Early Access

10-QPeriod: Q1 FY2022

ALLSTATE CORP Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 4, 2022For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

The Allstate Corporation (ALL) reported a net income of $630 million for the first quarter of 2022, a significant improvement from a net loss of $1.41 billion in the same period of 2021. This turnaround was primarily driven by the absence of a substantial loss from discontinued operations in the prior year, though it was partially offset by lower underwriting income in the Allstate Protection segment and decreased investment gains. Total revenues saw a slight decrease of 0.9% to $12.34 billion, mainly due to a swing from net investment gains in the prior year to net losses in the current quarter, along with lower net investment income. However, property and casualty insurance premiums earned increased by 6.5%, indicating underlying growth in the core insurance business. The company also highlighted a reduction in catastrophe losses compared to the prior year, though non-catastrophe losses, particularly in auto insurance, increased. The balance sheet shows a decrease in total investments and shareholders' equity, impacted by market valuations and share repurchases.

Financial Statements
Beta
Revenue$12.34B
Operating Income$660.00M
Interest Expense$83.00M
Net Income$660.00M
EPS (Basic)$2.28
EPS (Diluted)$2.25
Shares Outstanding (Basic)278.10M
Shares Outstanding (Diluted)281.80M

Key Highlights

  • 1Net income of $630 million in Q1 2022, compared to a net loss of $1.41 billion in Q1 2021, primarily due to the absence of discontinued operations losses.
  • 2Total revenues decreased slightly by 0.9% to $12.34 billion, driven by lower investment gains and net investment income, partially offset by a 6.5% increase in property and casualty insurance premiums.
  • 3Allstate Protection segment underwriting income decreased significantly to $282 million from $1.66 billion year-over-year, mainly due to higher auto non-catastrophe losses.
  • 4Catastrophe losses were $462 million in Q1 2022, down from $590 million in Q1 2021.
  • 5Investments totaled $61.77 billion as of March 31, 2022, a decrease from $64.70 billion at the end of 2021, reflecting market valuations and share repurchases.
  • 6Allstate shareholders' equity was $23.21 billion as of March 31, 2022, down from $25.18 billion at the end of 2021, impacted by unrealized capital losses and share repurchases.
  • 7The company repurchased $794 million of common stock during the first quarter of 2022 as part of its ongoing $5 billion repurchase program.

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