Allstate’s Q1 Net Income Plunged, with Hailstorms to Blame

May 6, 2016

ALLSTATE INSURANCE COMPANY LOGOThe 2016 first quarter (and two severe hailstorms) left its mark on the Allstate Corp., with net income during the period plunging more than 65 percent. Echoing trends from other property/casualty insurers, net investment income also took a dive.

As expected, the property/casualty insurer booked $827 million in catastrophe losses in Q1, versus $294 million over the same period in 2015. That mega-catastrophe hit led to $217 million in net income applicable to common shareholders, or $0.57 per diluted common share, down from $648 million in Q1 2015, or $1.53 per diluted common share and a drop of 66.5 percent.

With catastrophes factored in, Allstate’s property-liability combined ratio jumped to 98.4, compared to 93.7 in the 2015 first quarter.

Alongside those numbers, net investment income hit $731 million during the quarter, a 14 percent drop from the prior year quarter.

Allstate Chairman and CEO Thomas Wilson noted in prepared remarks that the insurer’s “broad-based business model enabled us to cover the costs of two severe hailstorms” and still produce $322 million in operating income during the quarter.

Here are some highlights of the Allstate results:

Source: Allstate