NYSE$ALL

Allstate Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Allstate demonstrated resilience and adaptability, delivering strong financial results amidst the coronavirus pandemic.

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.

Headline financials

Total Revenue

$11.2B

Previous: $11.1B+0.5%
EPS (adj)

$2.46

Previous: $2.18+12.8%
P&C Combined Ratio

89.8%

Previous: 95.8%-6.3%
Capital Expenditures

-$166M

Previous: -$173M+4.0%
Free Cash Flow

$1.08B

Previous: $678M+59.9%
Net Income

$1.25B

Previous: $851M+46.9%
Operating Income

$8.15B

Previous: $8.15B+0.0%
Gross Profit

$9.65B

Previous: $9.63B+0.2%
Cash & Equivalents

$547M

Previous: $599M-8.7%
Total Assets

$121B

Previous: $118B+2.4%

Revenue & EPS history

Allstate · Revenue · Quarterly

$11.2B

Q2 2020+0.5%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Allstate · $607M total across 4 segments · Q1 2023

  • Protection Plans
    $385M
  • Dealer Services
    $148M
  • Arity
    $37M
  • Identity Protection
    $37M

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.

Tailwinds

  • 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

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.1%

Avg return

30 days after

53%

39 / 73 earnings

Positive

+5.7%

Q2 2025

Best reaction

-9.9%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+2.9%-2.8%
Q4 2025+3.9%-2.9%+2.5%
Q3 2025+1.5%+6.5%+3.9%
Q2 2025+5.7%+6.9%+5.8%
Q1 2025-0.6%+1.8%+5.8%
Q4 2024-0.6%-1.9%+4.0%
Q3 2024-0.0%-2.3%+11.2%
Q2 2024+2.2%-2.6%+8.8%
Q1 2024-0.5%+0.0%-1.5%
Q4 2023+2.8%+1.3%-0.3%
Q3 2023+2.5%+1.9%+7.5%
Q2 2023-5.5%-2.5%-4.3%
Q1 2023+1.5%+3.3%-2.1%
Q4 2022+2.7%-7.6%-0.3%
Q3 2022-1.4%+2.4%+4.1%
Q2 2022-1.5%+2.2%+5.0%
Q1 2022+1.4%-0.6%+1.7%
Q4 2021+2.5%+5.1%+7.4%
Q3 2021-6.5%-6.5%-13.5%
Q2 2021-2.1%+1.5%+2.5%
Q1 2021+3.7%+5.2%+6.6%
Q4 2020-3.3%-3.1%+0.7%
Q3 2020-2.7%+1.0%+12.3%
Q2 2020-1.5%+0.7%-3.0%
Q1 2020+1.1%+0.4%+1.5%
Q4 2019+4.7%+4.5%-8.9%
Q3 2019-1.5%-0.7%+5.1%
Q2 2019+5.5%+2.7%+0.4%
Q1 2019-0.8%-1.4%-3.6%
Q4 2018+4.2%+4.1%+5.0%
Q3 2018-5.8%-5.3%-6.6%
Q2 2018+2.5%+3.4%+5.7%
Q1 2018-3.8%-3.4%-4.4%
Q4 2017-6.8%-6.1%-0.6%
Q3 2017+4.3%+5.6%+9.8%
Q2 2017+3.5%+3.5%-0.5%
Q1 2017+0.6%-0.9%+2.0%
Q4 2016+2.9%+3.8%+8.8%
Q3 2016+1.3%-0.5%+5.1%
Q2 2016+0.7%+1.6%+1.2%
Q1 2016+3.8%
Q4 2015+3.5%
Q3 2015+2.1%
Q2 2015-9.9%
Q1 2015-3.6%
Q4 2014+0.4%
Q3 2014+1.1%
Q2 2014+2.5%
Q1 2014+1.2%
Q4 2013+4.9%
Q3 2013-0.6%
Q2 2013+2.6%
Q1 2013-2.1%
Q4 2012+1.7%
Q3 2012-2.7%
Q4 2011+4.7%
Q2 2012+4.7%
Q1 2012+2.5%
Q3 2011-3.9%
Q2 2011-0.3%
Q1 2011-1.3%
Q4 2010-0.1%
Q3 2010-6.9%
Q2 2010-0.4%
Q1 2009+0.0%
Q1 2010+1.3%
Q4 2009-0.1%
Q4 2007-0.1%
Q3 2009-2.3%
Q3 2008-2.3%
Q2 2009+0.5%
Q2 2008+0.5%
Q4 2008+0.5%

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