Allstate Car Insurance – End Of Your Hunt For Car Insurance

Car Insurance remnants one of the most serious protection nets that an person can use. Yes, insurance must be thought of as a safety net because the economically catastrophic consequence that can derive from an at blunder mishap are considerable. That’s why, when penetrating for car cover for your new car, you ought to pick Allstate car insurance.

Allstate Car Insurance: The Unimaginable

Because of this insurance, it is exceptionally imperative that all drivers have a inclusive insurance policy that maximizes their coverage. Now, some people may be vaguely put off by such a statement because they will automatically assume that complete robotically convert to expensive. This is simply not accurate as there are quite a number of Allstate Car Insurance options available to those who are on a limited budget or simply do not want to overspend when such an expenditure is not necessary.

Work Out for Allstate Car Insurance Company:

In order to find Allstate Car Assurance, you will need to do a little analytical work. That is to say, you will need to shop around a bit and apply for a variety of speech marks. For those not familiar with insurance quotes, what they involve is you fill out an informational form (almost all are available online these days) from a particular insurance provider and then you will receive a dollar figure on a quote relating to your inquiry. Your target is to get the buck price for the best coverage and that’s just what you’ll get with Allstate car insurance.

Be sure, if you are looking for Allstate Car Indemnity you should not admit a low-priced premium that does not offer ample coverage. This would be a completely self-defeating action.

Lookout for Price Target? Dollar General Corporation (DG), The Allstate Corporation (ALL)

Dollar General Corporation (NYSE:DG) gained 0.48% with the closing price of $81.23. The overall volume in the last trading session was 1.49 million shares.

Company Growth Evolution:

ROI deals with the invested cash in the company and the return the investor realize on that money based on the net profit of the business. Investors who are keeping close eye on the stock of Dollar General Corporation (NYSE:DG) established that the company was able to keep return on investment at 13.44 in the trailing twelve month while Reuters data showed that industry’s average stands at 15.11 and sector’s optimum level is 10.95.

Dollar General Corporation (DG) have shown a high EPS growth of 14.80% in the last 5 years and has earnings rose of 12.30% yoy. Analysts have a mean recommendation of 2.40 on this stock (A rating of less than 2 means buy, “hold” within the 3 range, “sell” within the 4 range, and “strong sell” within the 5 range). The stock appeared $85.07 above its 52-week highs and is down -3.26% for the last five trades. The stock ended last trade at $81.23 a share and the price is up more than 9.67% so far this year. The company maintains price to book ratio of 3.88 vs. an industry average at 4.89. Its sales stood at 8.20% a year on average in the period of last five years. A P/B ratio of less than 1.0 can indicate that a stock is undervalued, while a ratio of greater than 1.0 may indicate that a stock is overvalued.

The Allstate Corporation (NYSE:ALL) ended its day at $94.25 with the rising stream of 0.42% and its total traded volume was 1.98 million shares less than the average volume.

Returns and Valuations for The Allstate Corporation (NYSE:ALL)

The Allstate Corporation (NYSE:ALL), maintained return on investment for the last twelve months at -, higher than what Reuters data shows regarding industry’s average. The average of this ratio is 0.21 for the industry and sector’s best figure appears 0.45. The Allstate Corporation (NYSE:ALL), at its latest closing price of $94.25, it has a price-to-book ratio of 1.72, compared to an industry average at 1.35. A lower P/B ratio could mean that the stock is undervalued. This ratio also gives some idea of whether you’re paying too much for what would be left if the company went bankrupt immediately.

The Allstate Corporation (NYSE:ALL), stock is trading $95.25 above the 52-week high and has displayed a high EPS growth of 25.40% in last 5 years. The 1 year EPS growth rate is -7.60% . Its share price has risen 0.34% in three months and is up 1.04% for the last five trades. The average analysts gave this company a mean recommendation of 2.30.

‘Marvel Universe’ takes over Rosemont’s Allstate Arena

They’re super!

See comic book superheroes and villains onstage when “Marvel Universe Live! Age of Heroes” comes on tour starting Thursday at the Allstate Arena, 6920 N. Mannheim Road, Rosemont. $20-$110; $15-$20 parking. (800) 745-3000 or allstatearena.com. 7 p.m. Thursday and Friday, Nov. 2 and 3; 11 a.m., 3 and 7 p.m. Saturday and Sunday, Nov. 4 and 5

Brad Garrett (

Brad Garrett (“Everybody Loves Raymond,” “Fargo”) performs at the Genesee Theatre in Waukegan on Thursday, Nov. 2.
– Associated Press, 2015


Beloved Brad

Actor and comedian Brad Garrett (“Everybody Loves Raymond,” “Fargo”) performs a standup show on Thursday at the Genesee Theatre, 203 N. Genesee St., Waukegan. $45-$55. (847) 263-6300 or geneseetheatre.com. 7:30 p.m. Thursday, Nov. 2

Sea creatures

The Aquatic Experience Chicago features aquarium fish sales, seminars and even a Sea Lion Splash show this weekend at the Renaissance Hotel and Convention Center, 1551 N. Thoreau Drive, Schaumburg. $99 three-day pass; $35 all-day pass (includes seminars); $10-$12 one-day general admission; $6 kids one-day general admission. (847) 303-4100 or aquaticexperience.org. 11 a.m. to 6 p.m. Friday and Saturday, Nov. 3-4, and 10 a.m. to 4 p.m. Sunday, Nov. 5

Relive 20 years of Lucky Boys Confusion when the West Suburban rock band celebrates the anniversary Friday, Nov. 3, at Joe's Live in Rosemont.

Relive 20 years of Lucky Boys Confusion when the West Suburban rock band celebrates the anniversary Friday, Nov. 3, at Joe’s Live in Rosemont.


Lucky Boys at 20

West suburban-based Lucky Boys Confusion still puts on quite a live show even after 20 years. See for yourself when LBC plays selections from their entire catalog for their 20th anniversary show at Joe’s Live, 5441 Park Place, Rosemont. The show also features Swizzle Tree, The Punch, a one-night-only reunion of Treaty of Paris and many other area acts. $25. (847) 261-0392 or joesliverosemont.com. 7 p.m. Friday, Nov. 3

Lovett & Hiatt together again

Grammy Award winner Lyle Lovett and John Hiatt, a member of the Nashville Songwriters Hall of Fame, bring their incredible combined talent to the stage for “An Acoustic Evening With Lyle Lovett & John Hiatt.” When these two old friends get together, they bring solo performances, duets, harmonies and stories, along with a few laughs, to the Genesee Theatre, 203 N. Genesee St., Waukegan. $45-$97.50. (847) 263-6300 or geneseetheatre.com. 7:30 p.m. Friday, Nov. 3

Ballet Folklorico Quetzalcoatl returns to the Paramount Theatre in Aurora on Friday, Nov. 3.

Ballet Folklorico Quetzalcoatl returns to the Paramount Theatre in Aurora on Friday, Nov. 3.
– Courtesy of Ballet Folklorico Quetzalcoatl


Mexican traditions

Celebrate Mexico’s many folk dance and music traditions when the local Ballet Folklorico Quetzalcoatl performs at the Paramount Theatre, 23 E. Galena Blvd., Aurora. $25-$28; $18-$20 kids 12 and younger. (630) 896-6666 or paramountaurora.com. 8 p.m. Friday, Nov. 3

Family Festival: Diwali

Experience interactive dance performances, art and more when the Art Institute of Chicago hosts the Family Festival: Diwali in its Ryan Learning Center. Guests can create art inspired by Indian traditions and the exhibition “India Modern: The Paintings of M.F. Husain.” Enter at the Art Institute’s Modern Wing entrance at 159 E. Monroe St., Chicago. Free. (312) 857-7161 or artic.edu. 10:30 a.m. to 3 p.m. Saturday, Nov. 4

On a roll

Lake in the Hills hosts its annual Great Pumpkin Roll Saturday at Butch Hagele Beach, 71 Hilltop Drive, Lake in the Hills. Guests can bring their own pumpkins from home and roll them for free, or register for the event, get a pumpkin, enter the contest and win a prize for landing on the lucky pumpkin spot. Preregistration is recommended. Day-of-event registration will be available on a limited, cash-only basis. $8-$10 fee includes one pumpkin and one raffle entry. Operation Gratitude will collect unopened Halloween candy donations for deployed troops. Cards and letters of thanks for the troops also will be accepted. (847) 960-7460 or lith.org. 11:30 a.m. Saturday, Nov. 4

