[May 01, 2018] |
|
Allstate Executing Profitable Growth Plan
The Allstate Corporation (NYSE: ALL) today reported financial results
for the first quarter of 2018.
|
The Allstate Corporation Consolidated Highlights
|
|
Three months ended March 31,
|
($ in millions, except per share data and ratios)
|
2018
|
2017
|
% / pts
Change
|
Consolidated revenues
|
$
|
9,770
|
|
$
|
9,644
|
|
1.3
|
|
Net income applicable to common shareholders
|
946
|
|
666
|
|
42.0
|
|
per diluted common share
|
2.63
|
|
1.79
|
|
46.9
|
|
Adjusted net income*
|
1,066
|
|
608
|
|
75.3
|
|
per diluted common share*
|
2.96
|
|
1.64
|
|
80.5
|
|
Return on common shareholders' equity (trailing twelve months)
|
|
Net income applicable to common shareholders
|
16.6
|
%
|
11.6
|
%
|
5.0
|
|
Adjusted net income*
|
15.0
|
%
|
11.9
|
%
|
3.1
|
|
Book value per common share
|
58.64
|
|
52.41
|
|
11.9
|
|
Property-Liability combined ratio
|
|
|
|
Recorded
|
88.0
|
|
92.9
|
|
(4.9
|
)
|
Underlying combined ratio* (excludes catastrophes, prior year
reserve reestimates and amortization of purchased intangibles)
|
84.2
|
|
84.1
|
|
0.1
|
|
Property and casualty insurance premiums written
|
8,131
|
|
7,723
|
|
5.3
|
|
Catastrophe losses
|
361
|
|
781
|
|
(53.8
|
)
|
Total policies in force (in thousands)
|
85,581
|
|
73,666
|
|
16.2
|
|
*
|
|
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.
|
|
|
|
"Excellent execution of our operating plan led to increased growth and
profitability in the first quarter of 2018. We also benefited from an
unexpected decline in auto accident frequency, lower catastrophe losses
and a reduction in federal taxes," said Tom Wilson, Chairman, President
and Chief Executive Officer of The Allstate Corporation. "Net income was
$946 million, or $2.63 per share, reflecting good margins in the
Property-Liability, Life and Benefits businesses and a lower tax rate.
The recorded combined ratio of 88.0 was 4.9 points below last year. We
are also pleased that the Allstate and Esurance brands increased
policies in force, due to higher customer retention and increased new
business. Allstate Benefits and SquareTrade continued to have strong
growth.
"Progress was also made on all the 2018 Operating Priorities in the
first quarter. Customers were better served as internal measures of Net
Promoter Score increased, which supports higher customer retention and
growth. Investments contributed $786 million of pre-tax income
reflecting good results in the market and performance-based portfolios.
Total portfolio return for the quarter was a negative 50 basis points as
a 0.9% contribution from investment income was offset by a 1.4% decline
in the current market value of the portfolio due to higher interest
rates, wider credit spreads and lower equity prices. Progress was also
made in building long-term growth platforms and ensuring Allstate meets
the needs of all of our stakeholders, as discussed in the recently
released Prosperity
Report," concluded Wilson.
First Quarter 2018 Results
-
Total revenue of $9.8 billion in the first quarter of 2018 increased
1.3% compared to the prior year quarter.
-
Property and casualty insurance premiums earned increased 4.1%.
-
Life premiums and contract charges increased 3.9%.
-
Net investment income increased 5.1%.
-
Realized capital losses were $134 million compared to a gain of $134
million in the prior year quarter, which reduced year-over-year
revenue growth by 2.8 points.
-
Net income applicable to common shareholders was $946 million, or
$2.63 per diluted share, in the first quarter of 2018, compared to
$666 million, or $1.79 per diluted share, in the first quarter of
2017. Adjusted net income* was $1.07 billion in the first quarter of
2018, compared to $608 million in the first quarter of 2017, as
reduced catastrophe losses, a lower effective tax rate and improved
underlying loss performance more than offset higher expenses.
-
Property-Liability underwriting income of $959 million was $411
million better than the prior year quarter. Lower catastrophe losses,
increased premiums earned and lower auto accident frequency were
partially offset by higher operating expenses, increased severity and
lower favorable prior year reserve reestimates.
-
The underlying combined ratio* of 84.2 for the first quarter of 2018
was essentially flat to the prior year quarter as improved auto
insurance margins were offset by the impact of adverse weather in
homeowners insurance. First quarter results were better than the
annual outlook range of 86 to 88(1) as the continued
reduction in accident frequency favorably impacted auto insurance
profitability.
-
Non-catastrophe prior year reserve releases of $55 million in the
first quarter of 2018 included Allstate brand releases of $56 million,
primarily driven by auto injury coverages.
|
Property-Liability Results
|
|
Three months ended March 31,
|
(% to earned premiums)
|
2018
|
2017
|
pts
Change
|
Recorded Combined Ratio
|
88.0
|
|
92.9
|
|
(4.9
|
)
|
Allstate Brand Auto
|
88.5
|
|
90.7
|
|
(2.2
|
)
|
Allstate Brand Homeowners
|
80.8
|
|
93.7
|
|
(12.9
|
)
|
Allstate Brand Other Personal Lines
|
89.0
|
|
93.1
|
|
(4.1
|
)
|
Esurance
|
99.3
|
|
102.4
|
|
(3.1
|
)
|
Encompass
|
98.4
|
|
111.7
|
|
(13.3
|
)
|
Underlying Combined Ratio*
|
84.2
|
|
84.1
|
|
0.1
|
|
Allstate Brand Auto
|
90.0
|
|
90.9
|
|
(0.9
|
)
|
Allstate Brand Homeowners
|
63.5
|
|
61.3
|
|
2.2
|
|
Allstate Brand Other Personal Lines
|
83.3
|
|
78.8
|
|
4.5
|
|
Esurance
|
98.4
|
|
100.2
|
|
(1.8
|
)
|
Encompass
|
87.9
|
|
86.6
|
|
1.3
|
|
_____________________
|
(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 5.5% in the first
quarter of 2018, reflecting a 4.8% increase in average premium and a
0.3% increase in policies in force. Growth in policies in force was
driven by continued improvement in the renewal ratio and higher new
issued applications.
