What was the primary driver of the increase in Allstate's net income for the second quarter and first half of 2018?

The primary drivers for the increase in net income were higher property-liability insurance premiums, improved underwriting income in the Allstate Protection segment (due to lower catastrophe losses and favorable prior year reserve reestimates), and the benefits of the Tax Cuts and Jobs Act of 2017 which reduced the effective tax rate.

How did the "Allstate Protection" segment perform in Q2 2018?

The Allstate Protection segment showed strong performance, with underwriting income increasing by 55.2% to $419 million in Q2 2018 compared to $270 million in Q2 2017. This improvement was largely attributed to increased premiums earned, lower catastrophe losses, reduced auto claim frequency, and favorable non-catastrophe prior year reserve reestimates, partially offset by higher claim severity and operating costs.

What is the company's current capital position and how is it managing shareholder returns?

As of June 30, 2018, shareholders' equity stood at $23.12 billion, an increase from the prior year. The company has a debt-to-equity ratio of 27.9%. Allstate returned capital to shareholders through a $400 million accelerated share repurchase agreement and continued to pay common shareholder dividends, demonstrating a commitment to enhancing shareholder value.

Were there any significant changes in accounting standards adopted during this period that could impact comparability?

Yes, Allstate adopted new accounting standards for the recognition and measurement of financial assets and liabilities, effective January 1, 2018. This led to equity securities being reported at fair value with changes recognized in realized capital gains and losses, and limited partnerships previously on the cost method now being reported at fair value with changes recognized in net investment income. This change impacts the comparability of investment-related income and gains/losses.

ALLSTATE CORP 10-Q Quarterly Report Q2 FY2018

Summary

The Allstate Corporation reported a solid second quarter and first half of 2018, demonstrating growth in key financial metrics. Net income saw a significant increase of 15.8% in Q2 and 30.2% year-to-date, driven by higher property-liability insurance premiums, improved underwriting results primarily in the Allstate Protection segment, and the benefits of the Tax Cuts and Jobs Act of 2017 which lowered the effective tax rate. Total revenues grew by 2.9% in Q2 and 2.1% year-to-date, fueled by a 5.4% and 4.7% increase in insurance premiums respectively across various segments like Allstate Protection, Service Businesses, Allstate Benefits, and Allstate Life. While net investment income saw a slight decrease, the company's overall financial health appears robust, supported by strong capital resources and ongoing share repurchase programs.

Financial Highlights

35 data points

Beta

Revenue

$10.10B

Net Income

$717.00M

0.1% Net Margin

EPS (Diluted)

$1.91

Total Assets

$113.37B

Cash & Equivalents

$489.00M

Free Cash Flow

$1.40B

Financial Statements

Beta

Revenue	$10.10B
Interest Expense	$86.00M
Net Income	$717.00M
EPS (Basic)	$1.94
EPS (Diluted)	$1.91
Shares Outstanding (Basic)	349.20M
Shares Outstanding (Diluted)	354.60M

Key Highlights

1Consolidated net income increased significantly by 15.8% in Q2 2018 and 30.2% year-to-date, reflecting improved profitability.
2Total revenues grew by 2.9% in Q2 and 2.1% year-to-date, primarily driven by a 5.4% and 4.7% increase in insurance premiums, respectively.
3Allstate Protection segment underwriting income surged by 55.2% in Q2 and 68.4% year-to-date, benefiting from higher premiums, reduced catastrophe losses, and favorable prior year reserve reestimates.
4The Property-Liability combined ratio improved to 94.9 in Q2 2018 from 96.6 in Q2 2017, and to 91.5 year-to-date from 94.8.
5Shareholders' equity increased to $23.12 billion as of June 30, 2018, up from $22.55 billion at the end of 2017, supported by net income and preferred stock issuances.
6The company executed a $400 million accelerated share repurchase agreement, repurchasing 4.3 million shares in Q2 2018, demonstrating a commitment to returning capital to shareholders.

ALLSTATE CORP Quarterly Report for Q2 Ended Jun 30, 2018

Summary

Financial Highlights

Key Highlights

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