Hurricane Sandy may have posed some challenges for Allstate (NYSE:ALL), but the insurer announced with the release of its Q4 and 2012 results that it will increase its dividend.
For the quarter, consolidated revenues advanced 4% on a year-over-year basis to $8.5 billion. Net profit, however, saw a pronounced slide by 45%, landing at $394 million.
The bottom-line story was much different in the company's full-year numbers. On the back of revenue that grew to $33.3 billion (2% higher than in 2011), net surged by 193% to $2.3 billion.
The company attributed the Q4 decline to costs related to Hurricane Sandy, while the strong improvement in annual profit was because the company increased its overall premiums. In addition, it "maintained strong auto profitability, dramatically improved returns in homeowners, and began to reduce the negative impact on policies in force related to profit improvement actions," according to its CEO Thomas Wilson.
On the back of these results, Allstate has increased its quarterly payout and launched a $1 billion share-buyback program. The dividend is to be lifted by nearly 14% to $0.25 per share, payable on April 1 to stockholders as of Feb. 28.