-
The recorded combined ratio of 88.5 in the first quarter of 2018 was
2.2 points better than the prior year quarter, due to increased
premiums earned, lower catastrophe losses and a broad-based decline in
accident frequency. The underlying combined ratio* of 90.0 in the
quarter was 0.9 points better than the prior year quarter.
-
Allstate brand homeowners net written premium increased 4.4% in
the first quarter of 2018 compared to the prior year quarter, due to
increased average premium. Policies in force increased slightly
compared to the prior year quarter, driven by improvement in the
renewal ratio and increased new issued applications compared to the
prior year quarter.
-
The recorded combined ratio of 80.8 in the first quarter of 2018 was
12.9 points better than the prior year quarter, due to lower
catastrophe losses and increased premiums earned, partially offset by
unfavorable prior year reserve reestimates compared to favorable
reserve reestimates in the first quarter of 2017. The underlying
combined ratio* of 63.5 was 2.2 points higher than the prior year
quarter, due to elevated underlying loss costs, mainly driven by
adverse winter weather in the eastern part of the U.S.
-
Allstate brand other personal lines net written premium of $375
million increased 1.9% in the first quarter of 2018 compared to the
prior year quarter. The recorded combined ratio of 89.0 was 4.1 points
better than the prior year quarter, primarily driven by lower
catastrophe losses. The underlying combined ratio* of 83.3 in the
first quarter of 2018 was 4.5 points higher than the prior year
period, primarily due to elevated underlying loss costs.
-
Esurance net written premium growth of 7.9% compared to the
prior year quarter reflects increased average premium in auto and
homeowners insurance, and a 1.1% increase in total policies in force.
The strategy to drive broad-based growth across lines of business
resulted in a 33.3% increase in homeowners policies in force and
higher new issued auto applications and retention.
-
The recorded combined ratio of 99.3 in the first quarter of 2018 was
3.1 points better than the prior year quarter, due to improvement in
both the loss ratio and expense ratio. The underlying combined ratio*
of 98.4 was 1.8 points better than the prior year quarter, as both
auto and homeowners insurance results improved.
-
Encompass net written premium declined 5.5% in the first
quarter of 2018 compared to the prior year quarter, reflecting the
continued execution of profit improvement plans. The recorded combined
ratio of 98.4 in the first quarter of 2018 was 13.3 points better than
the prior year quarter, due to lower catastrophe losses. The
underlying combined ratio* of 87.9 for the first quarter was 1.3
points higher than the prior year quarter as a higher expense ratio
more than offset improvement in the underlying loss ratio.
-
Service Businesses policies in force grew to 46.5 million, an
increase of 11.7 million compared to the prior year quarter, driven by
SquareTrade. Adjusted net loss of $5 million in the first quarter of
2018 was $5 million better than the first quarter of 2017, due to
improved loss experience at SquareTrade, partially offset by
investments in research and business expansion at Arity.
|
Service Businesses Results
|
|
Three months ended March 31,
|
($ in millions)
|
2018
|
|
2017
|
|
% / $
Change
|
Total Revenues
|
$
|
313
|
|
|
$
|
247
|
|
|
26.7
|
%
|
SquareTrade
|
122
|
|
|
59
|
|
|
106.8
|
|
Allstate Roadside Services
|
74
|
|
|
78
|
|
|
(5.1
|
)
|
Allstate Dealer Services
|
96
|
|
|
90
|
|
|
6.7
|
|
Arity
|
21
|
|
|
20
|
|
|
5.0
|
|
Adjusted Net (Loss) / Income
|
$
|
(5
|
)
|
|
$
|
(10
|
)
|
|
$
|
5
|
|
SquareTrade
|
2
|
|
|
(8
|
)
|
|
10
|
|
Allstate Roadside Services
|
(5
|
)
|
|
(3
|
)
|
|
(2
|
)
|
Allstate Dealer Services
|
2
|
|
|
-
|
|
|
2
|
|
Arity
|
(4
|
)
|
|
1
|
|
|
(5
|
)
|
-
SquareTrade revenue was $122 million in the first quarter,
reflecting policies in force growth of 11.9 million compared to the
first quarter of 2017 and the adoption of a new revenue recognition
accounting standard. Adjusted net income is not impacted by the new
accounting standard and was $2 million in the first quarter of 2018
due to improved loss experience.
-
Allstate Roadside Services revenue in the first quarter of 2018
declined 5.1% compared to the prior year quarter, reflecting
non-renewal of unprofitable third-party contracts. An adjusted net
loss of $5 million was realized, due to lower premiums earned and
higher loss costs, partially offset by lower expenses.
-
Allstate Dealer Services revenue grew 6.7% compared to the
first quarter of 2017, and adjusted net income was $2 million,
reflecting improvement in loss costs.
-
Arity had revenues of $21 million in the first quarter of 2018,
largely related to contracts with affiliates. The adjusted net loss of
$4 million represented continuing investments in business expansion
and product development.
