Allstate Delivers Strong Performance as Economic Activity Increases
New share repurchase program of $5 billion
NORTHBROOK, Ill.–(BUSINESS WIRE)–The Allstate Corporation (NYSE: ALL) today reported financial results for the second quarter of 2021.
The Allstate Corporation Consolidated Highlights | ||||||||||||||||||
| Three months ended June 30, |
| Six months ended June 30, | |||||||||||||||
($ in millions, except per share data and ratios) | 2021 | 2020 | % / pts |
| 2021 | 2020 | % / pts | |||||||||||
Consolidated revenues | $ | 12,646 |
| $ | 10,403 |
| 21.6 |
|
| $ | 25,097 |
| $ | 20,269 |
| 23.8 |
| |
Net income applicable to common shareholders | 1,595 |
| 1,224 |
| 30.3 |
|
| 187 |
| 1,737 |
| (89.2) |
| |||||
per diluted common share | 5.26 |
| 3.86 |
| 36.3 |
|
| 0.61 |
| 5.43 |
| (88.8) |
| |||||
Adjusted net income* | 1,149 |
| 816 |
| 40.8 |
|
| 3,020 |
| 2,018 |
| 49.7 |
| |||||
per diluted common share* | 3.79 |
| 2.58 |
| 46.9 |
|
| 9.90 |
| 6.31 |
| 56.9 |
| |||||
Return on Allstate common shareholders’ equity (trailing twelve months) |
|
|
|
|
| |||||||||||||
Net income applicable to common shareholders |
|
|
|
| 15.3 | % | 18.2 | % | (2.9) |
| ||||||||
Adjusted net income* |
|
|
|
| 23.8 | % | 18.0 | % | 5.8 |
| ||||||||
Book value per common share |
|
|
|
| 86.33 |
| 79.21 |
| 9.0 |
| ||||||||
Property-Liability combined ratio |
|
|
|
|
|
|
| |||||||||||
Recorded | 95.7 |
| 89.8 |
| 5.9 |
|
| 89.5 |
| 87.3 |
| 2.2 |
| |||||
Underlying combined ratio* | 85.7 |
| 76.8 |
| 8.9 |
|
| 81.4 |
| 79.5 |
| 1.9 |
| |||||
Property-Liability insurance premiums earned | 10,009 |
| 8,863 |
| 12.9 |
|
| 19,905 |
| 17,744 |
| 12.2 |
| |||||
Catastrophe losses | 952 |
| 1,186 |
| (19.7) |
|
| 1,542 |
| 1,397 |
| 10.4 |
| |||||
Shelter-in-Place Payback expense | 29 |
| 738 |
| (96.1) |
|
| 29 |
| 948 |
| (96.9) |
| |||||
Total policies in force (in thousands) |
|
|
|
| 189,361 |
| 165,463 |
| 14.4 |
|
* | Measures used in this release that are not based on accounting principles generally accepted in the United States of America (“non-GAAP”) are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the “Definitions of Non-GAAP Measures” section of this document. |
“Allstate has performed exceptionally as the economy rebounds from the pandemic by focusing on execution, innovation and long-term value creation,” said Tom Wilson, Chair, President and CEO of The Allstate Corporation. “Revenues grew 21.6% over the prior year, reflecting execution of a multi-faceted plan to increase growth. The Property-Liability combined ratio of 95.7 was attractive despite an increase in the frequency of auto accidents and $952 million of catastrophe losses. Investment income from the performance-based portfolio increased by $759 million, reflecting our long-term approach to managing risk-adjusted returns. This strong execution resulted in second quarter net income of $1.6 billion. Adjusted net income* was $3.79 per share, representing a return on equity of 23.8% for the last twelve months.
“The Transformative Growth plan and innovation are also creating long-term shareholder value. Property-Liability policies in force and premiums written were 12.1% and 12.5%, respectively, above the prior year due to expansion of auto insurance sold through independent agents with the National General acquisition. Policies in force through Allstate’s direct and agent operations were flat as a 6.7% increase in new business, due to improved auto insurance pricing and increased advertising, was offset by lower customer retention reflecting pandemic-related customer support in the prior year. Telematics innovation has resulted in rapid growth of pay-per-mile auto insurance and Arity’s expansion into marketing services. The new $5 billion share repurchase program that was approved today will help maintain a top 15% ranking of cash returns to shareholders among S&P 500 companies,” concluded Wilson.
