Summary
Allstate Corp. reported a net loss of $1.38 billion for the first quarter of 2021, a significant decrease from a net income of $549 million in the prior year period. This loss was primarily driven by a substantial loss from discontinued operations, which amounted to $3.79 billion, largely attributable to the pending sale of its life and annuity businesses. Despite the overall net loss, the company's core Property-Liability operations showed resilience, with underwriting income increasing by 22.9% to $1.66 billion, bolstered by the acquisition of National General Holdings Corp. and favorable auto non-catastrophe losses. Total revenues saw a notable increase of 26.2% to $12.45 billion, driven by higher insurance premiums and a significant rise in net investment income, largely from performance-based investments. The company also continued its share repurchase program and paid dividends, demonstrating a commitment to shareholder returns.
Financial Highlights
36 data points| Revenue | $12.45B |
| Operating Income | $2.41B |
| Interest Expense | $86.00M |
| Net Income | -$1.38B |
| EPS (Basic) | $-4.65 |
| EPS (Diluted) | $-4.60 |
| Shares Outstanding (Basic) | 302.50M |
| Shares Outstanding (Diluted) | 306.40M |
Key Highlights
- 1Reported a net loss of $1.38 billion for Q1 2021, primarily due to a $3.79 billion loss from discontinued operations related to the sale of life and annuity businesses.
- 2Allstate Protection segment underwriting income increased 22.9% to $1.66 billion, driven by the National General acquisition and favorable auto non-catastrophe losses.
- 3Total revenues grew 26.2% to $12.45 billion, supported by a 11.6% increase in property and casualty insurance premiums and a significant rise in net investment income.
- 4Acquired National General Holdings Corp. on January 4, 2021, enhancing the company's market share in personal property-liability and independent agent distribution.
- 5Announced pending sales of Allstate Life Insurance Company and Allstate Life Insurance Company of New York for approximately $3.0 billion, recording a $4 billion after-tax loss on disposition in Q1 2021.
- 6Net investment income increased by 187.8% to $708 million, largely due to improved performance-based income, especially from limited partnerships.
- 7Shareholders' equity decreased to $26.82 billion from $30.22 billion at the end of 2020, impacted by unrealized capital losses and discontinued operations, while common share repurchases and dividends continued.