-
Allstate Life adjusted net income was $69 million in the first
quarter of 2018, $10 million higher than the prior year quarter,
primarily due to a lower effective tax rate and higher premiums and
contract charges, partially offset by adverse mortality. Premiums and
contract charges increased 1.9% in the first quarter compared to the
prior year quarter, primarily related to growth in traditional life
insurance and lower levels of reinsurance premiums ceded.
-
Allstate Benefits adjusted net income was $28 million in the
first quarter of 2018, $6 million higher than the prior year quarter,
primarily due to higher premiums and contract charges and a lower tax
rate, partially offset by higher contract benefits. Premiums and
contract charges increased 6.3% in the first quarter compared to the
prior year quarter, due to 6.7% growth in policies in force.
-
Allstate Annuities adjusted net income was $35 million in the
first quarter of 2018, $6 million higher than the prior year quarter,
primarily due to higher performance-based income. Policies in force
declined 8.5% in the first quarter of 2018 as the business continues
to run off.
-
Allstate Investments $83 billion portfolio generated net
investment income of $786 million in the first quarter, which was
5.1%, or $38 million, above the prior year quarter.
|
Allstate Investment Results
|
|
Three months ended March 31,
|
($ in millions, except ratios)
|
2018
|
2017
|
% / pts
Change
|
Net investment income
|
$
|
786
|
|
$
|
748
|
|
5.1
|
|
Market-based investment income(1)
|
652
|
|
658
|
|
(0.9
|
)
|
Performance-based investment income(1)
|
181
|
|
131
|
|
38.2
|
|
Realized capital gains and losses
|
(134
|
)
|
134
|
|
NM
|
|
Change in unrealized net capital gains, pre-tax(2)
|
(1,002
|
)
|
331
|
|
NM
|
|
Total return on investment portfolio
|
(0.5
|
)%
|
1.6
|
%
|
(2.1
|
)
|
(1)
|
|
Investment expenses are not allocated between market-based and
performance-based portfolios with the exception of investee level
expenses.
|
(2)
|
|
Excludes $1.2 billion adjustment related to the adoption of
recognition and measurement accounting standard in 2018.
|
NM = not meaningful
|
|
-
Market-based investments contributed $652 million of income in
the first quarter of 2018, primarily from fixed-income securities.
-
Performance-based investments generated income of $181 million
in the first quarter of 2018, which increased 38.2% over the prior
year quarter, primarily reflecting private equity asset appreciation
and continued growth of the performance-based portfolio.
-
Net realized capital losses were $134 million in the first
quarter of 2018, compared to a gain of $134 million in the prior year
quarter. Net realized losses for the quarter primarily consisted of
declines in the valuation of equity investments of $83 million and
losses on sales of $42 million. Beginning in 2018, equity valuation
changes are included in net income due to the adoption of a new
accounting standard.
-
Unrealized net capital gains decreased $1 billion, post
adoption of the new accounting standard, from prior year-end as higher
market yields decreased fixed-income valuations.
-
Total return on the investment portfolio was (0.5)% for the
first quarter of 2018 as the 0.9% contribution from net investment
income was more than offset by a 1.4% decline in the portfolio's
current market value due to higher interest rates, credit spreads and
lower equity prices.
Proactive Capital Management
"Allstate returned $465 million of capital to our shareholders during
the first quarter through a combination of $132 million in common stock
dividends and repurchasing $333 million of outstanding shares. As of
March 31, 2018, there was $935 million remaining on the $2 billion
common share repurchase authorization," said Mario Rizzo, Chief
Financial Officer.
"During the first quarter, Allstate issued $575 million of noncumulative
perpetual preferred stock and $500 million in floating rate senior
notes. The proceeds of these issuances are for general corporate
purposes, including the redemption, repayment or repurchase of certain
preferred stock and debt. Our adjusted net income return on common
shareholders' equity* of 15.0% for the 12 months ended March 31, 2018
was an increase of 3.1 points compared to the prior year period. Book
value per diluted common share of $58.64 was 11.9% higher than March 31,
2017," concluded Rizzo.
Visit www.allstateinvestors.com
to view additional information about Allstate's results, including a
webcast of its quarterly conference call and the call presentation. The
conference call will be held at 9 a.m. ET on Wednesday, May 2.
Forward-Looking Statements
This news release contains "forward-looking statements" that anticipate
results based on our estimates, assumptions and plans that are subject
to uncertainty. These statements are made subject to the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements do not relate strictly to historical or
current facts and may be identified by their use of words like "plans,"
"seeks," "expects," "will," "should," "anticipates," "estimates,"
"intends," "believes," "likely," "targets" and other words with similar
meanings. We believe these statements are based on reasonable estimates,
assumptions and plans. However, if the estimates, assumptions or plans
underlying the forward-looking statements prove inaccurate or if other
risks or uncertainties arise, actual results could differ materially
from those communicated in these forward-looking statements. Factors
that could cause actual results to differ materially from those
expressed in, or implied by, the forward-looking statements may be found
in our filings with the U.S. Securities and Exchange Commission,
including the "Risk Factors" section in our most recent annual report on
Form 10-K. Forward-looking statements are as of the date on which they
are made, and we assume no obligation to update or revise any
forward-looking statement.