Second Quarter 2021 Results
- Total revenues of $12.6 billion in the second quarter of 2021 increased 21.6% compared to the prior year quarter, primarily reflecting higher earned premiums from the acquisition of National General and increased net investment income. Higher revenues from Protection Services, driven by the continued expansion of Allstate Protection Plans, also contributed to revenue growth in the quarter.
- Net income applicable to common shareholders increased to $1.6 billion in the second quarter of 2021, compared to net income of $1.2 billion in the second quarter of 2020, primarily driven by higher performance-based investment income results.
- Adjusted net income* of $1.1 billion, or $3.79 per diluted share, increased $333 million compared to the prior year quarter. The increase reflects higher net investment income and higher earned premiums from the acquisition of National General and lower Shelter-in-Place Payback expense, partially offset by higher non-catastrophe losses. The second quarter of 2020 was significantly impacted by the low level of auto accident frequency experienced due to the pandemic.
Property-Liability Results | ||||||||||||||||
| Three months ended June 30, |
| Six months ended June 30, | |||||||||||||
($ in millions, except ratios) | 2021 | 2020 | % / pts |
| 2021 | 2020 | % / pts | |||||||||
Premiums written | $ | 10,323 |
| $ | 9,172 |
| 12.5 | % |
| 20,091 |
| 17,764 |
| 13.1 | % | |
Allstate Brand | 9,008 |
| 8,909 |
| 1.1 |
|
| 17,429 |
| 17,279 |
| 0.9 |
| |||
National General | 1,315 |
| 263 |
| NM |
| 2,662 |
| 485 |
| NM | |||||
|
|
|
|
|
|
|
| |||||||||
Underwriting income | 429 |
| 902 |
| (52.4 | ) |
| 2,086 |
| 2,250 |
| (7.3 | ) | |||
Allstate Brand | 414 |
| 899 |
| (53.9 | ) |
| 1,929 |
| 2,235 |
| (13.7 | ) | |||
National General | 15 |
| 6 |
| NM |
| 153 |
| 20 |
| NM | |||||
|
|
|
|
|
|
|
| |||||||||
Recorded combined ratio | 95.7 |
| 89.8 |
| 5.9 |
|
| 89.5 |
| 87.3 |
| 2.2 |
| |||
Allstate Protection auto | 94.3 |
| 83.8 |
| 10.5 |
|
| 87.4 |
| 86.6 |
| 0.8 |
| |||
Allstate Protection homeowners | 100.3 |
| 106.8 |
| (6.5 | ) |
| 94.6 |
| 89.2 |
| 5.4 |
| |||
|
|
|
|
|
|
|
| |||||||||
Underlying combined ratio* | 85.7 |
| 76.8 |
| 8.9 |
|
| 81.4 |
| 79.5 |
| 1.9 |
| |||
Allstate Protection auto | 91.8 |
| 82.4 |
| 9.4 |
|
| 86.0 |
| 85.6 |
| 0.4 |
| |||
Allstate Protection homeowners | 69.5 |
| 60.6 |
| 8.9 |
|
| 68.6 |
| 61.5 |
| 7.1 |
|
NM = not meaningful |
- Property-Liability written premium of $10.3 billion increased 12.5% in the second quarter of 2021 compared to the prior year quarter, primarily driven by the acquisition of National General. The recorded combined ratio of 95.7 generated underwriting income of $429 million, a decrease of $473 million compared to the prior year quarter. Income decreased primarily due to higher non-catastrophe losses in auto and homeowners insurance, which were partially offset by increased premiums related to the acquisition of National General and lower Shelter-in-Place Payback expense.
- The underlying combined ratio* of 85.7 for the second quarter of 2021 was 8.9 points above the prior year quarter, reflecting higher non-catastrophe losses due to increased auto accident frequency and higher incurred auto and homeowners claims severity, partially offset by lower expenses.