Hops around the clock

Sample beers and ciders from more than 50 breweries at the new Fall Back Brew Fest at the Palatine Family Aquatic Center, 340 E. Palatine Road, Palatine. $40-$50 VIP tickets; $30-$40 general admission; $10 designated driver. Must be 21 or older. (847) 604-0288 or palatinejaycees.org/fall-back-brew-fest. Noon early VIP entry; 1 p.m. Saturday, Nov. 4

Let there be light

Singer Jordan Smith from NBC’s “The Voice” will be the guest performer for the 110th annual Great Tree Lighting in the Walnut Room, on the seventh floor at Macy’s, 111 N. State St., Chicago. The 45-foot-tall holiday tree has more than 2,000 ornaments and an estimated 6,600 lights. Free. macy.com/events. Noon Saturday, Nov. 4

Violin ‘Tributes’

Violinist Jennifer Frautschi is the featured soloist in an Elgin Symphony Orchestra concert featuring the music of Beethoven, Copland and James Stephenson’s recently composed “Tributes Concerto for Violin and Orchestra” this weekend at the Hemmens Cultural Center, 45 Symphony Way, Elgin. $30-$65; $10 students. (847) 888-4000 or elginsymphony.org. 7:30 p.m. Saturday, Nov. 4, and 2:30 p.m. Sunday, Nov. 5

Asylum-seeker

American soprano Patricia Racette stars in a new Chicago Opera Theater co-production of Menotti’s “The Consul.” The timely Pulitzer Prize-winning 1950 opera about a desperate political asylum-seeker takes the stage at the Studebaker Theater, 410 S. Michigan Ave., Chicago. $45-$145. (312) 704-8414 or chicagooperatheater.org. 7:30 p.m. Saturday, Nov. 4

‘Muertos’ music

The Chicago Sinfonietta explores music for mourning and more with the concerts “Regresar/Revisit: A Dia de los Muertos Celebration” at North Central College’s Wentz Concert Hall, 171 E. Chicago Ave., Naperville. $10-$62. (312) 284-1554 or chicagosinfonietta.org. 8 p.m. Saturday, Nov. 4

Trace Adkins performs at the Genesee Theatre in Waukegan on Sunday, Nov. 5.

Trace Adkins performs at the Genesee Theatre in Waukegan on Sunday, Nov. 5.
– Associated Press, 2017


Nashville names

Country music fans won’t want to miss the chance to see Trace Adkins (“Rough & Ready,” “Just Fishin'”) on the same concert bill with Adam Warner (“She’s Got Love,” “Empty”) at the Genesee Theatre, 203 N. Genesee St., Waukegan. $35-$64.50. (847) 263-6300 or geneseetheatre.com. 7:30 p.m. Sunday, Nov. 5

Allstate’s (ALL) Q3 Earnings Beat Estimates, Increase Y/Y

Allstate Corporation ‘s ALL third-quarter 2017 operating earnings per share of $1.60 beat the Zacks Consensus Estimate of 88 cents by 81.8%. Earnings also increased 27% year over year on higher revenues.

Net income applicable to common shareholders was $637 million, up 30% from the prior-year quarter.

Allstate generated total revenues of $9.6 billion in the third quarter. The top line surpassed the Zacks Consensus Estimate by 13.1% and also improved 4.8% year over year. The upside was driven by premium growth and an increase in net investment income.

In the quarter, total expenses increased 2.7% year over year to $8.7 billion.

Segment Update

Property-Liability

Insurance premiums earned amounted to $8.6 billion, up 3.3% year over year. Net income of $604 million increased 25% due to higher premiums earned. The combined ratio of 94.7% improved 80 basis points (bps) from the prior-year quarter due to lower claims and claims expense ratio.

Premiums written by Allstate brand auto rose 3.2% in the quarter. Combined ratio of 94.1% improved 410 bps from the prior-year quarter.

Allstate brand homeowners net written premium increased 2.8%. Combined ratio of 81.3% deteriorated 540 bps from the prior-year quarter.

Allstate brand other personal lines net written premium of $454 million increased 1.6% from the prior-year quarter. Combined ratio of 104.3% deteriorated 1680 basis points, primarily due to higher catastrophe losses.

The Esurance brand recorded net written premium growth of 1.6% from the prior-year quarter due to a lower expense ratio in auto and homeowners insurance. Combined ratio of 104.4% improved 540 bps year over year.

The Encompass brand’s net written premiums declined 9.4% year over year. Combined ratio of 89.2% improved 910 bps from the prior-year quarter driven by improved auto loss costs and lower catastrophes due to limited exposure in areas impacted by the hurricanes.

Allstate Financial

Premium and contract charges of $593 million jumped 4% year over year. Net income of $168 million was 110% higher due to better investment results at Allstate Annuities.

Allstate Life’s premium and contract charges of $316 million increased 2%. Net income of $73 million was 69% higher than the prior-year quarter.

Allstate Benefits’ premium and contract charges of $273 million jumped 6.2%. Net income of $29 million was 16% higher than the prior-year quarter.

Allstate Annuities’ premium and contract charges of $4 million remained flat year over year. Net income of $66 million surged 450%.

Corporate and Others

Revenues generated primarily from net investment income totaled $10 million, down 9% year over year. Net loss of $135 million widened from the prior-year quarter loss of $72 million.

The Allstate Corporation Price, Consensus and EPS Surprise

Allstate Corporation (The) Price, Consensus and EPS Surprise | Allstate Corporation (The) Quote

Capital Position

As of Sep 30, 2017, total shareholders’ equity was $22.1 billion, up 7.55% from year-end 2016.

 Total assets increased to $113.6 billion, up 5% from the end of 2016.

Long-term debt remained flat year over year at $6.3 billion.

For the first nine months of 2017, cash inflow from operating activities totaled $3.2 billion, up 18% year over year.

Stock Repurchase and Dividend Update

Allstate paid $391 million in dividends for the first nine months of 2017.

The board of directors approved a $2 billion worth share repurchase program in August.

Zacks Rank

Allstate currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

Among other insurers that have reported their third-quarter earnings so far, Brown & Brown, Inc. BRO , RLI Corp. RLI and The Progressive Corporation PGR beat their respective Zacks Consensus Estimate.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Hurricane Costs Lower Results at MetLife, Allstate — WSJ

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (November 2, 2017).

Hurricanes reduced the third-quarter results of big insurers MetLife Inc. and Allstate Corp. with their large homeowner and car-insurance businesses, while the rallying stock market helped life insurers industrywide with products tied to market returns.

MetLife’s results, released after Wednesday’s closing bell, are the first following its spinoff in August of much of its U.S. retail life-insurance business into a new company named Brighthouse Financial Inc. Separation-related charges of $1.1 billion drove the company to a quarterly loss of $87 million, versus a profit of $571 million in the year-earlier period.

MetLife also said it would divest its remaining 19% stake in Brighthouse in 2018 in a move that will return all of the capital to shareholders. Based on Brighthouse’s current market capitalization, that position is worth about $1.4 billion. That capital return will be in addition to the $2 billion that the board added to its share buyback program.

Catastrophe-modeling firms have estimated insured losses from hurricanes Harvey, Irma and Maria and two earthquakes in Mexico, which also struck during the quarter, to total $68 billion to $148 billion industrywide.

Allstate’s third-quarter results included $861 million of those costs, a 79% jump from a year earlier. The company touted improved profits in its auto insurance segment and pointed to a significant decline in the frequency of auto accidents, which it said helped offset the big spike in catastrophe losses.

Continue Reading Below

Harvey’s extensive flooding meant an unusually large number of vehicles were damaged, and those costs are covered under many people’s car policies.

MetLife didn’t break out its catastrophe costs but said hurricanes Harvey and Irma were primarily responsible for a 12% decline in operating earnings for its property-casualty unit, to $51 million.

During the quarter, insurers generally benefited from the rallying stock market. Rising share prices help insurers that have blocks of variable annuities on their books. Many of these products guarantee lifetime income streams, and a higher stock market translates into reduced costs for insurers. They also earn more fees from the assets under management.

