Aallstate(US:ALL)2019-05-01 20:21Financial Performance - Total revenues for Q1 2019 increased to $10,990 million, up 12.4% from $9,770 million in Q1 2018[7] - Net income for Q1 2019 was $1,292 million, representing a 28.5% increase compared to $1,006 million in Q1 2018[9] - Earnings per share (diluted) rose to $3.74 in Q1 2019, up from $2.71 in Q1 2018, reflecting a 37.9% increase[7] - Comprehensive income for Q1 2019 was $2,259 million, significantly higher than $425 million in Q1 2018[9] - Net income for the first quarter of 2019 was $1,292 million, an increase of 28.5% compared to $1,006 million in the same period of 2018[12] - Total shareholders' equity at the end of the first quarter of 2019 was $23,418 million, up from $23,273 million year-over-year[12] - Consolidated net income applicable to common shareholders increased by 29.1% in Q1 2019, reaching $1,261 million compared to $977 million in Q1 2018[135] Insurance Premiums - Property and casualty insurance premiums grew to $8,802 million, a 6.2% increase from $8,286 million in the same period last year[7] - Premiums written in Allstate Protection increased by 6.2% to $8.33 billion in Q1 2019 compared to the same period in 2018[138] - Total premiums written increased to $8,327 million in Q1 2019, up from $7,844 million in Q1 2018, representing a growth of 6.2%[155] - Homeowners premiums written rose to $1,565 million in Q1 2019, up from $1,465 million in Q1 2018, marking an increase of 6.8%[177] Investment Performance - Total investments as of March 31, 2019, amounted to $84,121 million, an increase from $81,260 million at the end of 2018[10] - The company reported realized capital gains of $662 million in Q1 2019, compared to a loss of $134 million in Q1 2018[7] - Net investment income for the first quarter of 2019 was $648 million, compared to $786 million in Q1 2018, reflecting a decrease of approximately 17.6%[52] - The company’s investment income before expenses was $719 million in Q1 2019, down from $851 million in Q1 2018, reflecting a decrease of approximately 15.5%[52] Claims and Expenses - The company reported property and casualty insurance claims and claims expense of $5,820 million, a slight decrease of $9 million from previous reporting[26] - Incurred claims and claims expense for the current year totaled $5.808 billion for the three months ended March 31, 2019, compared to $5.180 billion for the same period in 2018[113] - Catastrophe losses accounted for $680 million in incurred claims and claims expense for the three months ended March 31, 2019, compared to $361 million in 2018[114] - The combined ratio worsened to 91.8% in Q1 2019 from 87.5% in Q1 2018, primarily due to higher claims expenses[148] Shareholder Equity - Shareholders' equity increased to $23,418 million as of March 31, 2019, up from $21,312 million at the end of 2018[11] - The company reported total liabilities of $92,416 million as of March 31, 2019, an increase of $19 million from the previous accounting principle[31] - Total shareholders' equity was $23,418 million as of March 31, 2019, reflecting a decrease of $19 million due to the impact of accounting changes[31] Accounting Changes and Impacts - The cumulative effect of changing the accounting principle for pension and postretirement plans resulted in a decrease to retained income of $1.58 billion as of January 1, 2018[24] - The company expects the most significant impacts of new accounting guidance to occur in the run-off annuity segment, with material changes anticipated in financial statements[21] - The company is evaluating the anticipated impacts of applying new guidance on both retained income and accumulated other comprehensive income (AOCI)[22] Operational Cash Flow - Net cash provided by operating activities was $714 million, compared to $626 million in the first quarter of 2018, reflecting a 14% increase[13] - Cash flows from operating activities for the three months ended March 31, 2019, were $714 million, consistent with the previous period[37] - Operating cash flow used was $(515) million for the three months ended March 31, 2019, compared to $87 million provided in the same period of 2018[129] Acquisitions - The company acquired iCracked Inc. for $17 million and PlumChoice, Inc. for $30 million, enhancing its service offerings in the technology support sector[42] - The company acquired iCracked Inc. on February 12, 2019, enhancing its on-site repair service capabilities[140] Legal and Regulatory Matters - The Company is involved in various lawsuits and regulatory inquiries, including challenges to its practices regarding personal injury protection benefits in Florida[122] - The Company has established procedures to comply with extensive laws and regulations, which may lead to modifications in practices and potential costs[120] - The outcome of ongoing legal proceedings is uncertain and may not have a material effect on the Company's financial position[122]