|
|
THE ALLSTATE CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
($ in millions, except per share data)
|
|
Three months ended March 31,
|
|
|
2018
|
|
2017
|
|
|
(unaudited)
|
Revenues
|
|
|
|
|
Property and casualty insurance premiums
|
|
$
|
8,286
|
|
|
$
|
7,959
|
|
Life premiums and contract charges
|
|
616
|
|
|
593
|
|
Other revenue
|
|
216
|
|
|
210
|
|
Net investment income
|
|
786
|
|
|
748
|
|
Realized capital gains and losses:
|
|
|
|
|
Total other-than-temporary impairment ("OTTI") losses
|
|
-
|
|
|
(62
|
)
|
OTTI losses reclassified (from) to other comprehensive income
|
|
(1
|
)
|
|
3
|
|
Net OTTI losses recognized in earnings
|
|
(1
|
)
|
|
(59
|
)
|
Sales and valuation changes on equity investments and derivatives
|
|
(133
|
)
|
|
193
|
|
Total realized capital gains and losses
|
|
(134
|
)
|
|
134
|
|
|
|
9,770
|
|
|
9,644
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
Property and casualty insurance claims and claims expense
|
|
5,149
|
|
|
5,416
|
|
Life contract benefits
|
|
504
|
|
|
474
|
|
Interest credited to contractholder funds
|
|
161
|
|
|
173
|
|
Amortization of deferred policy acquisition costs
|
|
1,273
|
|
|
1,169
|
|
Operating costs and expenses
|
|
1,355
|
|
|
1,307
|
|
Restructuring and related charges
|
|
22
|
|
|
10
|
|
Interest expense
|
|
83
|
|
|
85
|
|
|
|
8,547
|
|
|
8,634
|
|
|
|
|
|
|
Gain on disposition of operations
|
|
1
|
|
|
2
|
|
|
|
|
|
|
Income from operations before income tax expense
|
|
1,224
|
|
|
1,012
|
|
|
|
|
|
|
Income tax expense
|
|
249
|
|
|
317
|
|
|
|
|
|
|
Net income
|
|
975
|
|
|
695
|
|
|
|
|
|
|
Preferred stock dividends
|
|
29
|
|
|
29
|
|
|
|
|
|
|
Net income applicable to common shareholders
|
|
$
|
946
|
|
|
$
|
666
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
Net income applicable to common shareholders per common share -
Basic
|
|
$
|
2.67
|
|
|
$
|
1.82
|
|
|
|
|
|
|
Weighted average common shares - Basic
|
|
354.1
|
|
|
365.7
|
|
|
|
|
|
|
Net income applicable to common shareholders per common share -
Diluted
|
|
$
|
2.63
|
|
|
$
|
1.79
|
|
|
|
|
|
|
Weighted average common shares - Diluted
|
|
359.9
|
|
|
371.3
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.46
|
|
|
$
|
0.37
|
|
|
|
THE ALLSTATE CORPORATION
|
BUSINESS RESULTS
|
|
|
|
|
($ in millions, except ratios)
|
|
|
Three months ended March 31,
|
|
|
|
2018
|
|
2017
|
Property-Liability
|
|
|
|
|
|
Premiums written
|
|
|
$
|
7,844
|
|
|
$
|
7,469
|
|
Premiums earned
|
|
|
$
|
8,019
|
|
|
$
|
7,759
|
|
Other revenue
|
|
|
174
|
|
|
167
|
|
Claims and claims expense
|
|
|
(5,058
|
)
|
|
(5,328
|
)
|
Amortization of deferred policy acquisition costs
|
|
|
(1,088
|
)
|
|
(1,022
|
)
|
Operating costs and expenses
|
|
|
(1,067
|
)
|
|
(1,018
|
)
|
Restructuring and related charges
|
|
|
(21
|
)
|
|
(10
|
)
|
Underwriting income
|
|
|
959
|
|
|
548
|
|
Net investment income
|
|
|
337
|
|
|
308
|
|
Income tax expense on operations
|
|
|
(268
|
)
|
|
(268
|
)
|
Realized capital gains and losses, after-tax
|
|
|
(75
|
)
|
|
89
|
|
Net income applicable to common shareholders
|
|
|
$
|
953
|
|
|
$
|
677
|
|
Catastrophe losses
|
|
|
$
|
361
|
|
|
$
|
781
|
|
Amortization of purchased intangible assets
|
|
|
$
|
1
|
|
|
$
|
2
|
|
Operating ratios:
|
|
|
|
|
|
Claims and claims expense ratio
|
|
|
63.0
|
|
|
68.6
|
|
Expense ratio (1)
|
|
|
25.0
|
|
|
24.3
|
|
Combined ratio
|
|
|
88.0
|
|
|
92.9
|
|
Effect of catastrophe losses on combined ratio
|
|
|
4.5
|
|
|
10.1
|
|
Effect of prior year reserve reestimates on combined ratio
|
|
|
(0.7
|
)
|
|
(1.3
|
)
|
|
|
|
|
|
|
Services Businesses
|
|
|
|
|
|
Premiums written
|
|
|
$
|
287
|
|
|
$
|
254
|
|
Premiums earned
|
|
|
$
|
267
|
|
|
$
|
200
|
|
Intersegment insurance premiums and service fees
|
|
|
29
|
|
|
28
|
|
Other revenue
|
|
|
16
|
|
|
16
|
|
Net investment income
|
|
|
5
|
|
|
3
|
|
Claims and claims expense
|
|
|
(93
|
)
|
|
(90
|
)
|
Amortization of deferred policy acquisition costs
|
|
|
(110
|
)
|
|
(68
|
)
|
Operating costs and expenses
|
|
|
(119
|
)
|
|
(104
|
)
|
Restructuring and related charges
|
|
|
(1
|
)
|
|
-
|
|
Income tax benefit on operations
|
|
|
1
|
|
|
5
|
|
Adjusted net loss
|
|
|
(5
|
)
|
|
(10
|
)
|
Realized capital gains and losses, after-tax
|
|
|
(3
|
)
|
|
-
|
|
Amortization of purchased intangible assets, after-tax
|
|
|
(16
|
)
|
|
(15
|
)
|
Net loss applicable to common shareholders
|
|
|
$
|
(24
|
)
|
|
$
|
(25
|
)
|
|
|
|
|
|
|
Allstate Life
|
|
|
|
|
|
Premiums and contract charges
|
|
|
$
|
327
|
|
|
$
|
321
|
|
Other revenue
|
|
|
26
|
|
|
27
|
|
Net investment income
|
|
|
122
|
|
|
120
|
|
Contract benefits
|
|
|
(205
|
)
|
|
(195
|
)
|
Interest credited to contractholder funds
|
|
|
(70
|
)
|
|
(69
|
)
|
Amortization of deferred policy acquisition costs
|
|
|
(31
|
)
|
|
(32
|
)
|
Operating costs and expenses
|
|
|
(86
|
)
|
|
(86
|
)
|
Income tax expense on operations
|
|
|
(14
|
)
|
|
(27
|
)
|
Adjusted net income
|
|
|
69
|
|
|
59
|
|
Realized capital gains and losses, after-tax
|
|
|
(2
|
)
|
|
1
|
|
DAC and DSI amortization relating to realized capital gains and
losses, after-tax
|
|
|
(2
|
)
|
|
(3
|
)
|
Net income applicable to common shareholders
|
|
|
$
|
65
|
|
|
$
|
57
|
|
|
|
|
|
|
|
(1) Other revenue is deducted from operating costs and
expenses in the expense ratio calculation.
