Summary
Allstate Corporation (ALL) reported a net loss attributable to common shareholders of $1.04 billion ($3.81 per diluted share) for the second quarter of 2022, a significant decrease from a net income of $1.63 billion ($5.26 per diluted share) in the same period of 2021. This downturn was primarily driven by substantial increases in property and casualty insurance claims and claims expense, and unfavorable changes in investment valuations, including significant net losses on investments and derivatives. Total revenues saw a slight decrease, impacted by lower net investment income and investment gains. For the first six months of 2022, the company reported a net loss attributable to common shareholders of $359 million ($1.49 per diluted share), compared to a net income of $244 million ($0.61 per diluted share) in the first six months of 2021. While property and casualty insurance premiums earned showed an increase, this was more than offset by higher claims expenses and unfavorable investment results. The company's Allstate Protection segment experienced a significant underwriting loss, reflecting increased non-catastrophe losses and unfavorable reserve reestimates, particularly in auto insurance. Management is implementing a plan to improve profitability, including rate increases and expense reductions.
Financial Highlights
37 data points| Revenue | $12.22B |
| Operating Income | -$353.00M |
| Interest Expense | $83.00M |
| Net Income | -$1.01B |
| EPS (Basic) | $-3.80 |
| EPS (Diluted) | $-3.80 |
| Shares Outstanding (Basic) | 273.80M |
| Shares Outstanding (Diluted) | 273.80M |
Key Highlights
- 1Net loss attributable to common shareholders of $1.04 billion in Q2 2022, a reversal from a $1.60 billion net income in Q2 2021.
- 2Total revenues decreased slightly to $12.22 billion in Q2 2022 from $12.65 billion in Q2 2021.
- 3Property and Casualty insurance premiums earned increased by 8.8% to $11.36 billion in Q2 2022.
- 4Property and Casualty insurance claims and claims expense significantly increased by 30% to $9.37 billion in Q2 2022.
- 5Allstate Protection segment reported an underwriting loss of $861 million in Q2 2022, compared to an underwriting income of $431 million in Q2 2021.
- 6Net investment income decreased by 42.4% to $562 million in Q2 2022.
- 7Allstate shareholders' equity decreased to $20.12 billion as of June 30, 2022, down from $25.18 billion as of December 31, 2021, impacted by net unrealized capital losses and share repurchases.