Summary
Allstate Corporation (ALL) reported mixed results for the third quarter and first nine months of 2021. Total revenues increased significantly year-over-year, driven by higher property and casualty insurance premiums, largely attributed to the acquisition of National General. Net investment income also saw a substantial increase due to performance-based income from limited partnerships. However, profitability was impacted by higher non-catastrophe and catastrophe losses in the Property-Liability segment, particularly affecting the Allstate Protection business. This led to an underwriting loss in the Allstate Protection segment for the quarter and a significant decrease in underwriting income for the year-to-date period. The company also experienced a substantial loss from discontinued operations due to the sale of its life and annuity businesses. Financially, Allstate's shareholders' equity decreased compared to the prior year, impacted by share repurchases and dividends, while debt levels increased slightly. The company remains focused on its "Transformative Growth" strategy, aiming to increase market share in personal property-liability and expand protection offerings.
Financial Highlights
36 data points| Revenue | $12.48B |
| Operating Income | $4.05B |
| Interest Expense | $69.00M |
| Net Income | $538.00M |
| EPS (Basic) | $1.73 |
| EPS (Diluted) | $1.71 |
| Shares Outstanding (Basic) | 293.10M |
| Shares Outstanding (Diluted) | 297.90M |
Key Highlights
- 1Total revenues increased by 16.9% to $12.48 billion in Q3 2021 and by 21.4% to $37.58 billion in the first nine months of 2021, driven by higher property and casualty insurance premiums and net investment income.
- 2Net income applicable to common shareholders decreased significantly to $508 million in Q3 2021 (down 54.9% year-over-year) and $695 million in the first nine months of 2021 (down 75.7% year-over-year), primarily due to higher catastrophe and non-catastrophe losses and a substantial loss from discontinued operations.
- 3The Allstate Protection segment reported an underwriting loss of $421 million in Q3 2021, a significant decline from an underwriting income of $887 million in Q3 2020, primarily due to higher non-catastrophe losses and increased underwriting expenses.
- 4Net investment income increased substantially by $300 million to $764 million in Q3 2021 and by $1.52 billion to $2.45 billion in the first nine months of 2021, mainly driven by performance-based income from limited partnerships.
- 5The company completed the acquisition of National General Holdings Corp. in January 2021, which is expected to enhance its position in the independent agency channel and increase market share in personal property-liability.
- 6Allstate completed the sale of its life and annuity businesses (Allstate Life Insurance Company and affiliates) in Q4 2021, recognizing a significant loss on disposition in Q1 2021 ($3.8 billion after-tax for the nine months ended Sep 30, 2021).
- 7Allstate shareholders' equity decreased to $26.73 billion as of September 30, 2021, compared to $30.22 billion as of December 31, 2020, due to share repurchases, dividends, and unrealized capital losses.