Allstate Earnings Cheat Sheet: The Good Hands of a Profitable Quarter

S&P 500 (NYSE:SPY) component Allstate Corporation (NYSE:ALL) reported net income above Wall Street’s expectations for the first quarter. The Allstate Corporation provides insurance on personal property as well as offering casualty insurance, life insurance, retirement and investment products.

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Allstate Earnings Cheat Sheet for the First Quarter

Results: Net income for Allstate Corporation rose to $519 million (97 cents/share) vs. $120 million (22 cents/share) in the same quarter a year earlier. A more than fourfold rise from the year earlier quarter.

Revenue: Rose 4.5% to $8.1 billion YoY.

Actual vs. Wall St. Expectations: ALL beat the mean analyst estimate of 68 cents/share. Estimates ranged from 49 cents per share to $1.11 per share.

Quoting Management: “Allstate made continued progress on improving returns and also benefited from lower catastrophe losses in the first quarter,” said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation. “Operating income improved by 32.5% to $497 million and the underlying combined ratio for Property-Liability of 89.9 was within our 88 to 91 outlook range for the year. Our marketing programs continue to be successful with an 11.9% increase in standard auto new business, although policies in force declined by 0.7% when compared to the prior year first quarter as we took actions to improve profitability in several large states.”

Competitors to Watch: Horace Mann Educators Corp. (NYSE:HMN), The Progressive Corp. (NYSE:PGR), Safety Insurance Group, Inc. (NASDAQ:SAFT), 21st Century Holding Co. (NASDAQ:TCHC), The Travelers Companies, Inc. (NYSE:TRV), Hilltop Holdings Inc. (NYSE:HTH), Hallmark Financial Services, Inc. (NASDAQ:HALL), Tower Group, Inc. (NASDAQ:TWGP), Erie Indemnity Company (NASDAQ:ERIE), American International Group (NYSE:AIG) and Gainsco, Inc. (AMEX:GAN).

Today’s Performance: Shares of ALL are up over 3% in after hours trading.


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