Summary
Allstate Corporation's (ALL) third quarter and nine-month 2015 results showed a decline in net income available to common shareholders compared to the same periods in 2014. For the third quarter, net income available to common shareholders was $621 million ($1.54 per diluted share), down from $750 million ($1.74 per diluted share) in Q3 2014. For the nine months, net income available to common shareholders was $1.595 billion ($3.87 per diluted share), down from $1.951 billion ($4.42 per diluted share) in the comparable 2014 period. The Property-Liability segment experienced a decrease in net income due to higher claims and claims expense, particularly unfavorable prior year reserve reestimates and a higher loss ratio. Conversely, the Allstate Financial segment saw a significant increase in net income, driven by higher net realized capital gains and improved premiums and contract charges, despite higher contract benefits. Total revenues saw a modest increase, with Property-Liability premiums written up by 4.2% in Q3 and 4.5% year-to-date, while Allstate Financial premiums and contract charges increased in Q3 but decreased slightly year-to-date. Investment income declined year-over-year for both segments, reflecting lower average investment balances and portfolio yields. The company continued its share repurchase program, with $1.1 billion remaining under its $3 billion authorization as of September 30, 2015.
Financial Highlights
33 data points| Revenue | $9.03B |
| Interest Expense | $73.00M |
| Net Income | $650.00M |
| EPS (Basic) | $1.56 |
| EPS (Diluted) | $1.54 |
| Shares Outstanding (Basic) | 397.00M |
| Shares Outstanding (Diluted) | 402.10M |
Key Highlights
- 1Consolidated net income available to common shareholders decreased in both Q3 2015 ($621M vs $750M in Q3 2014) and the first nine months of 2015 ($1.595B vs $1.951B in 9M 2014).
- 2Property-Liability segment net income available to common shareholders declined significantly in both periods, attributed to higher claims and claims expense, including unfavorable prior year reserve reestimates.
- 3Allstate Financial segment net income available to common shareholders saw a substantial increase in both Q3 2015 ($262M vs $116M in Q3 2014) and the first nine months of 2015 ($624M vs $423M in 9M 2014), driven by higher realized capital gains and improved premiums.
- 4Property-Liability combined ratio remained stable in Q3 2015 (93.6 vs 93.5 in Q3 2014) but increased for the nine months (95.8 vs 95.2 in 9M 2014), indicating slightly weaker underwriting profitability on a year-to-date basis.
- 5Total revenues increased slightly in Q3 2015 ($9.03B vs $8.94B in Q3 2014) and year-to-date ($26.96B vs $26.48B in 9M 2014), with Property-Liability premiums written showing growth.
- 6Net investment income decreased across consolidated operations and both key segments in Q3 and the first nine months of 2015, primarily due to lower average investment balances and yields.
- 7The company continued its common share repurchase program, with $1.1 billion remaining under its $3 billion authorization as of September 30, 2015.