|
|
|
|
THE ALLSTATE CORPORATION
|
BUSINESS RESULTS
|
|
|
|
|
($ in millions, except ratios)
|
|
|
Three months ended March 31,
|
|
|
|
2018
|
|
2017
|
Allstate Benefits
|
|
|
|
|
|
Premiums and contract charges
|
|
|
$
|
286
|
|
|
$
|
269
|
|
Net investment income
|
|
|
19
|
|
|
17
|
|
Contract benefits
|
|
|
(149
|
)
|
|
(136
|
)
|
Interest credited to contractholder funds
|
|
|
(8
|
)
|
|
(9
|
)
|
Amortization of deferred policy acquisition costs
|
|
|
(41
|
)
|
|
(41
|
)
|
Operating costs and expenses
|
|
|
(72
|
)
|
|
(67
|
)
|
Income tax expense on operations
|
|
|
(7
|
)
|
|
(11
|
)
|
Adjusted net income
|
|
|
28
|
|
|
22
|
|
Realized capital gains and losses, after-tax
|
|
|
(2
|
)
|
|
-
|
|
Net income applicable to common shareholders
|
|
|
$
|
26
|
|
|
$
|
22
|
|
|
|
|
|
|
|
Allstate Annuities
|
|
|
|
|
|
Contract charges
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Net investment income
|
|
|
290
|
|
|
289
|
|
Contract benefits
|
|
|
(150
|
)
|
|
(143
|
)
|
Interest credited to contractholder funds
|
|
|
(87
|
)
|
|
(95
|
)
|
Amortization of deferred policy acquisition costs
|
|
|
(1
|
)
|
|
(2
|
)
|
Operating costs and expenses
|
|
|
(9
|
)
|
|
(9
|
)
|
Income tax expense on operations
|
|
|
(11
|
)
|
|
(14
|
)
|
Adjusted net income
|
|
|
35
|
|
|
29
|
|
Realized capital gains and losses, after-tax
|
|
|
(23
|
)
|
|
(2
|
)
|
Valuation changes on embedded derivatives not hedged, after-tax
|
|
|
4
|
|
|
-
|
|
Gain on disposition of operations, after-tax
|
|
|
1
|
|
|
2
|
|
Net income applicable to common shareholders
|
|
|
$
|
17
|
|
|
$
|
29
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
|
|
Net investment income
|
|
|
$
|
13
|
|
|
$
|
11
|
|
Operating costs and expenses
|
|
|
(8
|
)
|
|
(8
|
)
|
Interest expense
|
|
|
(83
|
)
|
|
(85
|
)
|
Income tax benefit on operations
|
|
|
17
|
|
|
30
|
|
Preferred stock dividends
|
|
|
(29
|
)
|
|
(29
|
)
|
Adjusted net loss
|
|
|
(90
|
)
|
|
(81
|
)
|
Realized capital gains and losses, after-tax
|
|
|
(1
|
)
|
|
-
|
|
Business combination expenses, after-tax
|
|
|
-
|
|
|
(13
|
)
|
Net loss applicable to common shareholders
|
|
|
$
|
(91
|
)
|
|
$
|
(94
|
)
|
|
|
|
|
|
|
Consolidated net income applicable to common shareholders
|
|
|
$
|
946
|
|
|
$
|
666
|
|
|
|
THE ALLSTATE CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
|
|
|
|
($ in millions, except par value data)
|
|
|
March 31, 2018
|
|
December 31, 2017
|
Assets
|
|
|
(unaudited)
|
|
|
Investments:
|
|
|
|
|
|
Fixed income securities, at fair value (amortized cost $56,209 and
$57,525)
|
|
|
$
|
56,674
|
|
|
$
|
58,992
|
|
Equity securities, at fair value (cost $5,928 and $5,461)
|
|
|
6,986
|
|
|
6,621
|
|
Mortgage loans
|
|
|
4,679
|
|
|
4,534
|
|
Limited partnership interests
|
|
|
7,434
|
|
|
6,740
|
|
Short-term, at fair value (amortized cost $3,424 and $1,944)
|
|
|
3,424
|
|
|
1,944
|
|
Other
|
|
|
4,092
|
|
|
3,972
|
|
Total investments
|
|
|
83,289
|
|
|
82,803
|
|
Cash
|
|
|
450
|
|
|
617
|
|
Premium installment receivables, net
|
|
|
5,856
|
|
|
5,786
|
|
Deferred policy acquisition costs
|
|
|
4,409
|
|
|
4,191
|
|
Reinsurance recoverables, net
|
|
|
8,916
|
|
|
8,921
|
|
Accrued investment income
|
|
|
576
|
|
|
569
|
|
Property and equipment, net
|
|
|
1,060
|
|
|
1,072
|
|
Goodwill
|
|
|
2,189
|
|
|
2,181
|
|
Other assets
|
|
|
3,230
|
|
|
2,838
|
|
Separate Accounts
|
|
|
3,314
|
|
|
3,444
|
|
Total assets
|
|
|
$
|
113,289
|
|
|
$
|
112,422
|
|
Liabilities
|
|
|
|
|
|
Reserve for property and casualty insurance claims and claims expense
|
|
|
$
|
26,115
|
|
|
$
|
26,325
|
|
Reserve for life-contingent contract benefits
|
|
|
12,333
|
|
|
12,549
|
|
Contractholder funds
|
|
|
19,139
|
|
|
19,434
|
|
Unearned premiums
|
|
|
13,448
|
|
|
13,473
|
|
Claim payments outstanding
|
|
|
865
|
|
|
875
|
|
Deferred income taxes
|
|
|
725
|
|
|
782
|
|
Other liabilities and accrued expenses
|
|
|
7,226
|
|
|
6,639
|
|
Long-term debt
|
|
|
6,847
|
|
|
6,350
|
|
Separate Accounts
