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Allstate (ALL) Q1 Earnings Beat Estimates, Revenues Miss
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Allstate Corporation’s (ALL - Free Report) first-quarter 2020 earnings of $3.54 per share beat the Zacks Consensus Estimate by 13.46% and also soared 53.9% year over year, led by improved premiums and policies in force.
Revenues of $10.1 billion missed the Zacks Consensus Estimate by 1.98% and also declined 8.3% year over year due to weak net investment income, partly offset by higher premiums.
Total expenses inched up 0.5% year over year to $9.4 billion due to $210-million Shelter-in-Pay expense.
The company incurred a catastrophe loss of $211 million, down 69% year over year.
Total policies in force as of Mar 31, 2020 were 153.7 million, up 24.1% year over year.
Net investment income of $421 million dropped 35% year over year.
The Allstate Corporation Price, Consensus and EPS Surprise
Property-Liability insurance premiums of $8.88 billion increased 4.4% year over year, driven by a solid contribution from Allstate brand auto and Allstate brand homeowners, partly offset by lower premiums from Ensurance and Encompass brands. The segment’s underwriting income of $1.35 billion was up 91% year over year.
Service Business’ revenues were $430 million, up 9.7% year over year owing to higher contributions from Protection Plans, Dealer Services, Arity and Indentity Protection businesses, partly offset by soft revenues from Roadside Servcies.
Allstate Life, Benefits and Annuities’ total premium and contract charges were $617 million, down 1.8% year over year due to dwindled contribution from Allstate Life, Benefits as well as Annuities.
Capital Position (as Mar 31, 2020)
Total shareholders’ equity was $24.2 billion, down 7% from the level as of Dec 31, 2019.
Total assets were $116.1 billion, down 3.2% from the level on Dec 31, 2019.
The company’s debt-to-equity ratio increased to 21.5 from 20.3 as of Dec 31, 2019.
Adjusted return-on-equity of 18.5% was up 470 basis point year over year.
Book value per share was $69.67, up 9.6% year over year.
Among other players in the insurance space that already reported first-quarter earnings, the bottom-line results of Principal Financial Group (PFG - Free Report) , The Progressive Corp. (PGR - Free Report) and The Travelers Companies (TRV - Free Report) missed respective estimates by 3.36%, 19.3% and 9.03%.
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Allstate (ALL) Q1 Earnings Beat Estimates, Revenues Miss
Allstate Corporation’s (ALL - Free Report) first-quarter 2020 earnings of $3.54 per share beat the Zacks Consensus Estimate by 13.46% and also soared 53.9% year over year, led by improved premiums and policies in force.
Revenues of $10.1 billion missed the Zacks Consensus Estimate by 1.98% and also declined 8.3% year over year due to weak net investment income, partly offset by higher premiums.
Total expenses inched up 0.5% year over year to $9.4 billion due to $210-million Shelter-in-Pay expense.
The company incurred a catastrophe loss of $211 million, down 69% year over year.
Total policies in force as of Mar 31, 2020 were 153.7 million, up 24.1% year over year.
Net investment income of $421 million dropped 35% year over year.
The Allstate Corporation Price, Consensus and EPS Surprise
The Allstate Corporation price-consensus-eps-surprise-chart | The Allstate Corporation Quote
Solid Segmental Performance
Property-Liability insurance premiums of $8.88 billion increased 4.4% year over year, driven by a solid contribution from Allstate brand auto and Allstate brand homeowners, partly offset by lower premiums from Ensurance and Encompass brands. The segment’s underwriting income of $1.35 billion was up 91% year over year.
Service Business’ revenues were $430 million, up 9.7% year over year owing to higher contributions from Protection Plans, Dealer Services, Arity and Indentity Protection businesses, partly offset by soft revenues from Roadside Servcies.
Allstate Life, Benefits and Annuities’ total premium and contract charges were $617 million, down 1.8% year over year due to dwindled contribution from Allstate Life, Benefits as well as Annuities.
Capital Position (as Mar 31, 2020)
Total shareholders’ equity was $24.2 billion, down 7% from the level as of Dec 31, 2019.
Total assets were $116.1 billion, down 3.2% from the level on Dec 31, 2019.
The company’s debt-to-equity ratio increased to 21.5 from 20.3 as of Dec 31, 2019.
Adjusted return-on-equity of 18.5% was up 470 basis point year over year.
Book value per share was $69.67, up 9.6% year over year.
Zacks Rank and Performance of Other Players
Allstate carries a Zacks Rank #2 (Buy). 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 first-quarter earnings, the bottom-line results of Principal Financial Group (PFG - Free Report) , The Progressive Corp. (PGR - Free Report) and The Travelers Companies (TRV - Free Report) missed respective estimates by 3.36%, 19.3% and 9.03%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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