- Cost reductions implemented in 2020 and continuing in 2021 provide operational flexibility to improve customer value and invest in growth. The expense ratio of 24.7 decreased 7.1 points compared to the prior year quarter, due to lower Coronavirus-related expenses from Shelter-in-Place Payback and bad debt. This was partially offset by the amortization of purchased intangibles, increased advertising of 0.7 points and restructuring charges of $66 million. Excluding these items, the expense ratio decreased 0.4 points compared to the prior year quarter due to lower operating expenses. Increased claims process efficiency and expanded digital capabilities have also resulted in lower expenses while improving the customer experience.
- Allstate Protection auto insurance net written premium increased 10.1%, and policies in force increased 14.1% compared to the prior year quarter, driven by the acquisition of National General and increased new issued applications. Allstate brand auto net written premiums declined slightly from the prior year quarter as increased new issued applications were offset by lower average premiums. Policies in force increased sequentially for the second consecutive quarter, increasing 161 thousand compared to the end of the first quarter 2021, including 96 thousand from the Allstate brand.
The recorded auto insurance combined ratio of 94.3 in the second quarter of 2021 was 10.5 points above the prior year quarter, and the underlying combined ratio* of 91.8 was 9.4 points above the prior year quarter, primarily due to an increase in the loss ratio, partially offset by a lower expense ratio. The auto loss ratio increase was driven by higher accident frequency as miles driven rebound toward pre-pandemic levels and higher incurred claim severity from inflation and supply chain disruptions.
- Allstate Protection homeowners insurance net written premium grew 19.2%, and policies in force increased 7.5% compared to the second quarter of 2020, due to the acquisition of National General and growth of Allstate brand policies. Allstate brand net written premium increased 6.2% compared to the prior year quarter, driven by higher average premiums and new issued application growth.
The recorded homeowners insurance combined ratio of 100.3 in the second quarter of 2021 was 6.5 points below the second quarter of 2020, primarily driven by lower catastrophe losses and increased premiums earned, partially offset by higher non-catastrophe losses. The underlying combined ratio* of 69.5 was 8.9 points higher than the prior year quarter, reflecting the inclusion of National General’s results, higher non-catastrophe claim frequency and increased severity due to inflation in labor and material costs.
Protection Services Results | |||||||||||||||||||||||
| Three months ended June 30, |
|
| Six months ended June 30, | |||||||||||||||||||
($ in millions) | 2021 | 2020 | % / $ |
|
| 2021 |
| 2020 |
| % / $ | |||||||||||||
Total revenues (1) | $ | 581 |
| $ | 457 |
| 27.1 | % |
| $ | 1,133 |
|
| $ | 911 |
|
| 24.4 | % | ||||
Allstate Protection Plans | 295 |
| 232 |
| 27.2 |
|
| 570 |
|
| 451 |
|
| 26.4 |
| ||||||||
Allstate Dealer Services | 130 |
| 118 |
| 10.2 |
|
| 253 |
|
| 235 |
|
| 7.7 |
| ||||||||
Allstate Roadside | 60 |
| 53 |
| 13.2 |
|
| 119 |
|
| 113 |
|
| 5.3 |
| ||||||||
Arity | 64 |
| 26 |
| 146.2 |
|
| 128 |
|
| 56 |
|
| 128.6 |
| ||||||||
Allstate Identity Protection | 32 |
| 28 |
| 14.3 |
|
| 63 |
|
| 56 |
|
| 12.5 |
| ||||||||
Adjusted net income (loss) | $ | 56 |
| $ | 38 |
| $ | 18 |
|
| $ | 105 |
|
| $ | 75 |
|
| $ | 30 |
| ||
Allstate Protection Plans | 42 |
| 35 |
| 7 |
|
| 87 |
|
| 69 |
|
| 18 |
| ||||||||
Allstate Dealer Services | 10 |
| 8 |
| 2 |
|
| 18 |
|
| 15 |
|
| 3 |
| ||||||||
Allstate Roadside | 2 |
| 2 |
| — |
|
| 6 |
|
| 4 |
|
| 2 |
| ||||||||
Arity | 1 |
| (3 | ) | 4 |
|
| 3 |
|
| (6 | ) |
| 9 |
| ||||||||
Allstate Identity Protection | 1 |
| (4 | ) | 5 |
|
| (9 | ) |
| (7 | ) |
| (2 | ) |
(1) | Excludes realized capital gains and losses |
- Protection Services revenues increased to $581 million in the second quarter of 2021, 27.1% higher than the prior year quarter. Adjusted net income of $56 million increased by $18 million compared to the prior year quarter, due to growth at Allstate Protection Plans and profits at Arity and Allstate Identity Protection.
