Summary
The Allstate Corporation reported a decrease in net income applicable to common shareholders for the second quarter and first six months of 2016 compared to the same periods in 2015. Net income for Q2 2016 was $242 million ($0.64 per diluted share), down from $326 million ($0.79 per diluted share) in Q2 2015. For the first six months, net income was $459 million ($1.21 per diluted share), a significant drop from $974 million ($2.33 per diluted share) in the prior year's period. This decline was primarily driven by lower net investment income and reduced realized capital gains, compounded by higher catastrophe losses and an increased loss ratio in the Property-Liability segment. Despite these headwinds, total revenues saw a modest increase, supported by growth in Property-Liability insurance premiums earned. The company continued to manage its investment portfolio actively and returned capital to shareholders through share repurchases and dividends.
Financial Highlights
33 data points| Revenue | $9.16B |
| Interest Expense | $72.00M |
| Net Income | $271.00M |
| EPS (Basic) | $0.65 |
| EPS (Diluted) | $0.64 |
| Shares Outstanding (Basic) | 373.60M |
| Shares Outstanding (Diluted) | 378.10M |
Key Highlights
- 1Consolidated net income applicable to common shareholders decreased to $242 million in Q2 2016 from $326 million in Q2 2015, and to $459 million for the first six months of 2016 from $974 million in the prior year period.
- 2Property-Liability premiums earned increased by 3.5% in Q2 2016 and 3.8% for the first six months of 2016, reflecting growth in auto and homeowners insurance.
- 3The Property-Liability combined ratio worsened to 100.8% in Q2 2016 from 100.1% in Q2 2015, and to 99.6% for the first six months of 2016 from 96.9% in the prior year period, largely due to higher catastrophe losses.
- 4Catastrophe losses significantly increased, impacting the Property-Liability segment, with losses of $961 million in Q2 2016 compared to $797 million in Q2 2015, and $1.79 billion for the first six months of 2016 compared to $1.09 billion in the prior year period.
- 5Net investment income decreased in both the second quarter and first six months of 2016, attributed to lower fixed income yields and reduced income from limited partnerships.
- 6The company continued its share repurchase program, completing a $3 billion program and announcing a new $1.5 billion program, while also paying common shareholder dividends.