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Jun 30, 2020
Allstate Q2 2020 Earnings Report
Allstate demonstrated resilience and adaptability, delivering strong financial results amidst the coronavirus pandemic.
Key Takeaways
Allstate reported excellent financial results for Q2 2020, with revenues of $11.2 billion and net income of $1.2 billion. The Property-Liability combined ratio was 89.8, offsetting the negative impact of the pandemic on investment income and life mortality. Allstate Protection Plans' adjusted net income increased significantly, and shareholders benefited from a 17.9% adjusted net income return on equity.
Total revenue increased by 0.5% to $11.2 billion, driven by net realized capital gains and growth in Property-Liability insurance premiums.
Net income applicable to common shareholders was $1.22 billion, or $3.86 per diluted share, due to increased underwriting income and higher net realized capital gains.
The Property-Liability combined ratio was 89.8, with underwriting income increasing by $537 million compared to the prior year quarter.
Allstate Protection Plans experienced rapid growth, with policies in force increasing 43% from the prior year.
Forward Guidance
Allstate's strong capital position and earnings power enable investments in profitable growth and provide ongoing cash returns to shareholders. The acquisition of National General Holdings Corp. will enhance Allstate's strategic position in the independent agent channel and will not impact the $3 billion share repurchase program.
Positive Outlook
- Investments in profitable growth
- Ongoing cash returns to shareholders
- Enhanced strategic position in the independent agent channel
- Share repurchase program completion by the end of 2021
- Strong capital position and earnings power
Historical Earnings Impact
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Avg. Return Before/After Earnings
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