Allstate Corporation (ALL) has reported 71.78 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $840 million, or $2.18 a share in the quarter, compared with $489 million, or $1.18 a share for the same period last year.
Revenue during the quarter grew 6.75 percent to $9,278 million from $8,691 million in the previous year period. Net premium earned for the quarter went up marginally by 2.96 percent or $244 million to $8,475 million.
Total expenses move up marginallyBenefits, losses and expenses for the quarter were at $8,021 million, or 94.64 percent of premium earned from $7,972 million or 96.85 percent of premium earned in the last year period. Operating income for the quarter was $1,257 million, compared with $719 million in the previous year period. Life insurance division has clocked in a premium of $574 million on net basis during the quarter, up 4.94 percent or $27 million. Property and casualty insurance division has booked premium of $7,901 million on net basis during the quarter, up 2.82 percent or $217 million from year-ago period.
Net investment income was at $801 million for the quarter, up 12.82 percent or $91 million from year-ago period.
"Allstate's ability to execute operational improvements in a challenging environment delivered excellent results in 2016," said Tom Wilson, chairman and chief executive officer of The Allstate Corporation. "In the fourth quarter, net income was $811 million, with operating earnings per share of $2.17. For the full year, net income was $1.76 billion and operating income was $1.84 billion on total revenues of $36.5 billion. Overall insurance policies in force declined modestly as strong growth at Allstate Benefits was more than offset by a decline in Property-Liability insurance caused by auto profit improvement actions. The recorded combined ratio for the year was 96.1 as the impact of an $853 million increase in catastrophe losses was partially offset by good underlying insurance margins. The full-year underlying combined ratio of 87.9 was at the favorable end of our annual outlook range of 88-90, as the auto profit improvement plan was on pace, homeowners margins were maintained and expenses were well controlled. Continuation of these initiatives are expected to result in an annual underlying combined ratio of 87-89 for 2017.
Operating cash flow improvesAllstate Corporation has generated cash of $3,993 million from operating activities during the year, up 10.43 percent or $377 million, when compared with the last year. The company has spent $2,526 million cash to meet investing activities during the year as against cash inflow of $742 million in the last year.
The company has spent $1,526 million cash to carry out financing activities during the year as against cash outgo of $4,520 million in the last year period.
Cash and cash equivalents stood at $436 million as on Dec. 31, 2016, down 11.92 percent or $59 million from $495 million on Dec. 31, 2015.
Liabilities outpace assets growth
Total assets increased 3.78 percent or $3,954 million to $108,610 million on Dec. 31, 2016. On the other hand, total liabilities were at $88,037 million as on Dec. 31, 2016, up 4.02 percent or $3,406 million from year-ago.
Return on assets stood at 0.84 percent in the quarter, up 0.31 from 0.54 percent in the last year period. At the same time, return on equity was at 3.94 percent in the quarter, up 1.64 from 2.30 percent in the last year period.
Investments move upInvestments stood at $81,799 million as on Dec. 31, 2016, up 5.20 percent or $4,041 million from year-ago. Meanwhile, yield on investments went up 7 basis points to 0.98 percent in the quarter. Meanwhile, reinsurance recoverables moved up 2.66 percent or $227 million over the year to $8,745 million on Dec. 31, 2016.
Total debt was at $6,347 million as on Dec. 31, 2016, up 23.87 percent or $1,223 million from year-ago. Shareholders equity stood at $20,573 million as on Dec. 31, 2016, up 2.74 percent or $548 million from year-ago. As a result, debt to equity ratio went up 5 basis points to 0.31 percent in the quarter from 0.26 percent in the last year period.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
