Allstate Corporation’s (ALL - Free Report) first-quarter 2019 earnings of $2.3 per share beat the Zacks Consensus Estimate by 0.44% but decreased 25.3% on a year-over-year basis.
The decrease was mainly due to heavy catastrophe loss. Adjusted revenues came in at $10.33 billion, outpacing the Zacks Consensus Estimate by 15.22%. The top line was up 12.5% year over year, driven by an increase in property and casualty insurance premium (up 6.9% year over year).
In the quarter under review, total expenses increased 10.1% year over year to $9.37 billion on higher property and casualty insurance claims, and operating cost and expenses.
The company incurred catastrophe loss of $680 million, which was 88.4% higher year over year.
Total policies in force as of Mar 31, 2019 were 123.5 million, up 44.3% year over year.
Net investment income of $648 million declined 17.6% year over year due to lower performance-based income.
The Allstate Corporation Price and EPS Surprise
Solid Segmental Performance
Property-Liability insurance premiums of $8.8 billion increased 6.2% year over year due to rise in premium in auto, homeowners and Ensurance brand.
The segment’s underwriting income of $700 million was down 30.3% year over year due to catastrophe losses incurred in the reported quarter.
Service Businesses’ total revenues were $392 million, up 25% year over year. This upside was primarily driven by higher revenues (up 34.4%) from the company’s Square Trade business, followed by revenue growth of 14.3% and 11.5% respectively, in Arity and Allstate Dealer Services.
Allstate Life’s total revenues of $486 million increased 3% year over year, driven by growth in premiums and net investment income.
Allstate Benefits’ total revenues grew 2.6% year over year to $311 million, driven by growth in premium and gains from realized capital losses.
Allstate Annuities’ revenues of $349 million grew 32% year over year mainly due to high realized capital gains.
Capital Position (As of Mar 31, 2019)
Total shareholders’ equity was $20.5 billion, down 1.4% year over year.
Total assets were $115.8 billion, up 2.3% year over year.
Long-term debt of $6.45 billion decreased 5.8% year over year.
Ratio of debt-to-equity was 27.6%, down 180 basis points year over year.
Adjusted return on equity of 13.5% declined from 16.2% in the year-ago quarter.
Zacks Rank and Performance of Other Insurers
Allstate carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other players from the insurance industry that have reported first-quarter earnings so far, the bottom line of Torchmark Corp. , RLI Corp. (RLI - Free Report) and W.R. Berkley Corp. (WRB - Free Report) beat the respective Zacks Consensus Estimate by 3.14%, 20.3% and 54%.
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Allstate Corporation’s (ALL - Free Report) first-quarter 2019 earnings of $2.3 per share beat the Zacks Consensus Estimate by 0.44% but decreased 25.3% on a year-over-year basis.
The decrease was mainly due to heavy catastrophe loss. Adjusted revenues came in at $10.33 billion, outpacing the Zacks Consensus Estimate by 15.22%. The top line was up 12.5% year over year, driven by an increase in property and casualty insurance premium (up 6.9% year over year).
In the quarter under review, total expenses increased 10.1% year over year to $9.37 billion on higher property and casualty insurance claims, and operating cost and expenses.
The company incurred catastrophe loss of $680 million, which was 88.4% higher year over year.
Total policies in force as of Mar 31, 2019 were 123.5 million, up 44.3% year over year.
Net investment income of $648 million declined 17.6% year over year due to lower performance-based income.
The Allstate Corporation Price and EPS Surprise
Solid Segmental Performance
Property-Liability insurance premiums of $8.8 billion increased 6.2% year over year due to rise in premium in auto, homeowners and Ensurance brand.
The segment’s underwriting income of $700 million was down 30.3% year over year due to catastrophe losses incurred in the reported quarter.
Service Businesses’ total revenues were $392 million, up 25% year over year. This upside was primarily driven by higher revenues (up 34.4%) from the company’s Square Trade business, followed by revenue growth of 14.3% and 11.5% respectively, in Arity and Allstate Dealer Services.
Allstate Life’s total revenues of $486 million increased 3% year over year, driven by growth in premiums and net investment income.
Allstate Benefits’ total revenues grew 2.6% year over year to $311 million, driven by growth in premium and gains from realized capital losses.
Allstate Annuities’ revenues of $349 million grew 32% year over year mainly due to high realized capital gains.
Capital Position (As of Mar 31, 2019)
Total shareholders’ equity was $20.5 billion, down 1.4% year over year.
Total assets were $115.8 billion, up 2.3% year over year.
Long-term debt of $6.45 billion decreased 5.8% year over year.
Ratio of debt-to-equity was 27.6%, down 180 basis points year over year.
Adjusted return on equity of 13.5% declined from 16.2% in the year-ago quarter.
Zacks Rank and Performance of Other Insurers
Allstate carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other players from the insurance industry that have reported first-quarter earnings so far, the bottom line of Torchmark Corp. , RLI Corp. (RLI - Free Report) and W.R. Berkley Corp. (WRB - Free Report) beat the respective Zacks Consensus Estimate by 3.14%, 20.3% and 54%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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