Allstate Corporation’s (ALL - Free Report) second-quarter 2019 earnings of $2.18 per share beat the Zacks Consensus Estimate by 47.3% and were up 15% year over year, led by premium growth, partly offset by catastrophe losses.
Revenues of $10.8 billion outpaced the Zacks Consensus Estimate by 18.9%. The top line was up 7% year over year, driven by an increase in investment income (up 14.3% year over year).
Total expenses increased 7.5% year over year to $10 billion on higher property and casualty insurance claims, life contract benefits, pension and other post retirement costs.
The company incurred catastrophe loss of $1.07 billion, up 18% year over year.
Total policies in force as of Jun 30, 2019 were 129.8 million, up 46.8% year over year.
Net investment income of $942 million increased 14.3% year over year.
The Allstate Corporation Price, Consensus and EPS Surprise
Solid Segmental Performance
Property-Liability insurance premiums of $9 billion increased 5.9% year over year due to rise in premium in Auto, Homeowners as well as Commercial line insurance. The segment’s underwriting income suffered from $1.1 billion, up 18% year over year due to catastrophe losses incurred in the reported quarter.
Service Business’ premiums were $350 million, up 18% year over year. This upside was primarily driven by higher contribution from the company’s Square Trade and Dealer Services business, up 33% and 16.5%, respectively.
Allstate Life’s premiums were $157 million, up 5.3% year over year, driven by higher contribution from traditional life insurance products. Allstate Benefits’ premiums remained almost unchanged at $256 million.
Capital Position (as of Jun 30, 2019)
Total shareholders’ equity was $24.5 billion, up 15% year over year.
Total assets were $118.4 billion, up 5.5% from 2018 year-end level.
The company’s financial leverage position improved with a 150 basis point reduction in debt-to-equity ratio to 27.9%.
Adjusted return on equity of 17% was up 80 basis point year over year.
Share Buyback and Dividend Buyback
The company returned $664 million to common shareholders in the second quarter of 2019 through a combination of $166 million in common stock dividends and $498 million of share repurchases, which in the settlement of the accelerated share purchase program.
Zacks Rank and Performance by Other Players
Allstate carries a Zacks Rank #3 (Hold). Some other insurers that have recently reported earnings this season are W.R. Berkley Corp. (WRB - Free Report) , The Progressive Corp. (PGR - Free Report) and Chubb Ltd. (CB - Free Report) , each beating their estimate by 28.13%,16.08% and 0.8%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Allstate Corporation’s (ALL - Free Report) second-quarter 2019 earnings of $2.18 per share beat the Zacks Consensus Estimate by 47.3% and were up 15% year over year, led by premium growth, partly offset by catastrophe losses.
Revenues of $10.8 billion outpaced the Zacks Consensus Estimate by 18.9%. The top line was up 7% year over year, driven by an increase in investment income (up 14.3% year over year).
Total expenses increased 7.5% year over year to $10 billion on higher property and casualty insurance claims, life contract benefits, pension and other post retirement costs.
The company incurred catastrophe loss of $1.07 billion, up 18% year over year.
Total policies in force as of Jun 30, 2019 were 129.8 million, up 46.8% year over year.
Net investment income of $942 million increased 14.3% year over year.
The Allstate Corporation Price, Consensus and EPS Surprise
Solid Segmental Performance
Property-Liability insurance premiums of $9 billion increased 5.9% year over year due to rise in premium in Auto, Homeowners as well as Commercial line insurance. The segment’s underwriting income suffered from $1.1 billion, up 18% year over year due to catastrophe losses incurred in the reported quarter.
Service Business’ premiums were $350 million, up 18% year over year. This upside was primarily driven by higher contribution from the company’s Square Trade and Dealer Services business, up 33% and 16.5%, respectively.
Allstate Life’s premiums were $157 million, up 5.3% year over year, driven by higher contribution from traditional life insurance products. Allstate Benefits’ premiums remained almost unchanged at $256 million.
Capital Position (as of Jun 30, 2019)
Total shareholders’ equity was $24.5 billion, up 15% year over year.
Total assets were $118.4 billion, up 5.5% from 2018 year-end level.
The company’s financial leverage position improved with a 150 basis point reduction in debt-to-equity ratio to 27.9%.
Adjusted return on equity of 17% was up 80 basis point year over year.
Share Buyback and Dividend Buyback
The company returned $664 million to common shareholders in the second quarter of 2019 through a combination of $166 million in common stock dividends and $498 million of share repurchases, which in the settlement of the accelerated share purchase program.
Zacks Rank and Performance by Other Players
Allstate carries a Zacks Rank #3 (Hold). Some other insurers that have recently reported earnings this season are W.R. Berkley Corp. (WRB - Free Report) , The Progressive Corp. (PGR - Free Report) and Chubb Ltd. (CB - Free Report) , each beating their estimate by 28.13%,16.08% and 0.8%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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