Summary
Allstate Corporation's first quarter 2019 results show a significant increase in net income applicable to common shareholders, driven largely by a substantial swing from net realized capital losses in the prior year to net realized capital gains in the current quarter. Total revenues also saw a healthy increase, propelled by these investment gains and growth in insurance premiums across various segments, including Property-Liability, Service Businesses, Allstate Life, and Allstate Benefits. While the Allstate Protection segment's underwriting income decreased due to higher catastrophe losses and claim severity, this was partially offset by improved auto claim frequency and increased premiums. The company continues to focus on strategic priorities including customer service, economic return on capital, customer base growth, proactive investment management, and building long-term growth platforms. The balance sheet remains robust, with shareholders' equity increasing and the company demonstrating strong liquidity through its intercompany agreements and credit facilities. Despite challenges like increased catastrophe losses, Allstate's diversified business segments and strategic focus suggest a resilient operational performance.
Financial Highlights
34 data points| Revenue | $10.99B |
| Interest Expense | $83.00M |
| Net Income | $1.29B |
| EPS (Basic) | $3.79 |
| EPS (Diluted) | $3.74 |
| Shares Outstanding (Basic) | 332.60M |
| Shares Outstanding (Diluted) | 337.50M |
Key Highlights
- 1Net income applicable to common shareholders increased by 29.1% to $1.261 billion in Q1 2019 compared to $977 million in Q1 2018.
- 2Total revenue grew by 12.5% to $10.99 billion in Q1 2019 from $9.77 billion in Q1 2018, driven by net realized capital gains versus losses and increased insurance premiums.
- 3The Allstate Protection segment experienced a 30.3% decrease in underwriting income to $703 million, primarily due to higher catastrophe losses, claim severity, and operating costs.
- 4Net investment income decreased by 13.6% to $291 million for the Property-Liability operations due to lower performance-based investment results.
- 5Service Businesses reported an adjusted net income of $11 million, an improvement from an adjusted net loss of $3 million in the prior year, driven by growth in SquareTrade and acquisitions.
- 6Shareholders' equity stood at $23.42 billion as of March 31, 2019, with book value per diluted common share increasing to $63.59.
- 7The company repurchased 1.40 million shares for approximately $121 million during the quarter and has $2.07 billion remaining on its share repurchase program.