Summary
Allstate Corporation reported a strong second quarter and first half of 2017, with net income applicable to common shareholders more than doubling year-over-year in both periods. This improvement was driven primarily by a significant rebound in the Property-Liability segment, which saw its combined ratio improve substantially to 97.2 in Q2 2017 from 100.8 in Q2 2016, indicating improved underwriting profitability. The Allstate Financial segment also demonstrated growth, with net income increasing year-over-year. The company's acquisition of SquareTrade in January 2017 contributed to increased revenues and goodwill. Investment income also saw a notable increase, reflecting strong performance in limited partnerships and higher invested assets. Allstate continued its capital return strategy through dividends and share repurchases, announcing a new $2 billion repurchase program. Key financial highlights include a substantial increase in Property-Liability net income, driven by a lower loss ratio and improved expense management, as evidenced by the better combined ratio. The Allstate Financial segment's net income also grew, supported by increased premiums and stronger investment income. While catastrophe losses remained a factor, their impact on the combined ratio was managed effectively. The company's investment portfolio saw an increase in unrealized capital gains, and net investment income improved across segments. Shareholder equity also grew, reflecting the positive financial performance and capital management activities.
Financial Highlights
34 data points| Revenue | $9.81B |
| Interest Expense | $83.00M |
| Net Income | $579.00M |
| EPS (Basic) | $1.51 |
| EPS (Diluted) | $1.49 |
| Shares Outstanding (Basic) | 363.60M |
| Shares Outstanding (Diluted) | 369.00M |
Key Highlights
- 1Consolidated net income applicable to common shareholders increased significantly to $550 million in Q2 2017 from $242 million in Q2 2016, and to $1.22 billion in the first six months of 2017 from $459 million in the same period of 2016.
- 2Property-Liability combined ratio improved to 97.2 in Q2 2017 from 100.8 in Q2 2016, indicating enhanced underwriting profitability.
- 3Net investment income increased by 17.7% to $897 million in Q2 2017 and by 10.2% to $1.65 billion in the first six months of 2017, driven by higher limited partnership income and increased invested assets.
- 4The acquisition of SquareTrade for $1.4 billion in January 2017 contributed to revenue growth and added $1.08 billion in goodwill.
- 5Shareholders' equity increased to $21.50 billion as of June 30, 2017, and the company announced a new $2 billion common share repurchase program.
- 6Allstate Financial segment reported an increase in net income to $146 million in Q2 2017 from $116 million in Q2 2016.
- 7Premiums earned in the Property-Liability segment increased by 2.6% in Q2 2017 and 2.8% in the first six months of 2017, indicating continued business growth.