Wednesday, personal property and casualty insurance provider Allstate Corp. (ALL), reported higher profit for its second quarter, when compared to last year, helped by a 14.4% increase in revenues that included realized capital gains from realized capital losses in the prior year quarter.
The Northbrook, Illinois-based company reported net income for the second quarter of $389 million or $0.72 per share, compared to $25 million or $0.05 per share in the year-ago quarter.
Operating income for the quarter fell to $297 million or $0.55 per share from $683 or $1.24 per share in the same quarter last year.
On average, nineteen analysts polled by Thomson Reuters expected the company to earn $1.12 per share for the quarter. Analysts' estimates typically excludes special items.
Consolidated revenues for the quarter increased 14.5% to $8.49 billion from $7.42 billion in the prior-year quarter, reflecting realized capital gains compared to realized capital losses in the prior year quarter. Analysts had a revenue consensus of $8.20 billion for the second quarter.
Thomas Wilson, chairman, president and CEO of The Allstate Corp. said,"Customer loyalty improved, reflecting increases in customer satisfaction, likelihood to renew and willingness to recommend Allstate. Our reinvention efforts are further improving our competitive position with Your Choice Auto and Allstate Blue raising auto new business sales."
Segment wise, Property-liability insurance premiums earned for the quarter was $6.56 billion compared to $6.75 billion in the year-ago similar period. Life and annuity premiums and contract charges for the quarter was $494 million, up from $471 million in the prior-year similar quarter.
Net investment income for the quarter declined to $1.11 billion from $1.41 billion in the comparable period of fiscal 2008. The company reported realized capital gains of $328 million, compared to a realized capital loss of $1.22 billion in the same period last year.
Total costs and expenses, which included restructuring and related charges, for the quarter was $8.03 billion compared to $7.50 billion in the second-quarter of fiscal 2008.
Don Civgin, senior vice president and chief financial officer said that at the end of the second quarter, the company held $15.1 billion in shareholders' equity with $3.4 billion in assets available at the holding company level. Statutory surplus at June 30, 2009 was estimated to be $13.8 billion at Allstate Insurance Company and $3.4 billion at Allstate Life Insurance Company.
Allstate Corp. revealed that it continues to have access to $1.00 billion of funds from either commercial paper issuance or an unsecured credit facility, neither of which was drawn at June 30, 2009. Excluding the debt that was refinanced with the May offering, Allstate's next long-term debt maturities are $40 million in 2011 and $350 million in 2012.
In the preceding quarter, Allstate Corp. reported a net loss of $274.0 million or $0.51 per share, compared to a net income of $348 million or $0.62 per share in the same quarter of last year. Operating income for the quarter was $454 million or $0.84 per share, compared to $747 million or $1.33 per share in the year ago quarter. Revenues for the quarter declined 2.5% to $7.88 billion from $8.09 billion in the prior year quarter.
Among others in the industry, Mayfield Village, Ohio-based auto insurance group Progressive Corp. (PGR), reported a 16% increase in its net profit for the second quarter of fiscal 2009. The company's net income for the quarter was $250.1 million, or $0.37 per share, compared with $215.5 million, or $0.32 per share, in the same quarter last year. Net premiums written were $3.53 billion for the quarter, up from $3.51 billion in the year-ago quarter. Net premiums earned were $3.44 billion, compared with $3.41 billion in the previous year.
For the six-month period, net income for Allstate fell to $115 million or $0.21 per share from $373 million or $0.67 per share in the comparable period a year ago.
Consolidated revenues for the first half of fiscal 2009 rose to $16.37 billion from $15.51 billion in the similar period of 2008.
ALL closed Wednesday's regular session at $28.23, up $0.06 or 0.21%, on a volume of 5.29 million shares. However, the stock lost $0.76 or 2.69%, and traded at $27.47 in after hours. The stock moved in the range of $13.77 - $48.00 for the past 52 weeks, with three-month average volume of 6.08 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.