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Allstate's (ALL) Q4 Earnings and Revenues Beat Estimates

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The Allstate Corporation’s (ALL - Free Report) fourth-quarter 2020 earnings of $5.87 per share beat the Zacks Consensus Estimate by 53.7% and also increased 87.5% year over year, led by growth in revenues.

Further, revenues of $11.3 billion topped the Zacks Consensus Estimate by 4.3% and also improved 5.3% year over year, reflecting a strong performance-based investment income

Total expenses declined 5.8% year over year to $8.7 billion, mainly due to lower claims.

Total policies in force as of Dec 31, 2020 were 175.9 million, up 20.5% year over year.

Net investment income of $1.19 million grew 73% year over year.

The company incurred $424 million of catastrophe losses, up 43.7% year over year.

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

The Allstate Corporation price-consensus-eps-surprise-chart | The Allstate Corporation Quote

Solid Segmental Performances

Property-Liability insurance premiums of $8.61 billion decreased 1.5% year over year due to lower premium written in Allstate brand auto and Encompass, partly offset by premium growth in Allstate Brand Homeowners subsegment. The segment’s underwriting income of $1.42 billion was up 42% year over year.

Protection Service Business (which was earlier known as Service business) revenues of $518 million were up 19.4% 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 $603 million, down 3.8% year over year due to lower contributions from Allstate Life and Benefits businesses.

Capital Position (as of Dec 31, 2020)

Total shareholders’ equity was $30.2 billion, up 16.1% from the level as of Dec 31, 2019.

Total assets were $126 billion, up 5% from the level on Dec 31, 2019.
Adjusted return-on-equity of 19.8% was up 290 basis points year over year.

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.

Other stocks in the insurance space, namely Aflac Inc. (AFL - Free Report) , Principal Financial Group, Inc. (PFG - Free Report) and MetLife Inc. (MET - Free Report) surpassed on fourth-quarter earnings by 2.88%, 3.5% and 32.68%, respectively.

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