as of June 30, 2015.
- 7Shareholders' equity decreased to $21.30 billion as of June 30, 2015, from $22.30 billion as of December 31, 2014, partly due to share repurchases and lower unrealized gains.