|
|
|
3,314
|
|
|
3,444
|
|
Total liabilities
|
|
|
90,012
|
|
|
89,871
|
|
Shareholders' equity
|
|
|
|
|
|
Preferred stock and additional capital paid-in, $1 par value, 95.2
thousand and 72.2 thousand shares issued and outstanding, $2,380 and
$1,805 aggregate liquidation preference
|
|
|
2,303
|
|
|
1,746
|
|
Common stock, $.01 par value, 900 million issued, 352 million and
355 million shares outstanding
|
|
|
9
|
|
|
9
|
|
Additional capital paid-in
|
|
|
3,367
|
|
|
3,313
|
|
Retained income
|
|
|
45,031
|
|
|
43,162
|
|
Deferred ESOP expense
|
|
|
(3
|
)
|
|
(3
|
)
|
Treasury stock, at cost (548 million and 545 million shares)
|
|
|
(26,280
|
)
|
|
(25,982
|
)
|
Accumulated other comprehensive income:
|
|
|
|
|
|
Unrealized net capital gains and losses:
|
|
|
|
|
|
Unrealized net capital gains and losses on fixed income securities
with OTTI
|
|
|
84
|
|
|
85
|
|
Other unrealized net capital gains and losses
|
|
|
283
|
|
|
1,981
|
|
Unrealized adjustment to DAC, DSI and insurance reserves
|
|
|
(180
|
)
|
|
(404
|
)
|
Unrealized net capital gains and losses
|
|
|
187
|
|
|
1,662
|
|
Unrealized foreign currency translation adjustments
|
|
|
(13
|
)
|
|
(9
|
)
|
Unrecognized pension and other postretirement benefit cost
|
|
|
(1,324
|
)
|
|
(1,347
|
)
|
Total accumulated other comprehensive income
|
|
|
(1,150
|
)
|
|
306
|
|
Total shareholders' equity
|
|
|
23,277
|
|
|
22,551
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
113,289
|
|
|
$
|
112,422
|
|
|
|
THE ALLSTATE CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
($ in millions)
|
Three months ended March 31,
|
|
2018
|
|
2017
|
Cash flows from operating activities
|
(unaudited)
|
Net income
|
$
|
975
|
|
|
$
|
695
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Depreciation, amortization and other non-cash items
|
122
|
|
|
119
|
|
Realized capital gains and losses
|
134
|
|
|
(134
|
)
|
Gain on disposition of operations
|
(1
|
)
|
|
(2
|
)
|
Interest credited to contractholder funds
|
161
|
|
|
173
|
|
Changes in:
|
|
|
|
Policy benefits and other insurance reserves
|
(364
|
)
|
|
183
|
|
Unearned premiums
|
(204
|
)
|
|
(248
|
)
|
Deferred policy acquisition costs
|
10
|
|
|
14
|
|
Premium installment receivables, net
|
(58
|
)
|
|
(19
|
)
|
Reinsurance recoverables, net
|
(12
|
)
|
|
11
|
|
Income taxes
|
181
|
|
|
284
|
|
Other operating assets and liabilities
|
(318
|
)
|
|
(219
|
)
|
Net cash provided by operating activities
|
626
|
|
|
857
|
|
Cash flows from investing activities
|
|
|
|
Proceeds from sales
|
|
|
|
Fixed income securities
|
10,619
|
|
|
7,083
|
|
Equity securities
|
1,138
|
|
|
2,601
|
|
Limited partnership interests
|
53
|
|
|
210
|
|
Other investments
|
76
|
|
|
24
|
|
Investment collections
|
|
|
|
Fixed income securities
|
583
|
|
|
1,029
|
|
Mortgage loans
|
46
|
|
|
223
|
|
Other investments
|
122
|
|
|
174
|
|
Investment purchases
|
|
|
|
Fixed income securities
|
(9,789
|
)
|
|
(8,800
|
)
|
Equity securities
|
(1,535
|
)
|
|
(2,383
|
)
|
Limited partnership interests
|
(415
|
)
|
|
(268
|
)
|
Mortgage loans
|
(192
|
)
|
|
(86
|
)
|
Other investments
|
(330
|
)
|
|
(219
|
)
|
Change in short-term investments, net
|
(1,533
|
)
|
|
1,572
|
|
Change in other investments, net
|
(27
|
)
|
|
(10
|
)
|
Purchases of property and equipment, net
|
(62
|
)
|
|
(74
|
)
|
Acquisition of operations
|
(5
|
)
|
|
(1,356
|
)
|
Net cash used in investing activities
|
(1,251
|
)
|
|
(280
|
)
|
Cash flows from financing activities
|
|
|
|
Proceeds from issuance of long-term debt
|
498
|
|
|
-
|
|
Proceeds from issuance of preferred stock
|
558
|
|
|
-
|
|
Contractholder fund deposits
|
253
|
|
|
257
|
|
Contractholder fund withdrawals
|
(492
|
)
|
|
(483
|
)
|
Dividends paid on common stock
|
(132
|
)
|
|
(122
|
)
|
Dividends paid on preferred stock
|
(29
|
)
|
|
(29
|
)
|
Treasury stock purchases
|
(270
|
)
|
|
(264
|
)
|
Shares reissued under equity incentive plans, net
|
10
|
|
|
67
|
|
Other
|
62
|
|
|
3
|
|
