Summary
For the second quarter and first six months of 2019, The Allstate Corporation reported strong growth in net income applicable to common shareholders, increasing by 21.1% and 25.8% respectively, compared to the prior year periods. This improvement was primarily driven by a significant shift from net realized capital losses in 2018 to net realized capital gains in 2019, coupled with higher premiums earned across various segments. The Property-Liability segment, particularly Allstate Protection, saw a decrease in underwriting income due to higher catastrophe losses, claim severity, and policy acquisition costs, despite increased premiums and improved auto claim frequency. The Service Businesses segment demonstrated significant growth, driven by acquisitions and improvements at SquareTrade and Allstate Dealer Services. The Life, Benefits, and Annuities segments showed mixed results, with Life and Benefits reporting slight declines or modest increases in net income, while Annuities experienced a notable increase in net income, largely driven by investment performance and lower interest crediting costs. Total investments grew, and shareholders' equity increased significantly, bolstered by strong investment performance and net income. The company also continued its share repurchase program and maintained a stable financial outlook with affirmed ratings from major agencies.
Financial Highlights
35 data points| Revenue | $11.14B |
| Interest Expense | $82.00M |
| Net Income | $851.00M |
| EPS (Basic) | $2.47 |
| EPS (Diluted) | $2.44 |
| Shares Outstanding (Basic) | 332.00M |
| Shares Outstanding (Diluted) | 336.90M |
Key Highlights
- 1Net income applicable to common shareholders increased by 21.1% to $821 million in Q2 2019 and by 25.8% to $2,082 million in the first six months of 2019, year-over-year.
- 2Total revenues increased by 10.3% to $11.14 billion in Q2 2019 and by 11.4% to $22.13 billion in the first six months of 2019.
- 3The Property-Liability combined ratio was 95.8% in Q2 2019 and 93.8% in the first six months of 2019, compared to 94.4% and 91.0% in the prior year periods, respectively, impacted by higher catastrophe losses.
- 4Allstate Protection underwriting income decreased by 19.2% in Q2 2019 and 26.8% in the first six months of 2019 due to higher catastrophe losses and claim severity.
- 5Service Businesses segment saw strong revenue growth of 25.9% in the first six months of 2019, driven by acquisitions and growth in SquareTrade.
- 6Investments grew to $86.49 billion as of June 30, 2019, with unrealized net capital gains increasing significantly.
- 7Shareholders' equity increased to $24.48 billion as of June 30, 2019.