MetLife spun off much of its variable-annuity business but retains a block of older contracts on its books, while Prudential Financial Inc. continues as a leading seller of the product to consumers.

Prudential Chief Executive John Strangfeld cited “strong earnings across segments and record assets under management and account values” in businesses including asset management and annuities.

Among the results:

Prudential

Net income surged to $2.24 billion, up from $1.83 billion the year before. Its operating income increased to $1.32 billion, or $3.01 a share, from $1.19 billion, or $2.66 a share.

Allstate

Operating income at Allstate jumped 24% to $587 million, or $1.60 a share, from $474 million, or $1.26 a share, a year earlier. That figure easily beat consensus estimates. Revenue inched up 4.8% to $9.66 billion, as property-liability insurance premiums increased 3.2% and net investment income increased 13%.

MetLife

Operating earnings declined 14% to $1.17 billion, or $1.09 a share, from $1.36 billion, or $1.22 a share. It was ahead of analysts’ consensus expectations. Premiums, fees and other revenue increased 9.3% to $12.61 billion.

Operating earnings in its U.S. unit, which includes property-casualty and some other businesses, declined 1.1% to $546 million. At the company’s big business of selling benefits such as life and dental insurance to employers, earnings surged 30%. They were down modestly in many parts of its international business, but Latin American posted a 23% increase.

Brighthouse

In its first report as a public company, Brighthouse posted a net loss of $943 million, or $7.87 a share, tied to a tax expense ahead of its separation. On an operating basis, excluding that expense, earnings were $397 million, or $3.31 a share. Operating earnings improved in its annuities segment but declined in the life division.

Write to Leslie Scism at leslie.scism@wsj.com

(END) Dow Jones Newswires

November 02, 2017 02:47 ET (06:47 GMT)

Allstate’s Auto Insurance Profitability Plan Well Executed

The Allstate Corporation Consolidated Highlights

Three months ended
September 30,

Nine months ended
September 30,

($ in millions, except per share data and ratios)

2017

2016

% / pts

Change

2017

2016

% / pts

Change

Consolidated revenues

$

9,660

$

9,221

4.8

$

28,681

$

27,256

5.2

Net income applicable to common shareholders

637

491

29.7

1,853

950

95.1

per diluted common share

1.74

1.31

32.8

5.02

2.51

100.0

Operating income*

587

474

23.8

1,705

1,031

65.4

per diluted common share*

1.60

1.26

27.0

4.62

2.72

69.9

Return on common shareholders’ equity (trailing twelve months)

Net income applicable to common shareholders

13.5

%

7.4

%

6.1

Operating income*

13.9

%

9.4

%

4.5

Book value per common share

55.69

51.48

8.2

Property-Liability combined ratio

Recorded

94.7

95.5

(0.8)

95.2

98.2

(3.0)

Underlying combined ratio* (excludes 
catastrophes, prior year reserve reestimates and 
amortization of purchased intangibles)

85.4

88.0

(2.6)

85.2

88.0

(2.8)

Catastrophe losses

861

481

79.0

2,635

2,269

16.1

Total policies in force (in thousands)

77,641

43,960

76.6

*

Measures used in this release that are not based on accounting principles generally accepted in the United States of America (“non-GAAP”) are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the “Definitions of Non-GAAP Measures” section of this document.

“Allstate’s focus on achieving balanced operating performance resulted in continued progress on 2017’s operating priorities, including returning auto insurance margins to historical levels,” said Tom Wilson, chairman and chief executive officer of The Allstate Corporation. “Net income was $637 million and operating income* was $587 million, or $1.60 per share, in the third quarter of 2017. Improved profitability in auto insurance reflects the profit improvement actions begun in 2015 and a significant broad-based decrease in the frequency of auto accidents. Allstate brand homeowners insurance also generated strong profitability, with a recorded combined ratio of 90.7 for the first nine months of 2017, despite $1.6 billion of catastrophe losses. Investment income increased in both the market-based and performance-based portfolios. As a result, Allstate Financial operating income rose to $157 million in the quarter. Operating income return on equity* increased to 13.9% for the twelve months ended September 30, 2017.

“We continued to deliver on all five 2017 operating priorities, which focus on both near-term performance and long-term value creation. Better serving customers remains a top growth priority, and the net promoter score measure has improved in many of our businesses this year. Total policies in force increased to 78 million through the third quarter, largely due to growth at SquareTrade and Allstate Benefits that was partially offset by reductions in the property-liability businesses. Improvements in Allstate brand auto insurance retention and new issued applications mitigated some of the impacts from the profit improvement programs across the three underwritten property-liability brands. Progress was also made on building long-term growth platforms, including expanding Arity’s connected car strategy,” concluded Wilson.

Operating Results: Third Quarter 2017

  • Total revenue of $9.7 billion in the third quarter of 2017 increased 4.8% compared to the prior year quarter.
    • Property-Liability insurance premiums increased 3.2%
    • Allstate Financial premiums and contract charges increased 3.9%
    • Net investment income increased 12.7%
    • Realized capital gains were $103 million compared to $33 million in the prior year quarter
  • Net income applicable to common shareholders was $637 million, or $1.74 per diluted share, in the third quarter of 2017, compared to $491 million, or $1.31 per diluted share, in the third quarter of 2016. Operating income* was $587 million in the third quarter of 2017, compared to $474 million in the third quarter of 2016.
  • Property-Liability underwriting income of $429 million was $74 million above the prior year quarter, due to higher premiums, a broad-based decline in the frequency of auto accidents and favorable prior year reserve releases. These improvements were partially offset by elevated catastrophe losses related to Hurricanes Harvey and Irma.
    • The underlying combined ratios* of 85.4 for the third quarter and 85.2 for the first nine months of 2017 were significantly lower than the prior year periods, reflecting improvement in the auto underlying combined ratio across all three underwritten brands. The full year result for 2017 is expected to be below the lower end of the annual outlook range of 87-89(1).
    • Non-catastrophe prior year reserve releases of $128 million in the third quarter of 2017 included Allstate Protection releases of $216 million, primarily driven by Allstate brand auto injury coverages. This was partially offset by strengthening of $88 million in the Discontinued Lines and Coverages segment, primarily due to our annual asbestos and environmental reserve review.

Property-Liability Results

Three months ended
September 30,

Nine months ended
September 30,

(% to earned premiums)

2017

2016

pts

Change

2017

2016

pts

Change

Recorded Combined Ratio

94.7

95.5

(0.8)

95.2

98.2

(3.0)

  Allstate Brand Auto

94.9

99.0

(4.1)

93.8

99.7

(5.9)

  Allstate Brand Homeowners

81.3

75.9

5.4

90.7

88.7

2.0

  Allstate Brand Other Personal Lines

104.3

87.5

16.8

96.1

90.4

5.7

  Esurance

104.4

109.8

(5.4)

104.3

108.3

(4.0)

  Encompass

89.2

98.3

(9.1)

101.9

103.1

(1.2)

Underlying Combined Ratio*

85.4

88.0

(2.6)

85.2

88.0

(2.8)

  Allstate Brand Auto

91.2

95.9

(4.7)

91.6

96.5

(4.9)

  Allstate Brand Homeowners

61.2

61.1

0.1

60.7

59.7

1.0

  Allstate Brand Other Personal Lines

87.9

82.0

5.9

81.3

79.1

2.2

  Esurance

100.5

106.0

(5.5)

100.4

105.3

(4.9)

  Encompass

85.5

89.3

(3.8)

86.6

90.1

(3.5)

(1)

A reconciliation of this non-GAAP measure to the combined ratio, a GAAP measure, is not possible on a forward-looking basis because it is not possible to provide a reliable forecast of catastrophes, and prior year reserve reestimates are expected to be zero because reserves are determined based on our best estimate of ultimate loss reserves as of the reporting date.

 

    • Allstate brand auto net written premium grew 3.2% in the third quarter of 2017, reflecting a 4.5% increase in average premium compared to the prior year quarter, which was partially offset by a 1.7% decline in policies in force. The recorded combined ratio of 94.9 in the third quarter of 2017 was 4.1 points better than the prior year quarter and was favorably impacted by a broad-based decline in accident frequency as well as increased premiums earned and higher favorable prior year reserve reestimates, partially offset by higher catastrophe losses. The underlying combined ratio* in the third quarter of 2017 was 4.7 points better than the third quarter of 2016.

