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Allstate’s (NYSE:ALL) Q2 adjusted loss per share widened from the previous quarter and a year ago as severe weather led to dramatically higher catastrophe losses, according to its results reported on Tuesday.
Q2 adjusted EPS of -$4.42, vs. -$3.96 consensus, widened from -$1.31 in the previous quarter and from -$0.75 in the year-ago period. Revenue of $13.98B, topping the average analyst estimate of $13.36B, rose from $13.79B in Q1 and from $12.22B in Q2 2022.
Reflecting underwriting losses for the quarter, Allstate (ALL) suspended its $5B stock repurchase authorization in July, the company said.
“Severe weather resulted in 42 catastrophe events, where we remediated losses for 160,000 customers, causing net catastrophe losses of $2.7B in the quarter,” said President and CEO Tom Wilson.
“The auto insurance profit improvement plan is being successfully implemented and we continue to increase homeowners prices in response to higher severity and catastrophes, although price increases and operating efficiency gains were largely offset by increased claim frequency and severity in the quarter,” he added.
Q2 consolidated premiums written increased to $13.73B from $12.87B in Q1 and from $12.64B in Q2 2022.
Total catastrophe losses increased to $2.70B from $1.69B in Q1 and from $1.11B in Q2 2022.
Property-liability underlying combined ratio declined to 92.9 from 93.3 in the prior quarter and from 93.4 in the year-ago period.
Net investment income increased to $610M from $575M in the previous quarter and $562M in the year-ago quarter.
Conference call on Aug. 2 at 11:00 AM ET.
Earlier, Allstate (ALL) non-GAAP EPS of -$4.42 beats by $2.66, revenue of $13.79B beats by $430M
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