NYSE$ALL

Allstate Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Allstate's operational expertise addressed inflation in auto repair costs while executing their Transformative Growth strategy.

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.

Headline financials

Total Revenue

$12.5B

Previous: $11.5B+8.5%
EPS (adj)

$0.73

Previous: $2.94-75.2%
P&C Combined Ratio

105.3%

Previous: 91.6%+15.0%
Capital Expenditures

-$286M

Previous: -$235M-21.7%
Free Cash Flow

$252M

Previous: $918M-72.5%
Net Income

$538M

Previous: $1.15B-53.3%
Operating Income

$8.87B

Previous: $8.25B+7.5%
Gross Profit

$10.9B

Previous: $9.86B+10.5%
Cash & Equivalents

$690M

Previous: $370M+86.5%
Total Assets

$133B

Previous: $123B+8.7%

Revenue & EPS history

Allstate · Revenue · Quarterly

$12.5B

Q3 2021+8.5%vs Q3 2020
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 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.

Tailwinds

  • 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

Headwinds

  • 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

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 Q3 2021

Historical avgQ3 2021

+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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