      New issued applications grew 11.5% in the third quarter of 2017 over the prior year quarter as the number of states implementing growth plans was expanded. In the third quarter, 41 states, including all of our 10 largest states, experienced increases in new issued applications compared to the prior year quarter. The renewal ratio of 87.7 was an improvement of 0.2 points from the prior year quarter.

    • Allstate brand homeowners net written premium increased 2.8% in the third quarter of 2017 compared to the prior year quarter, reflecting a 1.9% increase in average premium. The recorded combined ratios of 81.3 in the third quarter of 2017 and 90.7 through the first nine months of 2017 generated $319 million and $473 million of pre-tax underwriting income, respectively. The underlying combined ratio* of 61.2 in the third quarter of 2017 continued to reflect strong underlying profitability.

      Policies in force declined 1.0% as the renewal ratio of 87.5 decreased by 0.4 points compared to the prior year quarter. New issued applications grew 5.3% in the third quarter over the prior year quarter as 6 of our 10 largest states experienced increases.

    • Allstate brand other personal lines net written premium of $454 million increased 1.6% in the third quarter of 2017 compared to the prior year quarter. The recorded combined ratio of 104.3 was 16.8 points higher in the third quarter of 2017 compared to the prior year quarter, primarily due to higher catastrophe losses. The underlying combined ratio* was 87.9 in the third quarter of 2017, an increase of 5.9 points compared to the prior year quarter.
    • Esurance net written premium growth of 1.6% compared to the prior year quarter reflects increased average premium in auto and homeowners insurance, partially offset by a slight decline in auto policies in force. The strategy to expand homeowners insurance continued to make progress, with policies increasing 46.2% from the prior year quarter and written premium of $60 million through the first nine months of 2017.

      The recorded combined ratio of 104.4 was 5.4 points better in the third quarter of 2017 compared to the prior year quarter, driven by a lower expense ratio in auto and homeowners insurance. The underlying combined ratio* of 100.5 was 5.5 points better than the prior year quarter, with improvements in both auto and homeowners insurance. The auto insurance underlying combined ratio* of 99.8 in the third quarter of 2017 was 2.2 points below the prior year quarter.

    • Encompass net written premium declined 9.4% and policies in force were 14.9% lower in the third quarter of 2017 compared to the prior year quarter, as profit improvement plans continued to be implemented. The recorded combined ratio of 89.2 in the third quarter of 2017 was 9.1 points better than the prior year quarter, driven by improved auto loss costs and lower catastrophes due to limited exposure in areas impacted by the hurricanes. The underlying combined ratio* of 85.5 was 3.8 points better than the prior year quarter, due to improvement in the underlying loss ratio, partially offset by a higher expense ratio.
    • SquareTrade made progress on the key criteria underlying its acquisition of growing the U.S. retail business while raising margins. Total policies in force of 34.1 million increased by 2.8 million in the third quarter of 2017 as the existing U.S. retail business continued to expand. Net written premium was $104 million for the third quarter of 2017. Growth initiatives are also being pursued in Europe. The recorded underwriting loss was $29 million and the operating loss* was $4 million, which excludes the $15 million, after-tax, impact of the amortization of purchased intangible assets.
  • Allstate Financial net income was $168 million and operating income was $157 million in the third quarter of 2017. Operating income was $63 million higher than the prior year quarter, primarily due to increased investment income in Allstate Annuities and favorable mortality experience in Allstate Life.

Allstate Financial Results

Three months ended
September 30,

Nine months ended
September 30,

($ in millions)

2017

2016

%

Change

2017

2016

%

Change

Premiums and Contract Charges

$

593

$

571

3.9

$

1,777

$

1,701

4.5

  Allstate Life

316

310

1.9

956

932

2.6

  Allstate Benefits

273

257

6.2

811

759

6.9

  Allstate Annuities

4

4

10

10

Net Income

$

168

$

80

110.0

$

422

$

264

59.8

  Allstate Life

73

43

69.8

190

161

18.0

  Allstate Benefits

29

25

16.0

76

74

2.7

  Allstate Annuities

66

12

450.0

156

29

437.9

Operating Income

$

157

$

94

67.0

$

420

$

318

32.1

  Allstate Life

74

51

45.1

196

181

8.3

  Allstate Benefits

28

25

12.0

75

77

(2.6)

  Allstate Annuities

55

18

205.6

149

60

148.3

Policies in Force (in thousands)

6,290

6,008

4.7

  Allstate Life

2,019

2,019

  Allstate Benefits

4,035

3,733

8.1

  Allstate Annuities

236

256

(7.8)

 

    • Allstate Life net income was $73 million and operating income was $74 million in the third quarter of 2017. Operating income was $23 million higher than the prior year quarter, primarily due to favorable mortality experience and higher traditional life insurance premiums. Policies in force were flat in the third quarter of 2017 compared to the prior year quarter.
    • Allstate Benefits net income was $29 million and operating income was $28 million in the third quarter of 2017. Operating income was $3 million higher than the prior year quarter, primarily due to increased premiums and contract charges, partially offset by higher contract benefits. Policies in force increased 8.1% in the third quarter of 2017 compared to the prior year quarter.
    • Allstate Annuities net income was $66 million and operating income was $55 million in the third quarter of 2017. Operating income was $37 million higher than the prior year quarter, primarily due to higher performance-based net investment income, including appreciation of private equity investments, as well as lower contract benefits. Policies in force declined 7.8% in the third quarter of 2017 compared to the prior year quarter as the business continues to run off.
  • Allstate Investments $83 billion portfolio generated net investment income of $843 million, which was 12.7% above the prior year quarter.

Allstate Investment Results

Three months ended
September 30,

Nine months ended
September 30,

($ in millions, except ratios)

2017

2016

% / pts

Change

2017

2016

% / pts

Change

Net investment income

$

843

$

748

12.7

$

2,488

$

2,241

11.0

  Market-based net investment income(1)

662

642

3.1

1,992

1,944

2.5

  Performance-based net investment income(1)

227

139

63.3

621

397

56.4

Realized capital gains and losses

103

33

212.1

318

(92)

NM

Change in unrealized net capital gains, pre-tax

198

318

(37.7)

977

1,990

(50.9)

Total return on investment portfolio

1.5

%

1.3

%

0.2

4.9

%

5.2

%

(0.3)

(1)

Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.

NM = not meaningful

 

    • Market-based portfolio contributed stable earnings primarily from investment-grade fixed income securities. Market-based net investment income of $662 million in the third quarter of 2017 increased over the prior year quarter, reflecting higher invested assets and stable portfolio yields.
    • Performance-based portfolio generated shareholder value by investing in assets with short-term volatility in valuation but higher long-term returns where liquidity needs are low. Performance-based net investment income rose to $227 million in the third quarter of 2017, a 63% increase, reflecting private equity appreciation, sales of underlying investments and growth in the portfolio.
    • Net realized capital gains were $103 million in the third quarter of 2017, compared to $33 million in the prior year quarter, primarily comprised of net gains on sales, partially offset by write-downs of $28 million.
    • Change in unrealized net capital gains of $198 million in the third quarter of 2017 was due to favorable equity market performance and a decrease in market yields, primarily resulting from tighter credit spreads.
    • Total return on the investment portfolio includes approximately 1% per quarter from investment income as well as changes in the portfolio value between quarters. Total return was 1.5% for the third quarter and 4.9% for the first nine months of 2017, reflecting higher bond and equity valuations. The trailing twelve month total return was 4.1%.

Proactive Capital Management
“In addition to excellent operating results, Allstate continued to provide strong returns to our shareholders through dividends and stock repurchases during the third quarter,” said Steve Shebik, chief financial officer. “Our strong capital position enabled us to remain on track with our $2 billion stock repurchase program that was approved in August.

“A new reporting structure that will expand the reportable segments from four to seven will be initiated in the fourth quarter to enhance transparency around short-term results and long-term value creation. Allstate Protection results will continue to be reported by brand, but businesses that have a larger portion of earnings from services and a lower percentage of underwriting income will now be broken out in a new Service Businesses segment. Allstate Financial will be reported as three segments which have different growth and return characteristics: Life, Benefits and Annuities. Reporting for Discontinued Lines and Coverages and Corporate will remain unchanged.”