- Allstate Protection Plans revenue of $295 million increased $63 million, or 27.2%, compared to the prior year quarter, reflecting increased policies in force. Adjusted net income of $42 million in the second quarter of 2021 was $7 million higher than the prior year quarter, driven by profitable growth.
- Allstate Dealer Services revenue of $130 million was 10.2% higher than the second quarter of 2020, driven by increased auto industry sales and the impact of lower volumes in the second quarter of 2020 from shelter-in-place orders. Adjusted net income of $10 million in the second quarter was $2 million higher than the prior year quarter.
- Allstate Roadside revenue of $60 million in the second quarter of 2021 increased 13.2% compared to the prior year quarter, driven by the impact of lower rescue volumes in the second quarter of 2020 from shelter-in-place orders. Adjusted net income of $2 million in the second quarter of 2021 was flat compared to the prior year quarter.
- Arity revenue of $64 million increased $38 million compared to the prior year quarter, primarily driven by the inclusion of Transparent.ly and LeadCloud as a result of the National General acquisition, and increased device sales driven by growth in the Allstate brand Milewise® product. Adjusted net income of $1 million in the second quarter of 2021 improved $4 million compared to the prior year quarter.
- Allstate Identity Protection revenue of $32 million in the second quarter of 2021 increased 14.3% compared to the prior year quarter. Adjusted net income of $1 million in the second quarter of 2021 increased $5 million compared to the prior year quarter.
Allstate Health and Benefits Results | ||||||||||||||
| Three months ended June 30, |
| Six months ended June 30, | |||||||||||
($ in millions) | 2021 | 2020 | % Change |
| 2021 | 2020 | % Change | |||||||
Premiums and contract charges | 447 |
| 263 |
| 70.0 |
|
| 902 |
| 545 |
| 65.5 |
| |
Employer voluntary benefits | 255 |
| 263 |
| (3.0 | ) |
| 518 |
| 545 |
| (5.0 | ) | |
Group health | 87 |
| — |
| NM |
| 170 |
| — |
| NM | |||
Individual accident and health | 105 |
| — |
| NM |
| 214 |
| — |
| NM | |||
Adjusted net income | 62 |
| 5 |
| NM |
| 127 |
| 29 |
| NM |
- Allstate Health and Benefits premiums and contract charges increased 70.0% compared to the prior year quarter, primarily due to the addition of group health and individual accident and health businesses acquired with National General. Adjusted net income of $62 million in the second quarter of 2021 increased by $57 million compared to the second quarter of 2020, primarily due to the addition of National General and the absence of a capitalized software write-off recognized in the prior year quarter.
Allstate Investment Results | |||||||||||||||||||||
| Three months ended June 30, |
|
| Six months ended June 30, | |||||||||||||||||
($ in millions, except ratios) | 2021 | 2020 | $ / pts Change |
|
| 2021 | 2020 | $ / pts Change | |||||||||||||
Net investment income | $ | 974 |
| $ | 220 |
| 754 |
|
| $ | 1,682 |
| $ | 466 |
| 1,216 |
| ||||
Market-based investment income (1) | 355 |
| 352 |
| 3 |
|
| 709 |
| 712 |
| (3 | ) | ||||||||
Performance-based investment income (1) | 649 |
| (110 | ) | 759 |
|
| 1,027 |
| (196 | ) | 1,223 |
| ||||||||
Realized capital gains (losses) | 287 |
| 440 |
| (153 | ) |
| 713 |
| 278 |
| 435 |
| ||||||||
Change in unrealized net capital gains and losses, pre-tax | 324 |
| 1,829 |
| NM |
|
| (1,050 | ) | 704 |
| NM |
| ||||||||
Total return on investment portfolio | 2.6 | % | 4.8 | % | (2.2 | ) |
| 2.4 | % | 2.6 | % | (0.2 | ) | ||||||||
Total return on investment portfolio (trailing twelve months) |
|
|
|
| 6.8 | % | 5.9 | % | 0.9 |
|
(1) | Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses. |
- Allstate Investments $62.6 billion portfolio generated net investment income of $974 million in the second quarter of 2021, an increase of $754 million from the prior year quarter, driven by higher performance-based income.
