Allstate reports Q1 adjusted EPS $3.53, consensus $2.53

Reports Q1 revenue $16.45B, consensus $16.36B. “Allstate’s (ALL) strategy, operational excellence and risk management practices generated strong first quarter results, despite unprecedented severe weather. Revenues increased to $16.5 billion, a 7.8% increase over the prior year, with growth in policies in force of 6.7% to 211 million. Net income was $566 million, lower than last year, as a record $3.3 billion of gross catastrophe losses were partially offset by $1.1 billion of reinsurance recoveries in the quarter. Adjusted net income* was $949 million, or $3.53 per diluted share. Transformative Growth gained momentum with strong underlying insurance profitability and sequential growth in auto and homeowners insurance policies in force. Proactive investment management supported enterprise risk and return objectives including the generation of $854 million of net investment income for the quarter. Protection Plans continues to grow in the U.S and internationally with revenues up 16.4% over the prior year. Closing the sale of the Employer Voluntary Benefits business on April 1 for $2.0 billion further strengthens capital. Allstate has the capabilities, brand, distribution and resources to increase Property-Liability market share and expand protection provided to customers,” said Tom Wilson, Chair, President and CEO of The Allstate Corporation.