Visit www.allstateinvestors.com to view additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be held at 9 a.m. ET on Thursday, November 2.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting people from life’s uncertainties with 78 million proprietary policies. Allstate offers a broad array of protection products through multiple brands and diverse distribution channels, including auto, home, life and other insurance offered through its Allstate, Esurance, Encompass and Answer Financial brands. The company provides additional protection products and services through Allstate Benefits, Allstate Roadside Services, Allstate Dealer Services, Arity and SquareTrade. Allstate is widely known from the slogan “You’re In Good Hands With Allstate®.” Allstate agencies are in virtually every local community in America. The Allstate Foundation, Allstate, its employees and agency owners have a proud history of caring for local communities.

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements
This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.

THE ALLSTATE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

Three months ended
September 30,

Nine months ended
September 30,

2017

2016

2017

2016

(unaudited)

(unaudited)

Revenues

Property-liability insurance premiums

$

8,121

$

7,869

$

24,098

$

23,406

Life and annuity premiums and contract charges

593

571

1,777

1,701

Net investment income

843

748

2,488

2,241

Realized capital gains and losses:

Total other-than-temporary impairment (“OTTI”) losses

(26)

(73)

(135)

(241)

OTTI losses reclassified to (from) other comprehensive income

(2)

(2)

8

Net OTTI losses recognized in earnings

(28)

(73)

(137)

(233)

Sales and other realized capital gains and losses

131

106

455

141

Total realized capital gains and losses

103

33

318

(92)

9,660

9,221

28,681

27,256

Costs and expenses

Property-liability insurance claims and claims expense

5,545

5,553

16,650

17,138

Life and annuity contract benefits

456

484

1,416

1,393

Interest credited to contractholder funds

174

183

522

558

Amortization of deferred policy acquisition costs

1,200

1,138

3,545

3,393

Operating costs and expenses

1,218

1,021

3,401

3,043

Restructuring and related charges

14

5

77

21

Interest expense

83

73

251

218

8,690

8,457

25,862

25,764

Gain on disposition of operations

1

1

15

4

Income from operations before income tax expense

971

765

2,834

1,496

Income tax expense

305

245

894

459

Net income

666

520

1,940

1,037

Preferred stock dividends

29

29

87

87

Net income applicable to common shareholders

$

637

$

491

$

1,853

$

950

Earnings per common share:

Net income applicable to common shareholders per common
share – Basic

$

1.76

$

1.32

$

5.10

$

2.54

Weighted average common shares – Basic

361.3

371.5

363.5

374.4

Net income applicable to common shareholders per common
share – Diluted

$

1.74

$

1.31

$

5.02

$

2.51

Weighted average common shares – Diluted

367.1

375.9

369.1

378.9

Cash dividends declared per common share

$

0.37

$

0.33

$

1.11

$

0.99

THE ALLSTATE CORPORATION

BUSINESS RESULTS

($ in millions, except ratios)

Three months ended
September 30,

Nine months ended
September 30,

2017

2016

2017

2016

Property-Liability

Premiums written

$

8,583

$

8,311

$

24,595

$

23,877

Premiums earned

$

8,121

$

7,869

$

24,098

$

23,406

Claims and claims expense

(5,545)

(5,553)

(16,650)

(17,138)

Amortization of deferred policy acquisition costs

(1,138)

(1,068)

(3,331)

(3,181)

Operating costs and expenses

(996)

(888)

(2,879)

(2,653)

Restructuring and related charges

(13)

(5)

(75)

(20)

Underwriting income

429

355

1,163

414

Net investment income

372

310

1,074

928

Income tax expense on operations

(252)

(218)

(703)

(429)

Realized capital gains and losses, after-tax

54

36

199

(10)

Gain on disposition of operations, after-tax

1

7

Net income applicable to common shareholders

$

604

$

483

$

1,740

$

903

Catastrophe losses

$

861

$

481

$

2,635

$

2,269

Amortization of purchased intangible assets

$

25

$

9

$

74

$

27

Operating ratios:

Claims and claims expense ratio

68.3

70.6

69.1

73.2

Expense ratio

26.4

24.9

26.1

25.0

Combined ratio

94.7

95.5

95.2

98.2

Effect of catastrophe losses on combined ratio

10.6

6.1

11.0

9.7

Effect of prior year reserve reestimates on combined ratio

(1.7)

1.3

(1.3)

0.5

Effect of catastrophe losses included in prior year reserve reestimates on
combined ratio

(0.1)

0.1

Effect of amortization of purchased intangible assets on combined ratio

0.3

0.1

0.3

0.1

Effect of Discontinued Lines and Coverages on combined ratio

1.1

1.3

0.4

0.4

Allstate Financial

Premiums and contract charges

$

593

$

571

$

1,777

$

1,701

Net investment income

461

427

1,383

1,281

Contract benefits

(456)

(484)

(1,416)

(1,393)

Interest credited to contractholder funds

(173)

(183)

(519)

(546)

Amortization of deferred policy acquisition costs

(58)

(68)

(202)

(207)

Operating costs and expenses

(130)

(126)

(395)

(370)

Restructuring and related charges

(1)

(2)

(1)

Income tax expense on operations

(79)

(43)

(206)

(147)

Operating income

157

94

420

318

Realized capital gains and losses, after-tax

13

(14)

9

(46)

Valuation changes on embedded derivatives that are not hedged, after-tax

(1)

(2)

(8)

DAC and DSI amortization relating to realized capital gains and losses and
valuation changes on embedded derivatives that are not hedged, after-tax

(2)

(1)

(8)

(3)

Gain on disposition of operations, after-tax

1

1

3

3

Net income applicable to common shareholders

$

168

$

80

$

422

$

264

Corporate and Other

Net investment income

$

10

$

11

$

31

$

32

Operating costs and expenses

(175)

(80)

(360)

(238)

Income tax benefit on operations

60

26

121

77

Preferred stock dividends

(29)

(29)

(87)

(87)

Operating loss

(134)

(72)

(295)

(216)

Realized capital gains and losses, after-tax

(1)

Business combination expenses, after-tax

(1)

(14)

Net loss applicable to common shareholders

$

(135)

$

(72)

$

(309)

$

(217)

Consolidated net income applicable to common shareholders

$

637

$

491

$

1,853

$

950

THE ALLSTATE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

($ in millions, except par value data)

 

September 30,
2017

December 31,
2016

Assets

(unaudited)

Investments:

Fixed income securities, at fair value (amortized cost $57,608 and $56,576)

$

59,391

$

57,839

Equity securities, at fair value (cost $5,468 and $5,157)

6,434

5,666

Mortgage loans

4,322

4,486

Limited partnership interests

6,600

5,814

Short-term, at fair value (amortized cost $2,198 and $4,288)

2,198

4,288

Other

3,826

3,706

Total investments

82,771

81,799

Cash

690

436

Premium installment receivables, net

5,922

5,597

Deferred policy acquisition costs

4,147

3,954

Reinsurance recoverables, net

9,748

8,745

Accrued investment income

590

567

Property and equipment, net

1,067

1,065

Goodwill

2,309

1,219

Other assets

2,966

1,835

Separate Accounts

3,422

3,393

Total assets

$

113,632

$

108,610

Liabilities

Reserve for property-liability insurance claims and claims expense

$

27,154

$

25,250

Reserve for life-contingent contract benefits

12,227

12,239

Contractholder funds

19,650

20,260

Unearned premiums

13,535

12,583

Claim payments outstanding

959

879

Deferred income taxes

1,249

487

Other liabilities and accrued expenses

6,968

6,599

Long-term debt

6,349

6,347

Separate Accounts

3,422

3,393

Total liabilities

91,513

88,037

Shareholders’ equity

Preferred stock and additional capital paid-in, $1 par value, 72.2 thousand shares issued
and outstanding, $1,805 aggregate liquidation preference

1,746

1,746

Common stock, $.01 par value, 900 million issued, 360 million and 366 million shares
outstanding

9

9

Additional capital paid-in

3,330

3,303

Retained income

42,125

40,678

Deferred ESOP expense

(6)

(6)

Treasury stock, at cost (540 million and 534 million shares)

(25,413)

(24,741)

Accumulated other comprehensive income:

Unrealized net capital gains and losses:

