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| ALL > SEC Filings for ALL > Form 10-Q on 6-Nov-2008 | All Recent SEC Filings |
6-Nov-2008
Quarterly Report
OVERVIEW
The following discussion highlights significant factors influencing the consolidated financial position and results of operations of The Allstate Corporation (referred to in this document as "we", "our", "us", the "Company" or "Allstate"). It should be read in conjunction with the condensed consolidated financial statements and notes thereto found under Part I. Item 1. contained herein, and with the discussion, analysis, consolidated financial statements and notes thereto in Part I. Item 1. and Part II. Item 7. and Item 8. of The Allstate Corporation Annual Report on Form 10-K for 2007. Further analysis of our insurance segments is provided in the Property-Liability Operations (which includes the Allstate Protection and the Discontinued Lines and Coverages segments) and in the Allstate Financial Segment sections of Management's Discussion and Analysis ("MD&A"). The segments are consistent with the way in which we use financial information to evaluate business performance and to determine the allocation of resources.
Allstate's goal is to reinvent protection and retirement for the consumer. To
achieve this goal, Allstate is focused on the following operating priorities:
consumer focus, operational excellence, enterprise risk and return, and capital
management.
HIGHLIGHTS
† Consolidated net loss was $923 million in the third quarter of 2008 compared to net income of $978 million in the third quarter of 2007, and a net loss of $550 million in the first nine months of 2008 compared to net income of $3.88 billion in the first nine months of 2007. Net loss per diluted share was $1.71 in the third quarter of 2008 compared to net income per diluted share of $1.70 in the third quarter of 2007. Net loss per diluted share was $1.00 in the first nine months of 2008 compared to net income per diluted share of $6.41 in the first nine months of 2007.
† Property-Liability had a net loss of $661 million in the third quarter of 2008 compared to net income of $935 million in the third quarter of 2007, and a net income of $281 million in the first nine months of 2008 compared to net income of $3.51 billion in the first nine months of 2007.
† The Property-Liability combined ratio was 112.7 in the third quarter of 2008 compared to 91.0 in the third quarter of 2007 and 100.4 in the first nine months of 2008 compared to 87.7 in the first nine months of 2007.
† Catastrophe losses in the third quarter of 2008 totaled $1.82 billion compared to $343 million in the third quarter of 2007, and $3.08 billion in the first nine months of 2008 compared to $937 million in the first nine months of 2007. The effect of catastrophe losses on the combined ratio was 26.8 points and 5.0 points in the third quarter of 2008 and 2007, respectively, and 15.2 points and 4.6 points in the first nine months of 2008 and 2007, respectively.
† Allstate Financial had a net loss of $196 million in the third quarter of 2008 compared to net income of $70 million in the third quarter of 2007, and a net loss of $686 million in the first nine months of 2008 compared to net income of $434 million in the first nine months of 2007.
† Total revenues were $7.32 billion in the third quarter of 2008 compared to $8.99 billion in the third quarter of 2007, and $22.83 billion in the first nine months of 2008 compared to $27.78 billion in the first nine months of 2007.
† Property-Liability premiums earned decreased 0.5% to $6.79 billion in the third quarter of 2008 from $6.82 billion in the third quarter of 2007, and 0.7% to $20.30 billion in the first nine months of 2008 from $20.45 billion in the first nine months of 2007.
† Realized capital losses were $1.29 billion and $3.16 billion in the third quarter and first nine months of 2008, respectively, compared to realized capital gains of $121 million and $1.14 billion in the third quarter and first nine months of 2007, respectively.
† Investments as of September 30, 2008 decreased 11.8% to $104.98 billion from $118.98 billion as of December 31, 2007. Net investment income decreased 15.5% to $1.36 billion in the third quarter of 2008 from $1.60 billion in the third quarter of 2007, and 10.7% to $4.29 billion in the first nine months of 2008 from $4.81 billion in the first nine months of 2007.
† Book value per diluted share decreased 16.0% to $31.44 as of September 30, 2008 from $37.45 as of September 30, 2007, and decreased 18.5% from $38.58 as of December 31, 2007.
† For the twelve months ended September 30, 2008, return on the average of beginning and ending period shareholders' equity decreased 22.1 points to 1.1% from 23.2% for the twelve months ended September 30, 2007.
† To further enhance our liquidity and capital levels, we suspended our $2.00 billion share repurchase program and do not plan to complete it by our original target date of March 2009. We will re-evaluate this program as market conditions develop in 2009. The number of shares repurchased under the program was 9.9 million shares for $449 million during the three months ended September 30, 2008, and 22.5 million shares for $1.07 billion during the nine months ended September 30, 2008.
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