Allstate (ALL) Tops Q1 EPS by $2.23

Allstate (NYSE: ALL) reported Q1 EPS of $6.11, $2.23 better than the analyst estimate of $3.88. Revenue for the quarter came in at $12.45 billion versus the consensus estimate of $9.33 billion.

“Allstate increased our customer base and generated excellent returns this quarter, reflecting strong operating results, the acquisition of National General and divestitures of the life and annuity businesses,” said Tom Wilson, Chair, President and CEO of The Allstate Corporation. “Personal property-liability premiums earned and policies in force increased by 11.4% and 12.1% from the prior year, respectively. Revenues from the Protection Services segment increased by 21.6% from 2020, reflecting continued expansion of Allstate Protection Plans. The announced divestitures of the life and annuity businesses generated a $4.0 billion loss, which resulted in a net loss for the quarter of $1.4 billion. Adjusted net income*, however, was $1.9 billion, or $6.11 per common share, for the quarter, representing a 23.2% return on equity over the last twelve months.

“Our long-term approach to investing, reinsurance and building a digital insurer is creating shareholder value and positively impacted results this quarter,” continued Wilson. “Total investment income increased by 188% ($708 million) as performance-based income rebounded from last year’s first quarter loss. Gross catastrophe losses of $1.67 billion for the quarter were nearly eight times greater than 2020 but were offset by $1.08 billion of reinsurance and subrogation recoveries. The Transformative Growth plan to increase property-liability market share is also progressing, with higher new business sales in the Allstate brand, driven by the direct channel. Last year’s cost reductions also enabled us to improve customer value while achieving an 83.3 combined ratio for the quarter,” concluded Wilson.

For earnings history and earnings-related data on Allstate (ALL) click here.

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