Unrealized net capital gains and losses on fixed income securities with OTTI

68

57

Other unrealized net capital gains and losses

1,715

1,091

Unrealized adjustment to DAC, DSI and insurance reserves

(132)

(95)

Total unrealized net capital gains and losses

1,651

1,053

Unrealized foreign currency translation adjustments

(14)

(50)

Unrecognized pension and other postretirement benefit cost

(1,309)

(1,419)

Total accumulated other comprehensive income (loss)

328

(416)

Total shareholders’ equity

22,119

20,573

Total liabilities and shareholders’ equity

$

113,632

$

108,610

THE ALLSTATE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

Nine months ended
September 30,

2017

2016

Cash flows from operating activities

(unaudited)

Net income

$

1,940

$

1,037

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and other non-cash items

358

285

Realized capital gains and losses

(318)

92

Gain on disposition of operations

(15)

(4)

Interest credited to contractholder funds

522

558

Changes in:

Policy benefits and other insurance reserves

1,276

978

Unearned premiums

525

540

Deferred policy acquisition costs

(176)

(159)

Premium installment receivables, net

(267)

(236)

Reinsurance recoverables, net

(1,017)

(420)

Income taxes

119

30

Other operating assets and liabilities

267

41

Net cash provided by operating activities

3,214

2,742

Cash flows from investing activities

Proceeds from sales

Fixed income securities

19,508

19,132

Equity securities

5,179

4,069

Limited partnership interests

767

634

Other investments

170

206

Investment collections

Fixed income securities

3,038

3,430

Mortgage loans

477

403

Other investments

458

281

Investment purchases

Fixed income securities

(23,935)

(22,282)

Equity securities

(5,296)

(4,113)

Limited partnership interests

(1,082)

(1,128)

Mortgage loans

(311)

(460)

Other investments

(700)

(674)

Change in short-term investments, net

2,257

94

Change in other investments, net

(28)

(60)

Purchases of property and equipment, net

(216)

(190)

Acquisition of operations

(1,356)

Net cash used in investing activities

(1,070)

(658)

Cash flows from financing activities

Repayments of long-term debt

(16)

Contractholder fund deposits

767

785

Contractholder fund withdrawals

(1,416)

(1,537)

Dividends paid on common stock

(391)

(364)

Dividends paid on preferred stock

(87)

(87)

Treasury stock purchases

(848)

(1,154)

Shares reissued under equity incentive plans, net

132

123

Excess tax benefits on share-based payment arrangements

25

Other

(47)

35

Net cash used in financing activities

(1,890)

(2,190)

Net increase (decrease) in cash

254

(106)

Cash at beginning of period

436

495

Cash at end of period

$

690

$

389

The following table presents the investment portfolio by strategy as of September 30, 2017.

($ in millions)

Total

Market-Based

Performance-Based

Fixed income securities

$

59,391

$

59,318

$

73

Equity securities

6,434

6,336

98

Mortgage loans

4,322

4,322

Limited partnership interests

6,600

654

5,946

Short-term investments

2,198

2,198

Other

3,826

3,272

554

Total

$

82,771

$

76,100

$

6,671

Property-Liability

$

43,843

$

40,331

$

3,512

Allstate Financial

36,711

33,552

3,159

Corporate & Other

2,217

2,217

Total

$

82,771

$

76,100

$

6,671

The following table presents investment income by investment strategy for the three and nine months ended September 30.

Three months ended
September 30,

Nine months ended
September 30,

($ in millions)

2017

2016

2017

2016

Market-Based:

Property-Liability

$

286

$

257

$

846

$

786

Allstate Financial

366

374

1,114

1,124

Corporate & Other

11

12

36

37

Total Market-Based

663

643

1,996

1,947

Performance-Based:

Property-Liability

116

76

312

211

Allstate Financial

119

71

334

210

Corporate & Other

Total Performance-Based

235

147

646

421

Investment income, before expense

898

790

2,642

2,368

Investment expense

(55)

(42)

(154)

(127)

Net investment income

$

843

$

748

$

2,488

$

2,241

Definitions of Non-GAAP Measures
We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Operating income is net income applicable to common shareholders, excluding:

  • realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in operating income,
  • valuation changes on embedded derivatives that are not hedged, after-tax,
  • amortization of deferred policy acquisition costs (DAC) and deferred sales inducements (DSI), to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives that are not hedged, after-tax,
  • business combination expenses and the amortization of purchased intangible assets, after-tax,
  • gain (loss) on disposition of operations, after-tax, and
  • adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years.

Net income applicable to common shareholders is the GAAP measure that is most directly comparable to operating income.

We use operating income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the company’s ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of realized capital gains and losses, valuation changes on embedded derivatives that are not hedged, business combination expenses and the amortization of purchased intangible assets, gain (loss) on disposition of operations and adjustments for other significant non-recurring, infrequent or unusual items. Realized capital gains and losses, valuation changes on embedded derivatives that are not hedged and gain (loss) on disposition of operations may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Consistent with our intent to protect results or earn additional income, operating income includes periodic settlements and accruals on certain derivative instruments that are reported in realized capital gains and losses because they do not qualify for hedge accounting or are not designated as hedges for accounting purposes. These instruments are used for economic hedges and to replicate fixed income securities, and by including them in operating income, we are appropriately reflecting their trends in our performance and in a manner consistent with the economically hedged investments, product attributes (e.g. net investment income and interest credited to contractholder funds) or replicated investments. Business combination expenses are excluded because they are non-recurring in nature and the amortization of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, operating income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine operating income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Operating income is used by management along with the other components of net income applicable to common shareholders to assess our performance. We use adjusted measures of operating income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income applicable to common shareholders, operating income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize operating income results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses operating income as the denominator. Operating income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business.

The following tables reconcile net income applicable to common shareholders and operating income. Taxes on adjustments to reconcile net income applicable to common shareholders and operating income generally use a 35% effective tax rate and are reported net with the reconciling adjustment. If the effective tax rate is other than 35%, this is specified in the disclosure.

($ in millions, except per share data)

Three months ended September 30,

Property-Liability

Allstate Financial

Consolidated

Per diluted
common share

2017

2016

2017

2016

2017

2016

2017

2016

Net income applicable to common shareholders

$

604

$

483

$

168

$

80

$

637

$

491

$

1.74

$

1.31

Realized capital gains and losses, after-tax

(54)

(36)

(13)

14

(67)

(22)

(0.18)

(0.06)

Valuation changes on embedded derivatives that are
not hedged, after-tax

1

1

DAC and DSI amortization relating to realized capital
gains and losses and valuation changes on embedded
derivatives that are not hedged, after-tax

2

1

2

1

0.01

Reclassification of periodic settlements and accruals
on non-hedge derivative instruments, after-tax

(1)

(1)

Business combination expenses and the amortization
of purchased intangible assets, after-tax

16

5

17

5

0.04

0.01

Gain on disposition of operations, after-tax

(1)

(1)

(1)

(2)

(1)

(0.01)

Operating income*

$

564

$

452

$

157

$

94

$

587

$

474

$

1.60

$

1.26

Nine months ended September 30,

Property-Liability

Allstate Financial

Consolidated

Per diluted
common share

2017

2016

2017

2016

2017

2016

2017

2016

Net income applicable to common shareholders

$

1,740

$

903

$

422

$

264

$

1,853

$

950

$

5.02

$

2.51

Realized capital gains and losses, after-tax

(199)

10

(9)

46

(208)

57

(0.56)

0.15

Valuation changes on embedded derivatives that are
not hedged, after-tax

2

8

2

8

0.01

0.02

DAC and DSI amortization relating to realized capital
gains and losses and valuation changes on embedded
derivatives that are not hedged, after-tax

8

3

8

3

0.02

0.01

Reclassification of periodic settlements and accruals
on non-hedge derivative instruments, after-tax

(2)

(1)

(2)

(1)

(0.01)

Business combination expenses and the amortization
of purchased intangible assets, after-tax

48

17

62

17

0.17

0.04

Gain on disposition of operations, after-tax

(7)

(3)

(3)

(10)

(3)

(0.03)

(0.01)

Operating income*

$

1,580

$

929

$

420

$

318

$

1,705

$

1,031

$

4.62

$

2.72

Operating income return on common shareholders’ equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month operating income by the average of common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on common shareholders’ equity is the most directly comparable GAAP measure. We use operating income as the numerator for the same reasons we use operating income, as discussed above. We use average common shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily attributable to the company’s earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income applicable to common shareholders and return on common shareholders’ equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on common shareholders’ equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine operating income return on common shareholders’ equity from return on common shareholders’ equity is the transparency and understanding of their significance to return on common shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of operating income return on common shareholders’ equity in incentive compensation. Therefore, we believe it is useful for investors to have operating income return on common shareholders’ equity and return on common shareholders’ equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize operating income return on common shareholders’ equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. Operating income return on common shareholders’ equity should not be considered a substitute for return on common shareholders’ equity and does not reflect the overall profitability of our business.