- Market-based investment income contributed $355 million of investment income in the second quarter of 2021, an increase of $3 million, or 0.9%, compared to the prior year quarter as the impact of low reinvestment rates was mitigated by higher average assets under management and prepayment fee income.
- Performance-based investment income totaled $649 million in the second quarter of 2021, an increase of $759 million compared to the prior year quarter. The increase reflects higher private equity investment valuations and net gains from sales of real estate investments.
- Net realized capital gains were $287 million in the second quarter of 2021, compared to $440 million in the prior year quarter, primarily due to higher equity valuations and gains on sales of fixed income securities and real estate.
- Unrealized net capital gains increased $324 million from the first quarter of 2021 as lower interest rates resulted in higher fixed income valuations.
- Total return on the investment portfolio was 2.6% for the second quarter of 2021 and 6.8% over the trailing twelve-month period.
- Discontinued Operations generated $196 million of income in the second quarter of 2021, primarily driven by higher performance-based income. In the first quarter of 2021, the assets and liabilities of Allstate Life Insurance Company and Allstate Life Insurance Company of New York were reclassified as held for sale with results presented as discontinued operations. This includes $37.0 billion of assets and $32.8 billion of liabilities as of June 30, 2021.
Proactive Capital Management
“Allstate’s focus on current results and long-term value creation is designed to increase shareholder value,” said Mario Rizzo, Chief Financial Officer. “The previously announced divestitures of the life and annuity businesses are on pace to close in 2021, and the acquisition of National General enhances our position in the independent agent channel and increases market share. We returned $807 million to shareholders through dividends and share repurchases in the quarter. The new $5 billion share repurchase program, which is expected to be completed by March 31, 2023, represents 13% of current market capitalization and will be initiated in the third quarter upon completion of the prior $3 billion program. Accelerating growth and increasing Property-Liability market share is also expected to increase shareholder value,” concluded Rizzo.
Visit www.allstateinvestors.com for additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, August 5. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.
Forward-Looking Statements
This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.
THE ALLSTATE CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) | ||||||||
|
|
|
| |||||
($ in millions, except par value data)
| June 30, |
| December 31, | |||||
Assets |
|
|
| |||||
Investments |
|
|
| |||||
Fixed income securities, at fair value (amortized cost, net $41,344 and $40,034) | $ | 42,825 |
|
| $ | 42,565 |
| |
Equity securities, at fair value (cost $2,537 and $2,740) | 3,059 |
|
| 3,168 |
| |||
Mortgage loans, net | 786 |
|
| 746 |
| |||
Limited partnership interests | 7,073 |
|
| 4,563 |
| |||
Short-term, at fair value (amortized cost $5,516 and $6,807) | 5,516 |
