Summary
The Allstate Corporation reported a significant decline in net income applicable to common shareholders for the first quarter of 2016, falling to $217 million ($0.57 per diluted share) from $648 million ($1.53 per diluted share) in the same period of 2015. This decrease was largely driven by substantially higher catastrophe losses and lower net investment income. Property-liability insurance premiums grew by 4.0% to $7.72 billion, reflecting rate increases and growth in auto and homeowners insurance. However, the combined ratio for property-liability operations deteriorated to 98.4% from 93.7% in the prior year, primarily due to a significant increase in catastrophe losses, which more than doubled to $827 million. Allstate Financial also saw a decline in net income, largely attributable to lower net investment income and realized capital losses. Despite the weaker quarterly performance, Allstate continued to manage its capital effectively, completing a $3 billion share repurchase program and announcing a new $1.5 billion program. The company's book value per diluted common share remained relatively stable. Investors should closely monitor the impact of ongoing catastrophe losses and the effectiveness of the company's pricing and underwriting actions aimed at improving profitability.
Financial Highlights
33 data points| Revenue | $8.87B |
| Interest Expense | $73.00M |
| Net Income | $246.00M |
| EPS (Basic) | $0.57 |
| EPS (Diluted) | $0.57 |
| Shares Outstanding (Basic) | 378.10M |
| Shares Outstanding (Diluted) | 382.90M |
Key Highlights
- 1Consolidated net income applicable to common shareholders decreased to $217 million ($0.57/share) from $648 million ($1.53/share) year-over-year.
- 2Property-Liability premiums earned increased 4.0% to $7.72 billion, driven by growth in auto and homeowners insurance.
- 3The Property-Liability combined ratio worsened to 98.4% from 93.7%, heavily impacted by a significant rise in catastrophe losses to $827 million (10.7% of earned premiums).
- 4Allstate Financial segment's net income applicable to common shareholders declined to $68 million from $183 million, largely due to lower net investment income and realized capital losses.
- 5Net investment income across the company decreased by 14.0% to $731 million, primarily due to lower limited partnership income and fixed income yields.
- 6The company completed its $3 billion share repurchase program and announced a new $1.5 billion repurchase authorization, demonstrating a commitment to returning capital to shareholders.
- 7Book value per diluted common share stood at $48.89 as of March 31, 2016, a slight decrease from $49.19 in the prior year but an increase from year-end 2015.