Net cash provided by (used in) financing activities
|
458
|
|
|
(571
|
)
|
Net (decrease) increase in cash
|
(167
|
)
|
|
6
|
|
Cash at beginning of period
|
617
|
|
|
436
|
|
Cash at end of period
|
$
|
450
|
|
|
$
|
442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Adjusted net 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
adjusted net income,
-
valuation changes on embedded derivatives 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 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 adjusted net income.
We use adjusted net 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 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 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, adjusted net 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 adjusted
net 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, adjusted net
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 adjusted net 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. Adjusted net 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 adjusted net income
in incentive compensation. Therefore, we believe it is useful for
investors to evaluate net income applicable to common shareholders,
adjusted net 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 adjusted net 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 adjusted net income as the
denominator. Adjusted net 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 adjusted net income. Beginning January 1, 2018, the Tax
Legislation reduced the U.S. corporate income tax rate from 35% to 21%.
Taxes on adjustments to reconcile net income applicable to common
shareholders and adjusted net income generally use a 21% effective tax
rate for first quarter 2018 and 35% for first quarter 2017 and are
reported net with the reconciling adjustment.
|
|
|
($ in millions, except per share data)
|
|
Three months ended March 31,
|
|
|
Property-Liability
|
|
Consolidated
|
|
Per diluted common share
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income applicable to common shareholders
|
|
$
|
953
|
|
|
$
|
677
|
|
|
$
|
946
|
|
|
$
|
666
|
|
|
$
|
2.63
|
|
|
$
|
1.79
|
|
Realized capital gains and losses, after-tax
|
|
75
|
|
|
(89
|
)
|
|
106
|
|
|
(88
|
)
|
|
0.29
|
|
|
(0.24
|
)
|
Valuation changes on embedded derivatives not hedged, after-tax
|
|
-
|
|
|
-
|
|
|
(4
|
)
|
|
-
|
|
|
(0.01
|
)
|
|
-
|
|
DAC and DSI amortization relating to realized capital gains and
losses and valuation changes on embedded derivatives not hedged,
after-tax
|
|
-
|
|
|
-
|
|
|
2
|
|
|
3
|
|
|
-
|
|
|
0.01
|
|
Reclassification of periodic settlements and accruals on non-hedge
derivative instruments, after-tax
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Business combination expenses and the amortization of purchased
intangible assets, after-tax
|
|
1
|
|
|
1
|
|
|
17
|
|
|
29
|
|
|
0.05
|
|
|
0.08
|
|
Gain on disposition of operations, after-tax
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
|
(2
|
)
|
|
-
|
|
|
-
|
|
Adjusted net income*
|
|
$
|
1,029
|
|
|
$
|
589
|
|
|
$
|
1,066
|
|
|
$
|
608
|
|
|
$
|
2.96
|
|
|
$
|
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income return on common shareholders' equity is a
ratio that uses a non-GAAP measure. It is calculated by dividing the
rolling 12-month adjusted net 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 adjusted net income as the numerator for the same
reasons we use adjusted net 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 adjusted net 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
adjusted net income return on common shareholders' equity in incentive
compensation. Therefore, we believe it is useful for investors to have
adjusted net 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 adjusted net 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. Adjusted net 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
adjusted net income return on common shareholders' equity.