|
| 6,807 |
| |||
Other, net | 3,311 |
|
| 1,691 |
| |||
Total investments | 62,570 |
|
| 59,540 |
| |||
Cash | 656 |
|
| 311 |
| |||
Premium installment receivables, net | 8,146 |
|
| 6,463 |
| |||
Deferred policy acquisition costs | 4,374 |
|
| 3,774 |
| |||
Reinsurance and indemnification recoverables, net | 9,497 |
|
| 7,215 |
| |||
Accrued investment income | 350 |
|
| 371 |
| |||
Property and equipment, net | 1,026 |
|
| 1,057 |
| |||
Goodwill | 3,349 |
|
| 2,369 |
| |||
Other assets, net | 5,706 |
|
| 2,756 |
| |||
Assets held for sale | 36,969 |
|
| 42,131 |
| |||
Total assets | $ | 132,643 |
|
| $ | 125,987 |
| |
Liabilities |
|
|
| |||||
Reserve for property and casualty insurance claims and claims expense | $ | 31,637 |
|
| $ | 27,610 |
| |
Reserve for future policy benefits | 1,239 |
|
| 1,028 |
| |||
Contractholder funds | 858 |
|
| 857 |
| |||
Unearned premiums | 18,756 |
|
| 15,946 |
| |||
Claim payments outstanding | 1,040 |
|
| 957 |
| |||
Deferred income taxes | 758 |
|
| 382 |
| |||
Other liabilities and accrued expenses | 9,392 |
|
| 7,840 |
| |||
Long-term debt | 7,996 |
|
| 7,825 |
| |||
Liabilities held for sale | 32,775 |
|
| 33,325 |
| |||
Total liabilities | 104,451 |
|
| 95,770 |
| |||
Equity |
|
|
| |||||
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 81.0 thousand shares issued and outstanding, $2,025 aggregate liquidation preference; $.01 par value, 8 million shares authorized, 200.0 thousand shares issued and outstanding, $200 aggregate liquidation preference for $200 in 2021 | 2,170 |
|
| 1,970 |
| |||
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 297 million and 304 million shares outstanding | 9 |
|
| 9 |
| |||
Additional capital paid-in | 3,668 |
|
| 3,498 |
| |||
Retained income | 52,464 |
|
| 52,767 |
| |||
Treasury stock, at cost (603 million and 596 million shares) | (32,394 | ) |
| (31,331 | ) | |||
Accumulated other comprehensive income: |
|
|
| |||||
Other unrealized net capital gains and losses | 2,726 |
|
| 3,860 |
| |||
Unrealized adjustment to DAC, DSI and insurance reserves | (562 | ) |
| (680 | ) | |||
Total unrealized net capital gains and losses | 2,164 |
|
| 3,180 |
| |||
Unrealized foreign currency translation adjustments | 24 |
|
| (7 | ) | |||
Unamortized pension and other postretirement prior service credit | 102 |
|
| 131 |
| |||
Total accumulated other comprehensive income | 2,290 |
|
| 3,304 |
| |||
Total Allstate shareholders’ equity | 28,207 |
|
| 30,217 |
| |||
Noncontrolling interest | (15 | ) |
| — |
| |||
Total equity | 28,192 |
|
| 30,217 |
| |||
Total liabilities and equity | $ | 132,643 |
|
| $ | 125,987 |
|
THE ALLSTATE CORPORATION AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
|
|
| ||||||||||||||
($ in millions, except per share data) | Three months ended | Six months ended | ||||||||||||||
| 2021 |
| 2020 | 2021 |
| 2020 | ||||||||||
|
|
|
|
|
|
| ||||||||||
Revenues |
|
|
|
|
|
| ||||||||||
Property and casualty insurance premiums | $ | 10,444 |
|
| $ | 9,223 |
| $ | 20,751 |
|
| $ | 18,458 |
| ||
Accident and health insurance premiums and contract charges | 447 |
|
| 263 |
| 902 |
|
| 545 |
| ||||||
Other revenue | 494 |
|
| 257 |
| 1,049 |
|
| 522 |
| ||||||
Net investment income | 974 |
|
| 220 |
