Aallstate(US:ALL)2019-07-30 20:23Financial Performance - Property and casualty insurance premiums for Q2 2019 were $8,986 million, up from $8,460 million in Q2 2018, representing a 6.2% increase[7]. - Net income for Q2 2019 was $851 million, compared to $717 million in Q2 2018, reflecting an 18.7% year-over-year growth[8]. - Total revenues for the first half of 2019 reached $22,134 million, a 11.4% increase from $19,869 million in the same period of 2018[7]. - Earnings per common share (diluted) for Q2 2019 were $2.44, up from $1.91 in Q2 2018, representing a 27.7% increase[7]. - Comprehensive income for Q2 2019 was $1,526 million, significantly higher than $562 million in Q2 2018, showing a 171.4% increase[8]. - Net income for the six months ended June 30, 2019, was $2,143 million, an increase from $1,723 million in 2018, representing a growth of 24.4%[14]. - Total revenues for the second quarter of 2019 were $9,598 million, an increase from $8,711 million in the second quarter of 2018, reflecting a growth of 10.1%[158]. - Net income applicable to common shareholders for the second quarter of 2019 was $863 million, an increase from $630 million in the same period of 2018, representing a growth of 37%[158]. Investment Income - The company reported net investment income of $942 million for Q2 2019, an increase from $824 million in Q2 2018, marking a 14.3% rise[7]. - Net investment income increased by 14.3% or $118 million in Q2 2019 compared to Q2 2018, primarily due to higher performance-based investment results[145]. - Net investment income for the three months ended June 30, 2019, was $471 million, up from $353 million in the same period of 2018, representing a 33.5% increase[160]. Costs and Expenses - Total costs and expenses for Q2 2019 were $10,068 million, compared to $9,204 million in Q2 2018, indicating a 9.4% increase[7]. - The company recognized an impairment of $55 million related to purchased intangibles during the second quarter of 2019[16]. - The expense ratio for the second quarter of 2019 was 23.5%, a decrease from 25.0% in the same period of 2018, suggesting improved operational efficiency[158]. Assets and Liabilities - Total assets increased to $118,374 million as of June 30, 2019, up from $112,249 million at December 31, 2018, representing a growth of 5.0%[9]. - Total liabilities increased to $93,898 million from $90,937 million, reflecting a growth of 3.2%[9]. - The company reported a total of $6,628 million in long-term debt, up from $6,451 million, which is an increase of 2.7%[9]. - Shareholders' equity reached $24,476 million, an increase from $21,312 million year-over-year, indicating a growth of 10.2%[10]. Claims and Catastrophes - Incurred claims and claims expense for the current year amounted to $12,250 million, up from $11,054 million in the prior year, representing a 10.8% increase[110]. - Catastrophe losses accounted for $1.75 billion in incurred claims for the six months ended June 30, 2019, compared to $1.27 billion in the same period of 2018, indicating a significant increase of 37.6%[111]. - Catastrophe losses for the second quarter of 2019 amounted to $1,072 million, compared to $906 million in the same period of 2018, representing an increase of 18.3%[158]. Shareholder Returns - Preferred stock dividends for Q2 2019 amounted to $30 million, down from $39 million in Q2 2018[7]. - The company declared dividends on common stock of $0.50 per share for the current period, compared to $0.46 per share in the previous period[11]. - The weighted average common shares (diluted) for Q2 2019 were 336.9 million, down from 354.6 million in Q2 2018[7]. Legal and Regulatory Matters - The company is managing various disputes in Florida related to personal injury protection benefits under auto policies, with ongoing litigation from medical providers[126]. - The company has faced multiple lawsuits alleging violations of federal securities laws, with claims related to misstatements about auto insurance claim frequency statistics[128]. - The company does not establish accruals for legal matters unless it believes a loss is probable and can be reasonably estimated[126]. Pension and Retirement Plans - Pension and other postretirement remeasurement losses were $125 million and $140 million for the second quarter and first six months of 2019, respectively, compared to remeasurement gains of $7 million and losses of $7 million for the same periods of 2018[130]. - The actual return on plan assets exceeded the expected return by $225 million and $616 million for the second quarter and first six months of 2019, driven by strong equity market performance[131]. - The weighted average discount rate for measuring the benefit obligation decreased to 3.53% as of June 30, 2019, down from 4.30% at December 31, 2018[130].