On Thursday, April 19, insurance titan Allstate
- Consolidated revenue grew 2.8% to $9.3 billion as higher net investment income offset a 1% fall in premiums earned.
- Net income grew 5% and diluted EPS advanced 9.1% thanks to share buybacks.
- The combined ratio worsened to 84.6%, due to higher claim frequencies from icy conditions in the central and northeastern United States.
- Allstate announced previously that it "is no longer providing guidance on operating income earnings per diluted share" but still predicts its combined ratio (excluding catastrophes) will come in between 84% and 86% for 2007.
- Allstate carries a favorable four-star rating in Motley Fool CAPS, as do rivals Chubb
(NYSE:CB) and Allianz(NYSE:AZ) . Peer Safeco(NYSE:SAF) carries a lowly one-star rating, while Progressive(NYSE:PGR) is little better at two stars.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
% Change |
|
|---|---|---|---|
|
Premiums Earned |
$6,806 |
$6,876 |
(1.0%) |
|
Total Revenue |
$9,331 |
$9,081 |
2.8% |
|
Net Income |
$1,486 |
$1,415 |
5.0% |
|
EPS |
$2.39 |
$2.19 |
9.1% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Loss Ratio |
61.1% |
56.2% |
4.90% |
|
Expense Ratio |
24.1% |
25.6% |
(1.50%) |
|
Combined Ratio |
84.6% |
81.9% |
2.70% |
|
Operating Margin |
12.8% |
14.4% |
(1.53%) |
|
Net Margin |
15.9% |
15.6% |
0.34% |
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
% Change |
|---|---|---|---|
|
Investments |
$122,382 |
$118,840 |
3.0% |
|
Cash and Equivalent |
$471 |
$343 |
37.3% |
|
Liabilities |
|||
|---|---|---|---|
|
Loss Reserve |
$18,667 |
$20,351 |
(8.3%) |
|
Unearned Premiums |
$10,221 |
$10,085 |
1.3% |
|
Long Term Debt |
$4,640 |
$5,533 |
(16.1%) |
The balance sheet reflects a company's health.
Cash Flow Highlights
Free cash flow is a Fool's best friend.
Related Foolishness:
- Warren Buffett's Priceless Investment Advice
- A Closer Look at Insurance Stocks
- Getting to Know the Insurance Industry
- Insurance Industry Basics: Combined Ratio
- That's All for Allstate? Part 2
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.
