Early Access

10-QPeriod: Q2 FY2021

ALLSTATE CORP Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 4, 2021For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

The Allstate Corporation reported a strong second quarter and first half of 2021, driven by significant increases in property and casualty insurance premiums and net investment income. Total revenues rose by 21.6% year-over-year in Q2 to $12.65 billion and by 23.8% in the first six months to $25.10 billion. This growth was largely attributed to the acquisition of National General, which bolstered market share in personal property-liability and enhanced the independent agent distribution platform. Net income applicable to common shareholders increased by 30.3% in Q2 to $1.60 billion, although it saw a substantial decrease of 89.2% in the first six months to $187 million, primarily due to a significant loss from discontinued operations. Despite increased non-catastrophe losses in the Allstate Protection segment, the company benefited from lower Shelter-in-Place Payback expenses and strong performance-based investment income from limited partnerships. Allstate also announced a new $5 billion common share repurchase program, signaling confidence in its financial position and commitment to returning capital to shareholders.

Financial Statements
Beta
Revenue$12.65B
Operating Income$3.84B
Interest Expense$91.00M
Net Income$1.63B
EPS (Basic)$5.34
EPS (Diluted)$5.26
Shares Outstanding (Basic)298.80M
Shares Outstanding (Diluted)303.30M

Key Highlights

  • 1Total revenues increased significantly in Q2 2021 to $12.65 billion and in the first six months to $25.10 billion, driven by higher property and casualty insurance premiums and net investment income.
  • 2Net income applicable to common shareholders increased 30.3% in Q2 2021 to $1.60 billion, but decreased 89.2% in the first six months to $187 million due to losses from discontinued operations.
  • 3The acquisition of National General, completed in January 2021, contributed to a 12.5% increase in Property-Liability premiums written in Q2 and a 13.1% increase in the first six months.
  • 4Net investment income more than tripled in Q2 2021 to $974 million and more than doubled in the first six months to $1.68 billion, largely driven by strong performance from limited partnerships.
  • 5Allstate Protection's underwriting income decreased in Q2 2021 due to higher non-catastrophe losses in auto and home, and increased amortization of deferred policy acquisition costs.
  • 6The company announced a new $5 billion common share repurchase program, indicating confidence in future performance and commitment to shareholder returns.
  • 7Allstate Health and Benefits saw a substantial increase in adjusted net income, primarily due to the integration of National General's group health and individual accident and health business.

Frequently Asked Questions