ALLSTATE CORP Quarterly Report for Q1 Ended Mar 31, 2018

Summary

Allstate Corporation reported solid financial results for the first quarter of 2018, with net income applicable to common shareholders increasing significantly to $946 million, or $2.63 per diluted share, up from $666 million, or $1.79 per diluted share, in the prior year period. This growth was driven by a substantial improvement in underwriting income within the Allstate Protection segment, largely due to a significant reduction in catastrophe losses compared to the prior year. The company also benefited from a lower effective tax rate resulting from the Tax Cuts and Jobs Act of 2017. The company's investment portfolio showed a slight increase in total value, and shareholders' equity also grew. Allstate continued its capital return initiatives, with common share repurchases and dividend payments. Management highlighted plans to utilize a portion of the tax savings for growth initiatives, employee enhancements, community support, and increased dividends.

Key Highlights

• 1Net income applicable to common shareholders increased to $946 million ($2.63/share) from $666 million ($1.79/share) in Q1 2017.
• 2Allstate Protection segment underwriting income surged to $962 million, a 74.9% increase, primarily driven by lower catastrophe losses and improved claim frequency.
• 3Total revenues increased to $9.77 billion, up from $9.64 billion in the prior year, supported by higher property-liability premiums and net investment income.
• 4Net investment income rose by 5.1% to $786 million, boosted by performance-based investments, particularly limited partnerships.
• 5The company adopted new accounting standards for financial assets and liabilities, impacting the reporting of equity securities and limited partnerships.
• 6Shareholders' equity increased to $23.28 billion, with book value per diluted common share reaching $58.64.
• 7Allstate paid $132 million in common stock dividends and continued its share repurchase program.

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