After the market close on Jan. 30, Allstate
- Consolidated revenue grew 1.8% to $9.1 billion and was attributed to "higher net investment income and net realized capital gains."
- Net income grew 16.5% and was aided by share buybacks.
- The combined ratio improved to 85.7%, as a major drop in the loss ratio from fewer catastrophes and claims offset an increase in the expense ratio.
- Allstate announced that it "is no longer providing guidance on operating income earnings per diluted share" but did predict that its combined ratio (excluding catastrophes) will come in between 84% and 86% for 2007.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
% Change |
|
|---|---|---|---|
|
Premiums Earned |
$6,832 |
$6,838 |
(0.1%) |
|
Total Revenue |
$9,102 |
$8,945 |
1.8% |
|
Net Income |
$1,213 |
$1,041 |
16.5% |
|
EPS |
$1.93 |
$1.59 |
21.4% |
Get back to basics with a look at an insurer's income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Loss Ratio |
60.6% |
65.4% |
(4.80%) |
|
Expense Ratio |
25.1% |
23.6% |
1.50% |
|
Combined Ratio |
85.7% |
88.9% |
(3.20%) |
|
Operating Margin |
12.3% |
10.9% |
1.42% |
|
Net Margin |
13.3% |
11.6% |
1.69% |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
% Change |
|---|---|---|---|
|
Investments |
$119,757 |
$118,297 |
1.2% |
|
Cash and Equivalent |
$443 |
$313 |
41.5% |
|
Liabilities |
|||
|---|---|---|---|
|
Loss Reserve |
$18,866 |
$22,117 |
(14.7%) |
|
Unearned Premiums |
$10,427 |
$10,294 |
1.3% |
|
Long Term Debt |
$4,650 |
$4,887 |
(4.8%) |
Learn your way around an insurer's balance sheet.
Comparable companies:
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St. Paul Travelers
(NYSE:STA) -
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(NYSE:AZ) -
Safeco
(NYSE:SAF) -
Chubb
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Progressive
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Unitrin
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Related Foolishness:
- A Closer Look at Insurance Stocks
- Getting to Know the Insurance Industry
- Insurance Industry Basics: Combined Ratio
- Insurance Industry Basics: Float
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
