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Sep 30, 2021
Allstate Q3 2021 Earnings Report
Allstate's operational expertise addressed inflation in auto repair costs while executing their Transformative Growth strategy.
Key Takeaways
Allstate reported total revenues of $12.5 billion and net income of $508 million. Adjusted net income per share was $0.73. The company faced challenges in auto insurance due to supply chain disruptions and increased used car and parts prices, but strategic initiatives like Transformative Growth and catastrophe risk management benefited results.
Total revenues increased 16.9% to $12.5 billion, driven by higher earned premiums and increased net investment income.
Net income applicable to common shareholders decreased to $508 million, primarily due to lower underwriting income.
Adjusted net income decreased to $217 million, reflecting higher non-catastrophe losses in auto and homeowners insurance and increased catastrophe losses.
Transformative Growth strategy and National General acquisition contributed to cost reductions and market share growth.
Allstate
Allstate
Forward Guidance
Allstate's proactive capital deployment provides top tier cash returns to shareholders while funding growth. Allstate returned nearly $1.5 billion to shareholders in the third quarter. The divestiture of Allstate Life Insurance Company increased deployable capital by $1.7 billion and reduced interest rate risk. SafeAuto was acquired on October 1, 2021 to consolidate into National General’s platform, further increasing personal lines market share.
Positive Outlook
- Proactive capital deployment provides top tier cash returns to shareholders while funding growth
- Returned nearly $1.5 billion to shareholders in the third quarter
- Executed a $750 million accelerated share repurchase program as part of the current $5 billion authorization
- Divestiture of Allstate Life Insurance Company was completed
- Sale of Allstate Life Insurance Company of New York increased deployable capital by $1.7 billion and reduced interest rate risk
Challenges Ahead
- Forward-looking statements are subject to uncertainty
- Estimates, assumptions, and plans are subject to uncertainty
- Actual results could differ materially from those communicated in forward-looking statements
- Factors that could cause actual results to differ materially may be found in filings
- These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995