Summary
Allstate Corporation (ALL) reported a solid third quarter and nine-month period ending September 30, 2018, with consolidated net income applicable to common shareholders increasing by 30.8% year-over-year for the quarter and 30.4% for the nine-month period. This improvement was driven by a 5.8% increase in total revenues for the quarter and 3.4% for the nine-month period, supported by higher insurance premiums across several segments. The company also benefited from lower catastrophe losses and the impact of the Tax Cuts and Jobs Act of 2017, which reduced the effective tax rate. However, higher property and casualty insurance non-catastrophe claims losses and increased amortization of deferred policy acquisition costs presented headwinds. Key segments like Allstate Protection showed strong revenue growth, although underwriting income saw a slight decrease in the quarter due to increased claim severity and operating costs, but improved significantly year-over-year for the nine-month period. Other segments, including Service Businesses, Allstate Life, and Allstate Benefits, also demonstrated positive performance with increased premiums and improved profitability. Allstate Annuities experienced a decrease in net investment income, impacting adjusted net income. The company also announced a new $3 billion common share repurchase program, signaling confidence in its financial position and commitment to returning capital to shareholders.
Financial Highlights
35 data points| Revenue | $10.46B |
| Interest Expense | $82.00M |
| Net Income | $979.00M |
| EPS (Basic) | $2.72 |
| EPS (Diluted) | $2.68 |
| Shares Outstanding (Basic) | 346.00M |
| Shares Outstanding (Diluted) | 351.70M |
Key Highlights
- 1Consolidated net income applicable to common shareholders increased by 30.8% year-over-year for the third quarter of 2018, reaching $833 million.
- 2Total revenues grew by 5.8% in Q3 2018 to $10.465 billion, driven by a 5.7% increase in insurance premiums.
- 3Property-Liability Operations reported a combined ratio of 94.3% for Q3 2018, an improvement from 94.5% for the first nine months of 2017, and underwriting income increased significantly year-over-year for the nine-month period.
- 4Allstate Protection segment saw premiums written increase by 5.9% in Q3 2018, reaching $8.8 billion, although underwriting income slightly decreased due to higher claim severity.
- 5The adoption of new accounting standards related to financial assets and liabilities effective January 1, 2018, impacted the reporting of equity investments and limited partnerships.
- 6The company announced a new $3 billion common share repurchase program, with $151 million remaining on a previous $2 billion program as of September 30, 2018.
- 7Net investment income remained flat in Q3 2018 compared to the prior year but decreased 1.4% for the first nine months due to lower performance-based investment results.