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Allstate's (ALL) Q3 Earnings and Revenues Beat Estimates

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Allstate Corporation’s (ALL - Free Report) third-quarter 2020 earnings of $2.94 per share beat the Zacks Consensus Estimate by 66.1% and also increased 3.5% year over year, led by improved premiums.

Moreover, revenues of $11.1 billion topped the Zacks Consensus Estimate by 2.52% and improved 1.7% year over year as well on higher premiums, partly offset by a weak net investment income.

Total expenses rose 1.5% year over year to $10 billion, mainly due to restructuring charges.

Total policies in force as of Sep 30, 2020 were 172.84 million, up 27.1% year over year.

Net investment income of $832 million dropped 5.5% year over year.
The company incurred $990 million of catastrophe losses, up 94.1% year over year.

The Allstate Corporation Price, Consensus and EPS Surprise The Allstate Corporation Price, Consensus and EPS Surprise

Solid Segmental Performances

Property-Liability insurance premiums of $9.4 billion inched up 0.9% year over year, driven by premium and policy growth in Allstate Brand Homeowners subsegment. The segment’s underwriting income of $753 million was up 2.2% year over year.

Service Business’ revenues of $498 million were up 19.1% year over year owing to higher contributions from Protection Plans, Dealer Services and Allstate Identity Protection, partly offset by a decline in revenues from Roadside Services and Arity business.

Allstate Life, Benefits and Annuities’ total premium and contract charges were $620 million, down 0.8% year over year owing to lower contributions from Allstate Benefits.

Capital Position (as of Sep 30, 2020)

Total shareholders’ equity was $27.26 billion, up 4.8% from the level as of Dec 31, 2019.

Total assets were $122.75 billion, up 2.3% from the level on Dec 31, 2019.
Adjusted return-on-equity of 17.7% was up 350 basis points year over year.

Share Buyback and Dividend Payment

The company returned $967 million cash to its shareholders through $169 million as dividends and the repurchase of $798 million worth of shares.

Zacks Rank and Performance of Other Players

Allstate carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Among other players in the insurance space that already reported third-quarter earnings, the bottom-line results of Principal Financial Group (PFG - Free Report) , American Financial Group Inc. (AFG - Free Report) and MetLife Inc. (MET - Free Report) beat the respective Zacks Consensus Estimate by 10.65%, 58.06% and 4.85% each.

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