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Dec 31, 2019

Allstate Q4 2019 Earnings Report

Allstate had excellent operating results in 2019, while revenues and net income increased due to strong operating results.

Key Takeaways

Allstate reported excellent operating results in 2019. Revenues reached $44.7 billion and net income was $4.7 billion for the year. Adjusted net income was $1.0 billion ($3.13 per share) for the fourth quarter, substantially higher than the previous year, reflecting excellent underlying auto and homeowners insurance profitability and lower catastrophe losses.

Total revenue of $11.47 billion in the fourth quarter of 2019 increased 21.0% compared to the prior year quarter.

Property-Liability insurance premiums earned increased 5.4%.

Net income applicable to common shareholders was $1.71 billion, or $5.23 per diluted share, in the fourth quarter of 2019, compared to a net loss of $585 million, or $1.71 per diluted share, in the fourth quarter of 2018.

Adjusted net income of $1.02 billion, or $3.13 per diluted share, for the fourth quarter of 2019 was above the prior year quarter, primarily due to lower catastrophe losses.

Total Revenue
$9.19B
Previous year: $8.86B
+3.7%
EPS
$3.13
Previous year: $1.24
+152.4%
Property-Liability Combined Ratio
88.7%
Property-Liability Underlying Combined Ratio
84.9%
Gross Profit
$39B
Previous year: $33.9B
+14.8%
Cash and Equivalents
$338M
Previous year: $425M
-20.5%
Free Cash Flow
$1.09B
Previous year: $1.28B
-14.2%
Total Assets
$120B
Previous year: $112B
+6.9%

Allstate

Allstate

Allstate Revenue by Segment

Forward Guidance

Allstate's Transformative Growth Plan aims to increase market share and provide customers with a circle of protection. The plan focuses on increasing customer access, enhancing customer value, and investing in growth.

Positive Outlook

  • Customer access is being expanded by leveraging Esurance’s highly successful direct sales capabilities for the Allstate brand.
  • Increased customer value will be provided by lowering expenses to improve affordability while investing in technology and marketing.

Revenue & Expenses

Visualization of income flow from segment revenue to net income