- Net investment income: $712 million (up 17% year-over-year), missed estimate of $728 million.
- Adjusted EPS: $1.61 (versus a loss of $4.42 per share year-over-year), estimate was 26 cents.
- Consolidated revenue: $15.71 billion (up 12% year-over-year), beat estimate of $15.23 billion.
- Net premiums written: $14.28 billion (up 13% year-over-year), surpassed estimate of $13.92 billion.
- Property-Liability insurance premiums earned: $13.34 billion (up 12% year-over-year), exceeded estimate of $13.22 billion.
- Auto combined ratio: 95.9% (versus 108.3% year-over-year), better than the estimate of 99.4%.
- Catastrophe losses: $2.12 billion (down 21% year-over-year), close to the estimate of $2.13 billion.
- Property and Casualty Insurance and Claims expense: $10.80 billion (down 7.9% year-over-year), lower than the estimate of $11.05 billion.
- Adjusted net income: $429 million (versus a loss of $1.16 billion year-over-year), estimate was $185.8 million.
- Analyst recommendations: 17 buys, 3 holds, 3 sells.
Allstate Corp on Smartkarma
Analysts on Smartkarma, including Baptista Research, are providing coverage on Allstate Corp, a company that recently reported a strong financial performance in the first quarter of 2023. The report highlights a significant improvement in net income, reaching $1.2 billion, driven by the effective execution of the auto insurance profit improvement plan, attractive margins in homeowners’ insurance, and lower catastrophe losses. Additionally, there was a notable 33% increase in net investment income, attributed to repositioning into higher fixed income yields and improved performance-based valuations.
A look at Allstate Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, The Allstate Corporation’s long-term outlook appears positive. With a Value score of 3, the company is deemed to have a reasonable valuation relative to its peers. Coupled with a Dividend score of 3, investors can expect a steady payout from Allstate. However, the Growth score of 2 suggests slower growth potential, while the Resilience score of 3 indicates a moderate level of stability in uncertain times. The Momentum score of 4 is a strong indicator of the company’s positive market momentum, which bodes well for its future performance.
The Allstate Corporation, known for providing property-liability insurance and other insurance products in the US and Canada, seems to be positioned steadily for the long term. Catering to private passenger automobile and homeowners insurance primarily through various channels, including independent brokers, the company also offers life insurance and annuity products. With decent scores across key factors, Allstate appears to offer a balanced investment opportunity for those seeking stability and potential growth in the insurance sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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