The Allstate Corporation (ALL) has reported an 182.52 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $695 million, or $1.79 a share in the quarter, compared with $246 million, or $0.57 a share for the same period last year.
Revenue during the quarter grew 6.35 percent to $9,434 million from $8,871 million in the previous year period. Net premium earned for the quarter increased 3.17 percent or $263 million to $8,552 million.
Life insurance division has clocked in a premium of $593 million on net basis during the quarter, up 4.77 percent or $27 million. Property and casualty insurance division has booked premium of $7,959 million on net basis during the quarter, up 3.06 percent or $236 million from year-ago period.
Net investment income was at $748 million for the quarter, up 2.33 percent or $17 million from year-ago period. The company has recorded a gain on investments of $268 million in the quarter compared with a loss of $298 million for the previous year period.
"We are off to a strong start in 2017 on both operating priorities and strategic initiatives. The value of providing customers a broad range of protection products across North America was evident as significant catastrophe losses from large hail storms were offset by favorable winter weather that reduced the number of auto accidents. Overall net income was $666 million, $1.79 per share, for the first quarter, a significant increase compared to last year," said Tom Wilson, chairman and chief executive officer of The Allstate Corporation. "We made excellent progress on our operating priorities of better serving customers, achieving economic returns on capital and proactively managing investments. First quarter results for the investment portfolio were solid as investment income increased to $748 million and total return was 1.6%. Allstate Financial generated $110 million of operating income due to higher investment results."
Operating cash flow improves
The Allstate Corporation has generated cash of $857 million from operating activities during the quarter, up 20.03 percent or $143 million, when compared with the last year period.
The company has spent $280 million cash to meet investing activities during the quarter as against cash inflow of $96 million in the last year period.
The company has spent $571 million cash to carry out financing activities during the quarter as against cash outgo of $774 million in the last year period.
Cash and cash equivalents stood at $442 million as on Mar. 31, 2017, down 16.76 percent or $89 million from $531 million on Mar. 31, 2016.
Liabilities outpace assets growth
Total assets increased 4.05 percent or $4,296 million to $110,243 million on Mar. 31, 2017. On the other hand, total liabilities were at $89,085 million as on Mar. 31, 2017, up 4.06 percent or $3,478 million from year-ago.
Return on assets stood at 0.71 percent in the quarter, up 0.41 from 0.30 percent in the last year period. At the same time, return on equity was at 3.15 percent in the quarter, up 2.08 from 1.07 percent in the last year period.
Investments move up marginally
Investments stood at $81,143 million as on Mar. 31, 2017, up 2.87 percent or $2,266 million from year-ago. Meanwhile, yield on investments was almost stable at 0.92 percent in the quarter, when compared with the last year period.
Meanwhile, reinsurance recoverables moved up 1.75 percent or $150 million over the year to $8,723 million on Mar. 31, 2017.
Total debt was at $6,346 million as on Mar. 31, 2017, up 24.24 percent or $1,238 million from year-ago. Shareholders equity stood at $21,158 million as on Mar. 31, 2017, up 4.02 percent or $818 million from year-ago. As a result, debt to equity ratio went up 5 basis points to 0.30 percent in the quarter from 0.25 percent in the last year period.
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