| 1,682 |
|
| 466 |
| ||||||
Realized capital gains (losses) | 287 |
|
| 440 |
| 713 |
|
| 278 |
| ||||||
Total revenues | 12,646 |
|
| 10,403 |
| 25,097 |
|
| 20,269 |
| ||||||
|
|
|
|
|
|
| ||||||||||
Costs and expenses |
|
|
|
|
|
| ||||||||||
Property and casualty insurance claims and claims expense | 7,207 |
|
| 5,222 |
| 13,250 |
|
| 10,563 |
| ||||||
Shelter-in-Place Payback expense | 29 |
|
| 738 |
| 29 |
|
| 948 |
| ||||||
Accident and health insurance policy benefits | 244 |
|
| 123 |
| 477 |
|
| 264 |
| ||||||
Interest credited to contractholder funds | 8 |
|
| 9 |
| 17 |
|
| 18 |
| ||||||
Amortization of deferred policy acquisition costs | 1,545 |
|
| 1,344 |
| 3,068 |
|
| 2,709 |
| ||||||
Operating costs and expenses | 1,683 |
|
| 1,394 |
| 3,414 |
|
| 2,732 |
| ||||||
Pension and other postretirement remeasurement (gains) losses | (134 | ) |
| 73 |
| (444 | ) |
| 391 |
| ||||||
Restructuring and related charges | 71 |
|
| 13 |
| 122 |
|
| 17 |
| ||||||
Amortization of purchased intangibles | 105 |
|
| 29 |
| 158 |
|
| 57 |
| ||||||
Interest expense | 91 |
|
| 79 |
| 177 |
|
| 160 |
| ||||||
Total costs and expenses | 10,849 |
|
| 9,024 |
| 20,268 |
|
| 17,859 |
| ||||||
|
|
|
|
|
|
| ||||||||||
Income from operations before income tax expense | 1,797 |
|
| 1,379 |
| 4,829 |
|
| 2,410 |
| ||||||
|
|
|
|
|
|
| ||||||||||
Income tax expense | 362 |
|
| 273 |
| 988 |
|
| 467 |
| ||||||
|
|
|
|
|
|
| ||||||||||
Net income from continuing operations | 1,435 |
|
| 1,106 |
| 3,841 |
|
| 1,943 |
| ||||||
|
|
|
|
|
|
| ||||||||||
Income (loss) from discontinued operations, net of tax | 196 |
|
| 144 |
| (3,597 | ) |
| (144 | ) | ||||||
|
|
|
|
|
|
| ||||||||||
Net income | 1,631 |
|
| 1,250 |
| 244 |
|
| 1,799 |
| ||||||
|
|
|
|
|
|
| ||||||||||
Less: Net income attributable to noncontrolling interest | 6 |
|
| — |
| — |
|
| — |
| ||||||
|
|
|
|
|
|
| ||||||||||
Net income attributable to Allstate | 1,625 |
|
| 1,250 |
| 244 |
|
| 1,799 |
| ||||||
|
|
|
|
|
|
| ||||||||||
Less: Preferred stock dividends | 30 |
|
| 26 |
| 57 |
|
| 62 |
| ||||||
|
|
|
|
|
|
| ||||||||||
Net income applicable to common shareholders | $ | 1,595 |
|
| $ | 1,224 |
| $ | 187 |
|
| $ | 1,737 |
| ||
|
|
|
|
|
|
| ||||||||||
Earnings per common share applicable to common shareholders |
|
|
|
|
|
| ||||||||||
Basic |
|
|
|
|
|
| ||||||||||
Continuing operations | $ | 4.68 |
|
| $ | 3.44 |
| $ | 12.59 |
|
| $ | 5.96 |
| ||
Discontinued operations | 0.66 |
|
| 0.46 |
| (11.97 | ) |
| (0.46 | ) | ||||||
Total | $ | 5.34 |
|
| $ | 3.90 |
| $ | 0.62 |
|
| $ | 5.50 |
| ||
|
|
|
|
|
|
| ||||||||||
Diluted |
|
|
|
|
|
| ||||||||||
Continuing operations | $ | 4.61 |
|
| $ | 3.41 |
| $ | 12.41 |
|
| $ | 5.88 |
| ||
Discontinued operations | 0.65 |
|
| 0.45 |
| (11.80 | ) |
| (0.45 | ) | ||||||
Total | $ | 5.26 |
|
| $ | 3.86 |
| $ | 0.61 |
|
| $ | 5.43 |
| ||
|
|
|
|
|
|
| ||||||||||
Weighted average common shares – Basic | 298.8 |
|
| 313.7 |
| 300.6 |
|
| 315.6 |
| ||||||
Weighted average common shares – Diluted | 303.3 |
|
| 317.0 |
| 304.9 |
|
| 319.8 |
|
Definitions of Non-GAAP Measures
We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Contacts
Rachel Hill
Media Relations
(847) 402-5600
Mark Nogal
Investor Relations
(847) 402-2800