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
For the twelve months ended
March 31,
|
|
|
|
|
|
2018
|
|
2017
|
Return on common shareholders' equity
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
|
Net income applicable to common shareholders
|
|
|
|
|
$
|
3,353
|
|
|
$
|
2,210
|
|
Denominator:
|
|
|
|
|
|
|
|
Beginning common shareholders' equity (1)
|
|
|
|
|
$
|
19,412
|
|
|
$
|
18,594
|
|
Ending common shareholders' equity (1)
|
|
|
|
|
20,974
|
|
|
19,412
|
|
Average common shareholders' equity
|
|
|
|
|
$
|
20,193
|
|
|
$
|
19,003
|
|
Return on common shareholders' equity
|
|
|
|
|
16.6
|
%
|
|
11.6
|
%
|
|
|
|
($ in millions)
|
|
For the twelve months ended March 31,
|
|
|
2018
|
|
2017
|
Adjusted net income return on common shareholders' equity
|
|
|
|
|
Numerator:
|
|
|
|
|
Adjusted net income
|
|
$
|
2,925
|
|
|
$
|
2,124
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
Beginning common shareholders' equity
|
|
$
|
19,412
|
|
|
$
|
18,594
|
|
Less: Unrealized net capital gains and losses
|
|
1,256
|
|
|
1,200
|
|
Adjusted beginning common shareholders' equity
|
|
18,156
|
|
|
17,394
|
|
|
|
|
|
|
Ending common shareholders' equity
|
|
20,974
|
|
|
19,412
|
|
Less: Unrealized net capital gains and losses
|
|
187
|
|
|
1,256
|
|
Adjusted ending common shareholders' equity
|
|
20,787
|
|
|
18,156
|
|
Average adjusted common shareholders' equity
|
|
$
|
19,472
|
|
|
$
|
17,775
|
|
Adjusted net income return on common shareholders' equity *
|
|
15.0
|
%
|
|
11.9
|
%
|
_____________
|
(1)
|
|
Excludes equity related to preferred stock of $2,303 million as of
March 31, 2018 and $1,746 million as of March 31, 2017 and March 31,
2016.
|
|
|
|
|
|
|
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 March 31,
|
|
2018
|
|
2017
|
Combined ratio
|
88.0
|
|
|
92.9
|
|
Effect of catastrophe losses
|
(4.5
|
)
|
|
(10.1
|
)
|
Effect of prior year non-catastrophe reserve reestimates
|
0.7
|
|
|
1.3
|
|
Underlying combined ratio*
|
84.2
|
|
|
84.1
|
|
|
|
|
|
Effect of prior year catastrophe reserve reestimates
|
-
|
|
|
-
|
|
Underwriting margin is calculated as 100% minus the combined ratio.
|
|
Allstate brand - Total
|
Three months ended March 31,
|
|
2018
|
|
2017
|
Combined ratio
|
86.9
|
|
|
91.6
|
|
Effect of catastrophe losses
|
(4.5
|
)
|
|
(10.0
|
)
|
Effect of prior year non-catastrophe reserve reestimates
|
0.8
|
|
|
1.5
|
|
Underlying combined ratio*
|
83.2
|
|
|
83.1
|
|
|
|
|
|
Effect of prior year catastrophe reserve reestimates
|
-
|
|
|
-
|
|
|
|
Allstate brand - Auto Insurance
|
Three months ended March 31,
|
|
2018
|
|
2017
|
Combined ratio
|
88.5
|
|
|
90.7
|
|
Effect of catastrophe losses
|
-
|
|
|
(1.4
|
)
|
Effect of prior year non-catastrophe reserve reestimates
|
1.5
|
|
|
1.6
|
|
Underlying combined ratio*
|
90.0
|
|
|
90.9
|
|
|
|
|
|
Effect of prior year catastrophe reserve reestimates
|
(0.5
|
)
|
|
(0.2
|
)
|
|
|
Allstate brand - Homeowners Insurance
|
Three months ended March 31,
|
|
2018
|
|
2017
|
Combined ratio
|
80.8
|
|
|
93.7
|
|
Effect of catastrophe losses
|
(17.3
|
)
|
|
(34.1
|
)
|
Effect of prior year non-catastrophe reserve reestimates
|
-
|
|
|
1.7
|
|
Underlying combined ratio*
|
63.5
|
|
|
61.3
|
|
|
|
|
|
Effect of prior year catastrophe reserve reestimates
|
1.6
|
|
|
0.1
|
|
Allstate brand - Other Personal Lines
|
Three months ended March 31,
|
|
2018
|
|
2017
|
Combined ratio
|
89.0
|
|
|
93.1
|
|
Effect of catastrophe losses
|
(6.4
|
)
|
|
(14.6
|
)
|
Effect of prior year non-catastrophe reserve reestimates
|
0.7
|
|
|
0.3
|
|
Underlying combined ratio*
|
83.3
|
|
|
78.8
|
|
|
|
|
|
Effect of prior year catastrophe reserve reestimates
|
(0.7
|
)
|
|
1.8
|
|
|
|
Esurance brand - Total
|
Three months ended March 31,
|
|
2018
|
|
2017
|
Combined ratio
|
99.3
|
|
|
102.4
|
|
Effect of catastrophe losses
|
(0.7
|
)
|
|
(1.9
|
)
|
Effect of prior year non-catastrophe reserve reestimates
|
-
|
|
|
-
|
|
Effect of amortization of purchased intangible assets
|
(0.2
|
)
|
|
(0.3
|
)
|
Underlying combined ratio*
|
98.4
|
|
|
100.2
|
|
|
|
|
|
Effect of prior year catastrophe reserve reestimates
|
-
|
|
|
-
|
|
|
|
Encompass brand - Total
|
Three months ended March 31,
|
|
2018
|
|
2017
|
Combined ratio
|
98.4
|
|
|
111.7
|
|
Effect of catastrophe losses
|
(11.3
|
)
|
|
(23.7
|
)
|
Effect of prior year non-catastrophe reserve reestimates
|
0.8
|
|
|
(1.4
|
)
|
Underlying combined ratio*
|
87.9
|
|
|
86.6
|
|
|
|
|
|
Effect of prior year catastrophe reserve reestimates
|
3.1
|
|
|
0.7
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180501006952/en/
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