The following tables reconcile return on common shareholders’ equity and operating income return on common shareholders’ equity.

($ in millions)

For the twelve months ended

September 30,

2017

2016

Return on common shareholders’ equity

Numerator:

Net income applicable to common shareholders

$

2,664

$

1,410

Denominator:

Beginning common shareholders’ equity (1)

$

19,188

$

18,758

Ending common shareholders’ equity (1)

20,373

19,188

Average common shareholders’ equity

$

19,781

$

18,973

Return on common shareholders’ equity

13.5

%

7.4

%

($ in millions)

For the twelve months ended
September 30,

2017

2016

Operating income return on common shareholders’ equity

Numerator:

Operating income

$

2,512

$

1,656

Denominator:

Beginning common shareholders’ equity

$

19,188

$

18,758

Unrealized net capital gains and losses

1,817

879

Adjusted beginning common shareholders’ equity

17,371

17,879

Ending common shareholders’ equity

20,373

19,188

Unrealized net capital gains and losses

1,651

1,817

Adjusted ending common shareholders’ equity

18,722

17,371

Average adjusted common shareholders’ equity

$

18,047

$

17,625

Operating income return on common shareholders’ equity*

13.9

%

9.4

%

_____________

(1)

Excludes equity related to preferred stock of $1,746 million.

Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization of purchased intangible assets (“underlying combined ratio”) is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year non-catastrophe reserve reestimates on the combined ratio, and the effect of amortization of purchased intangible assets on the combined ratio. We believe that this ratio is useful to investors and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization of purchased intangible assets. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves. Amortization of purchased intangible assets relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide it to facilitate a comparison to our outlook on the underlying combined ratio. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

The following tables reconcile the respective combined ratio to the underlying combined ratio.

Property-Liability

Three months ended
September 30,

Nine months ended
September 30,

2017

2016

2017

2016

Combined ratio

94.7

95.5

95.2

98.2

Effect of catastrophe losses

(10.6)

(6.1)

(11.0)

(9.7)

Effect of prior year non-catastrophe reserve reestimates

1.6

(1.3)

1.3

(0.4)

Effect of amortization of purchased intangible assets

(0.3)

(0.1)

(0.3)

(0.1)

Underlying combined ratio*

85.4

88.0

85.2

88.0

Effect of prior year catastrophe reserve reestimates

(0.1)

0.1

Underwriting margin is calculated as 100% minus the combined ratio.

Allstate Brand – Total

Three months ended
September 30,

Nine months ended
September 30,

2017

2016

2017

2016

Combined ratio

92.7

93.1

93.5

96.9

Effect of catastrophe losses

(11.3)

(6.2)

(11.3)

(10.0)

Effect of prior year non-catastrophe reserve reestimates

2.9

1.9

Underlying combined ratio*

84.3

86.9

84.1

86.9

Effect of prior year catastrophe reserve reestimates

(0.1)

0.1

Allstate Brand – Auto Insurance

Three months ended
September 30,

Nine months ended
September 30,

2017

2016

2017

2016

Combined ratio

94.9

99.0

93.8

99.7

Effect of catastrophe losses

(7.4)

(3.1)

(4.4)

(3.4)

Effect of prior year non-catastrophe reserve reestimates

3.7

2.2

0.2

Underlying combined ratio*

91.2

95.9

91.6

96.5

Effect of prior year catastrophe reserve reestimates

(0.1)

(0.1)

(0.1)

Allstate Brand – Homeowners Insurance

Three months ended
September 30,

Nine months ended
September 30,

2017

2016

2017

2016

Combined ratio

81.3

75.9

90.7

88.7

Effect of catastrophe losses

(22.4)

(15.4)

(31.6)

(29.3)

Effect of prior year non-catastrophe reserve reestimates

2.3

0.6

1.6

0.3

Underlying combined ratio*

61.2

61.1

60.7

59.7

Effect of prior year catastrophe reserve reestimates

(0.2)

0.3

(0.1)

0.4

Allstate Brand – Other Personal Lines

Three months ended
September 30,

Nine months ended
September 30,

2017

2016

2017

2016

Combined ratio

104.3

87.5

96.1

90.4

Effect of catastrophe losses

(15.7)

(6.0)

(14.7)

(12.5)

Effect of prior year non-catastrophe reserve reestimates

(0.7)

0.5

(0.1)

1.2

Underlying combined ratio*

87.9

82.0

81.3

79.1

Effect of prior year catastrophe reserve reestimates

(0.3)

0.4

(0.1)

Esurance Brand – Total

Three months ended
September 30,

Nine months ended
September 30,

2017

2016

2017

2016

Combined ratio

104.4

109.8

104.3

108.3

Effect of catastrophe losses

(3.9)

(3.3)

(3.8)

(2.5)

Effect of prior year non-catastrophe reserve reestimates

0.2

1.0

0.1

1.0

Effect of amortization of purchased intangible assets

(0.2)

(1.5)

(0.2)

(1.5)

Underlying combined ratio*

100.5

106.0

100.4

105.3

Effect of prior year catastrophe reserve reestimates

(0.1)

Encompass Brand – Total

Three months ended
September 30,

Nine months ended
September 30,

2017

2016

2017

2016

Combined ratio

89.2

98.3

101.9

103.1

Effect of catastrophe losses

(4.5)

(9.0)

(15.8)

(11.2)

Effect of prior year non-catastrophe reserve reestimates

0.8

0.5

(1.8)

Underlying combined ratio*

85.5

89.3

86.6

90.1

Effect of prior year catastrophe reserve reestimates

0.3

Adjusted SquareTrade operating income is a non-GAAP measure, which is computed as net income (loss) applicable to common shareholders, excluding amortization of purchased intangible assets, after-tax, and realized capital gains and losses, after-tax, and adjusted for the after-tax income statement effects of acquisition-related purchase accounting fair value adjustments to unearned premiums, contractual liability insurance policy premium expenses, and commissions paid to retailers.  Net income (loss) applicable to shareholders is the GAAP measure that is most directly comparable to adjusted SquareTrade operating income. We use adjusted SquareTrade operating income as an important measure to evaluate SquareTrade’s results of operations.  We believe that the measure provides investors with a valuable measure of SquareTrade’s ongoing performance because it reveals trends that may be obscured by the amortization of purchased intangible assets, the acquisition-related purchase accounting fair value adjustments, and the net effects of realized capital gains and losses.  Amortization of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our business results or trends.  We adjust for the effects of acquisition-related purchase accounting fair value adjustments because they relate to the acquisition and their effects are not indicative of the underlying business results and trends.  Realized capital gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to SquareTrade’s operations.  Adjusted SquareTrade operating income highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of net income applicable to common shareholders to assess our performance.  We believe it is useful for investors to evaluate net income applicable to common shareholders, adjusted SquareTrade operating income and their components separately and in the aggregate when reviewing and evaluating SquareTrade’s performance.  Adjusted SquareTrade operating income should not be considered a substitute for net income applicable to common shareholders and does not reflect the overall profitability of our business.

The following table reconciles the SquareTrade net loss applicable to shareholders to the adjusted SquareTrade operating loss.

SquareTrade

Three months ended
September 30, 2017

Nine months ended
September 30, 2017

Net loss applicable to common shareholders

$

(19)

$

(56)

Realized capital gains and losses, after-tax

Amortization of purchased intangible assets, after-tax

15

45

Operating loss *

(4)

(11)

Fair value adjustments, after-tax

2

9

Adjusted SquareTrade operating loss *

$

(2)

$

(2)

 

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SOURCE The Allstate Corporation

Related Links

http://www.allstate.com

The Allstate Corporation Announces Availability of Third Quarter 2017 Results

The Allstate Corporation will conduct a conference call and webcast at 9 a.m. ET on Thursday, November 2, to discuss third quarter 2017 earnings. The investor webcast also can be accessed at www.allstateinvestors.com. For those unable to participate in the live event, a webcast replay will be posted on the company’s website shortly after the event ends.

