The Allstate Corporation has released its full-year results for 2019, reporting consolidated revenues of $44.7 billion, up 12% on the previous year.
Net income also more than doubled compared with the previous year, at $4.7 billion in 2019 versus $2.0 billion in 2018.
Results were helped by a decrease in catastrophe losses, which totalled $2.56 billion for the year.
This represented a 10.4% reduction on 2018 catastrophe losses incurred by Allstate, which were $2.86 billion.
Allstate’s consolidated policies in force grew to 145.9 million in 2019, including a 1.3% increase to 33.7 million for Property-Liability policies and a 45.3% increase to 99.6 million for Allstate Protection Plans.
Net investment income was however 2.5% lower than in the previous year at $3.2 billion, as higher market-based income was offset by lower performance-based results.
Looking at the fourth quarter of 2019 only, total revenue increased 21.0% to $11.47 billion compared to Q4 2018, while net income rose to $1.71 billion, up from $585 million previously.
During this period, net investment income decreased by 12.3% on lower performance-based results, which included lower valuations on two private equity limited partnerships totaling $74 million, pre-tax.
“Allstate had excellent operating results in 2019 while pursuing long-term profitable growth,” said Tom Wilson, Chair, President and CEO of The Allstate Corporation. “Revenues reached $44.7 billion and net income was $4.7 billion for the year due to strong operating results.”
“Adjusted net income was $3.5 billion ($10.43 per share) for 2019 and $1.0 billion ($3.13 per share) for the fourth quarter, both substantially higher than the previous year, reflecting excellent underlying auto and homeowners insurance profitability and lower catastrophe losses. The Service Businesses continued growing rapidly, bringing total enterprise items in force to 145.9 million,” Wilson explained.
“Investment income declined for both the quarter and the year due to lower limited partnership income,” he added. “Total return on the $88.4 billion portfolio, however, was 9.2% for the year, reflecting increased valuations of bonds and public equities. Adjusted net income return on equity* was 16.9% for the year. We finished a $3 billion share repurchase program in January, which reduced common shares outstanding by 4.9% during 2019, and today the board authorized another $3 billion share repurchase program.”
