Summary
The Allstate Corporation reported a strong financial performance for the nine months ended September 30, 2017, with consolidated net income applicable to common shareholders reaching $1.85 billion, a significant increase from $950 million in the same period of the previous year. This growth was driven by robust performance across both Property-Liability and Allstate Financial segments. The Property-Liability segment saw a notable improvement in its combined ratio to 95.2 from 98.2, indicating better underwriting profitability, supported by increased premiums earned and favorable prior year reserve reestimates, though partially offset by higher catastrophe losses. Allstate Financial also demonstrated substantial growth, with net income applicable to common shareholders more than doubling year-over-year. This was fueled by increased net investment income and positive realized capital gains, contrasting with losses in the prior year. The company's investment portfolio also grew, with total investments reaching $82.77 billion. Investors should note the acquisition of SquareTrade for $1.4 billion in January 2017, which broadens Allstate's product offerings and contributes to the growth in premiums earned. The company also continued its commitment to shareholder returns through share repurchases and dividends.
Financial Highlights
34 data points| Revenue | $9.89B |
| Interest Expense | $83.00M |
| Net Income | $666.00M |
| EPS (Basic) | $1.76 |
| EPS (Diluted) | $1.74 |
| Shares Outstanding (Basic) | 361.30M |
| Shares Outstanding (Diluted) | 367.10M |
Key Highlights
- 1Consolidated net income applicable to common shareholders was $1.85 billion for the first nine months of 2017, up from $950 million in the prior year.
- 2Property-Liability combined ratio improved to 95.2 for the first nine months of 2017, down from 98.2 in the prior year, indicating enhanced underwriting profitability.
- 3Allstate Financial segment's net income applicable to common shareholders significantly increased to $422 million for the first nine months of 2017, from $264 million in the prior year.
- 4Total revenues increased to $28.68 billion for the first nine months of 2017, up from $27.26 billion in the prior year.
- 5Property-Liability premiums earned grew by 3.0% to $24.10 billion for the first nine months of 2017.
- 6Net investment income increased by 11.0% to $2.49 billion for the first nine months of 2017.
- 7The company completed the acquisition of SquareTrade for $1.4 billion in January 2017.
- 8Book value per diluted common share increased by 9.7% to $50.77 as of December 31, 2016, from $55.69 as of September 30, 2017.