Life Insurance

Allstate reveals Q2 2021 financials

Allstate Corporation has reported its financial results for the second quarter of 2021, posting “strong performance” as the US economy starts to pick up once more.

“Allstate has performed exceptionally as the economy rebounds from the pandemic by focusing on execution, innovation and long-term value creation,” said Allstate chair, president and CEO Tom Wilson. “Revenues grew 21.6% over the prior year, reflecting execution of a multi-faceted plan to increase growth. The property-liability combined ratio of 95.7 was attractive despite an increase in the frequency of auto accidents and $952 million of catastrophe losses.”

Wilson also noted that investment income from the company’s performance-based portfolio increased by $759 million. He added that Allstate’s Q2 2021 net income was at $1.6 billion, while its adjusted net income was $3.79 per share, representing a return on equity of 23.8% for the last 12 months.

Other notable takeaways of the financial report include:

  • Property-liability written premium of $10.3 billion increased 12.5% in Q2 2021 compared to the prior-year quarter; this was primarily driven by Allstate’s acquisition of National General.

    • Allstate Protection auto insurance net written premium increased 10.1% and policies in force increased by 14.1% in Q2 2021 from Q2 2020.
    • Allstate Protection homeowners insurance net written premium saw a year-over-year 19.2% increase and policies in force increased 7.5%.

  • Protection Services revenues increased to $581 million in the second quarter of 2021, 27.1% higher than the prior-year quarter.
  • Allstate Investments’ $62.6 billion portfolio generated a net investment income of $974 million in the second quarter of 2021 – reflecting an increase of $754 million from the prior-year quarter. This was driven by higher performance-based income, the company said.
  • The company’s discontinued operations generated $196 million of income in the second quarter of 2021, primarily driven by higher performance-based income. In Q1 2021, assets and liabilities of Allstate Life Insurance Company and Allstate Life Insurance Company of New York were reclassified as held for sale.

“Allstate’s focus on current results and long-term value creation is designed to increase shareholder value,” commented Allstate chief financial officer Mario Rizzo. “The previously announced divestitures of the life and annuity businesses are on pace to close in 2021, and the acquisition of National General enhances our position in the independent agent channel and increases market share.”

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