To receive email alerts about Allstate, you can enroll your email address by visiting the “Email Alerts” section of www.allstateinvestors.com. In addition, you may enroll to automatically receive RSS feeds of news releases at www.allstatenewsroom.com.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting people from life’s uncertainties with 78 million proprietary policies. Allstate offers a broad array of protection products through multiple brands and diverse distribution channels, including auto, home, life and other insurance offered through its Allstate, Esurance, Encompass and Answer Financial brands. The Company provides additional protection products and services through Allstate Benefits, Allstate Roadside Services, Allstate Dealer Services, Arity and SquareTrade. Allstate is widely known from the slogan “You’re In Good Hands With Allstate®.” Allstate agencies are in virtually every local community in America. The Allstate Foundation, Allstate, its employees and agency owners have a proud history of caring for local communities.

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

 

View original content with multimedia:http://www.prnewswire.com/news-releases/the-allstate-corporation-announces-availability-of-third-quarter-2017-results-300547921.html

SOURCE The Allstate Corporation

Related Links

http://www.allstate.com

Allstate, Prudential, Hotel Reit Near Buys Ahead Of After-Hours Earnings | Stock News & Stock Market Analysis

MetLife (MET), Allstate (ALL), Prudential (PRU) and Host Hotels (HST) report quarterly earnings after the close on Wednesday. Check back here for updates.

XAutoplay: On | OffThe results arrive as Allstate and Host Hotels near buy points, Prudential hovers right at a buy point, while MetLife remains extended past a buy point.

Check for updates as the companies report.

MetLife

Estimates: Wall Street expects the life-insurance giant to report third-quarter earnings per share of 90 cents, a 30% drop, with revenue falling 18% to $15.248 billion, according to Zacks Investment Research.

Results: Coming after the close.

Stock: MetLife rose 0.7%, to 53.94, in late afternoon trade in the stock market today. The stock is extended above a 50.64 buy point of a cup base.

The company in August spun off Brighthouse Financial (BHF), which sold life insurance in the U.S., and said that it would likely take a charge of more than $1.1 billion related to the split.

The move is part of MetLife’s effort to shed riskier, higher-capital or underperforming businesses, but those attempts could hit short-term profits. Profits in the life-insurance industry have been hurt by low interest rates and weaker enrollment.

Prudential

Estimates: The company, also among the biggest life insurance providers in the U.S., is expected to report Q3 EPS up 2% to $2.71, on revenue of $12.240 billion, down 9%.

Results: After the close.

Stock: Prudential rose 0.3% to 110.76 intraday, floating above and below a 110.78 buy point of a handle in a cup base.

Prudential this year said it plans to restructure its U.S. businesses, a move that it said was intended to seize longer-term opportunities for growth.

Zacks analysts note that the insurer stands to benefit from a surge in demand for retirement-related products from baby boomers. Prudential, like MetLife, has also shown strength internationally.

Allstate

Estimates: The property-and-casualty insurer is seen reporting third-quarter EPS of $1.08, down 14%, as revenue slips 8% to $8.453 billion.

Results: Coming after the close.

Stock: Allstate climbed 0.3% to 94.45 intraday, near a 95.35 buy point of a flat base.

The results come after speculation over the GOP’s tax-cut plans and hurricanes Harvey, Irma and Maria, which initially sank property and casualty insurers like Allstate, although investor fears eased later on. Barclays estimated that Allstate was among the firms that had the most to gain from the GOP’s plans.

Host Hotels

Estimates: The high-end hotel real-estate investment trust is seen reporting an 11% drop in third-quarter EPS to 33 cents, as revenue dips 2% to $1.273 billion.

Results: Coming after the close.

Stock: Shares rose 0.7% to 19.70. The stock is near a 20.31 buy point of a flat base. Aggressive investors could use 20.05 as an alternative entry.

RELATED:

Prudential Financial Shows Rising Relative Strength; Still Shy Of Key Threshold

Tax Plan Could Put These 5 Insurers In Buy Zone: Investing Action Plan

 

Saratoga County nonprofit wins $35K in Allstate Foundation Purple Purse Challenge



SARATOGA SPRINGS, N.Y. >> Wellspring, the Saratoga County based domestic violence and sexual assault services resource, has won a $35,000 prize grant from The Allstate Foundation after placing in 3rd in a nationwide fundraising competition for domestic violence organizations in Allstate’s Purple Purse Challenge.

According to a news release, this marks the third prize won by the organization during the month-long challenge. Wellspring also finished the second week of the challenge in the top the, winning an additional $10,000 challenge gift and finished the final week in the top five, winning $3,000.

In total, Wellspring raised more than $80,000 thanks to the generosity of the community. It will use the money to support its comprehensive approach to helping victims of domestic violence, providing services such as shelter, a 24-Hour hotline, counseling, and legal advocacy, the release said. The funds will also help expand the programs that focus on prevention, issue awareness, and social change, such as partnerships with local schools and law enforcement.

Wellspring was supported in the challenge by 38 volunteers who helped raise funds from more than 300 donors, the release said. Local businesses and service organizations also supported Wellspring throughout the challenge—some hosted lunch and learn sessions, donation fitness classes, a company taco day, several promoted dress down days, and a local restaurant organized a dining out night to raise money and awareness.

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Maggie Fronk, executive director of Wellspring, said, “I am totally in awe of the generosity of our community in supporting Wellspring’s vision of ending relationship and sexual abuse. “

In total, the Purple Purse Challenge raised $2.5 million that will go toward helping domestic violence survivors regain their independence.

The Purple Purse Challenge is part of Allstate Foundation Purple Purse, which aims to help end domestic violence and financial abuse through financial empowerment.

If you or someone you know is in a domestic violence situation, call the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or TTY 1-800-787-3224.

CBRE Global Investors acquires warehouse on behalf of Allstate

CBRE Global Investors has acquired Tempe Logistics Center, a 175,314-square foot industrial building located in the Southeast Valley submarket of Phoenix, Arizona, on behalf of Allstate, as part of its investment portfolio. The asset is fully leased to high-quality, investment-grade tenants.

Tempe Logistics Center is centrally located with access to major arteries allowing quick distribution throughout the Phoenix metro area. It also offers easy access to Phoenix Sky Harbor International Airport and is proximate to Arizona State University and the associated amenity base, which helps tenants attract and retain employees.

“The Phoenix industrial market is home to a diverse array of tenants across major sectors including technology, manufacturing, distribution, and research and development,” said Mike Everly, Portfolio Manager, CBRE Global Investors. “Its high standard of living and favorable business climate have always been strong demand drivers, and the Southeast Valley submarket is considered a key in-fill market within the metro area.”

“We’re thrilled to be working with CBRE Global Investors on such a successful project,” said Mike Moran, Managing Director of Real Estate Equity at Allstate. “The strategic location, quality of the asset and its tenants, and the heightened demand for industrial assets all make Tempe Logistics Center a good fit for our investment portfolio.”

Located at 1524 W. 14th Street in Tempe, the property is a “last-mile” warehouse with 18- to 24-foot clear heights, automatic fire suppression, 23 dock loading doors, six grade-level doors, an over-standard parking ratio, and 130-foot truck courts, which allow for greater maneuverability and better accommodation of multiple trucks. Recent tenant improvements include the installation of full air conditioning in the office and warehouse space, a new office and kitchen buildout, and an upgraded power supply. 

Cushman & Wakefield’s Phoenix industrial team of Will Strong; Mike Haenel; Andy Markham, SIOR; and Phil Haenel negotiated the transaction on behalf of the seller, LBA Realty.

“This investment opportunity offered both stable cash flow in its long-term leases and value-add upside potential with a below-market rate,” said Will Strong, Capital Markets, Cushman & Wakefield. “With healthy recent absorption levels, rental rates in the Tempe submarket are expected to increase significantly as the overall market continues to grow and fundamentals continue to improve.”