Allstate Reports $312 Million Loss in Q4

February 6, 2019

The Allstate Corp. lost $312 million in its 2018 fourth quarter, hammered by higher catastrophe losses, a drop in investment income and a larger pension settlement charge.

Still, the losses could have been higher. The Illinois-based property/casualty insurer said that higher premiums earned and reduced auto insurance accident frequency partially offset its Q4 financial hits.

Tom Wilson, Allstate’s chairman, president and CEO, said that catastrophe hits aside, the insurer has otherwise strong operating results and continues to generate progress on long-term plans.

“Allstate continues to deliver strong operating results while building the future,” Wilson said in prepared remarks. “The strategy to grow market share in personal protection is working with growth in auto and home insurance, workplace benefits and protection plans. We also expanded identity protection by acquiring InfoArmor.”

Wilson also noted that the company’s full-year revenues grew to $40.7 billion, excluding realized capital gains and losses. Policies in force also increased, he said.

Allstate’s Q4 results translated to a loss of $0.91 per share. In the 2017 fourth quarter, the insurer booked $1.2 billion in net income, or $3.35 per diluted share.

For Q4, Allstate’s property liability combined ratio was 97, compared to 91 in the same, year-ago quarter. Catastrophe losses hit $963 million, versus just under $600 million in Q4 2017.

Allstate’s net investment income reached $786 million for Q4, down from $913 million in the 2017 fourth quarter and a nearly 14 percent drop.

Here are other Q4 and year-end highlights:

Source: Allstate