(Source: Business Wire)
The Allstate Corporation (NYSE: ALL) today reported results for the
third quarter of 2009:
Consolidated Highlights
Three months ended September 30,
($ in millions, except per share amounts and ratios, NM=not meaningful) 2009 2008 % Change
Consolidated revenues $ 7,582 $ 7,320 3.6
Net income (loss) 221 (923 ) 123.9
Net income (loss) per diluted share 0.41 (1.70 ) ** 124.1
Operating income (loss)* 538 (190 ) NM
Operating income (loss) per diluted share* 0.99 (0.35 ) NM
Book value per share 32.29 31.39 ** 2.9
Book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities* 32.44 34.20 ** (5.1 )
Catastrophe losses 407 1,816 (77.6 )
Property-Liability combined ratio 94.7 112.7 (18.0 ) pts
Property-Liability combined ratio excluding the effect of catastrophes and prior year reserve reestimates ("underlying combined ratio")* 88.0 85.9 2.1 pts
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* Measures used in this release that are not based on accounting
principles generally accepted in the United States of America
("non-GAAP") are defined and reconciled to the most directly comparable
GAAP measure and operating measures are defined in the "Definitions of
Non-GAAP and Operating Measures" section of this document.
** As a result of the adoption of new earnings per share accounting
guidance in the first quarter of 2009, prior periods have been restated.
"Allstate delivered strong operating income of $538 million and
increased book value per share by 16% during the third quarter, thanks
to our operating discipline and proactive approach to investing," said
Thomas J. Wilson, chairman, president and chief executive officer of The
Allstate Corporation. "For the third quarter in a row, customer loyalty
increased and we delivered a double-digit percentage increase in new
standard auto business. By focusing on the customer and maintaining our
financial strength, we are building a foundation for sustainable growth."
Consolidated Financial Results
Total revenues for the third quarter of 2009 were $7.6 billion, an
increase of 3.6% compared to the third quarter of 2008. This reflected
lower realized capital losses than the prior year quarter, partially
offset by a decrease in net investment income and property-liability
premiums. Allstate's third quarter net income was $221 million and
operating income was $538 million, compared to a net loss of $923
million and an operating loss of $190 million in the third quarter of
2008. Lower catastrophe losses contributed to the improvement in
operating income. The net income improvement reflected higher operating
income and lower realized capital losses in the third quarter of 2009
compared to the prior year quarter.
Property-Liability Combined Ratio Reflects Continued Strength in Auto
Allstate's Property-Liability business produced a combined ratio of 94.7
in the third quarter of 2009, resulting from continued margin strength
in the auto business and actions taken to reduce expenses, partly offset
by the impact of catastrophe losses on the homeowners business. The
underlying combined ratio was 88.0 in the third quarter and 88.1 in the
first nine months of 2009, within the company's 87-89 outlook range for
the full year. Management anticipates that the underlying combined ratio
for the full year 2009 will be within its previous outlook range.
Allstate brand standard auto premiums written for the third quarter of
2009 were comparable to the prior year third quarter, with new issued
applications increasing 12.0% and the renewal ratio increasing 0.2
points to 89.1. Policies in force declined 1.3% versus the prior year
quarter as improved sales and retention were offset by fewer policies
available to renew. The combined ratio was 92.7, up 1.7 points from the
third quarter of 2008, primarily due to higher loss frequency, as
frequency returned to historical norms following low levels in 2008.
Average claim cost increases were within expectations.
Allstate brand homeowners premiums written for the third quarter of 2009
declined 0.2% compared to the same period a year ago, resulting from a
4.1% decline in policies in force. The combined ratio improved to 98.3
in the third quarter of 2009 compared to 181.3 in the third quarter of
2008, reflecting lower catastrophe losses, partly offset by higher
non-catastrophe claim frequencies and severities. Allstate continues to
implement profit improvement actions in this business and will benefit
in the future from rate increases averaging 6.9% in 19 states that were
approved during the quarter.
Allstate had catastrophe losses of $407 million for the third quarter
and $1.7 billion for the first nine months of 2009. In comparison, the
company had $1.8 billion of catastrophe losses in the third quarter and
$3.1 billion in the first nine months of 2008, including $1.4 billion of
losses from Hurricanes Ike and Gustav.
The Property-Liability expense ratio for the third quarter of 2009 was
comparable to the prior year quarter primarily resulting from the timing
of marketing expenditures and more focused technology spending, being
offset by lower premiums earned and higher restructuring charges from
staff reductions. Excluding restructuring, the expense ratio declined
0.4 points in the third quarter of 2009 compared to the third quarter of
2008.
Allstate Financial Makes Strong Progress on Focus to Win'
Allstate Financial continued to make progress on its Focus to Win
program by reducing expenses, shifting fixed costs to variable, and
targeting higher returns on products. Through September 30, 2009,
expense savings initiatives have delivered approximately 80% of the
targeted $90 million in annual cost savings by 2011. Premiums and
deposits declined 45.5% in the third quarter of 2009 versus the third
quarter of 2008 resulting from pricing actions to improve returns and
reduce concentration in spread-based products.
Allstate Financial's operating income was $95 million in the third
quarter of 2009. This represented an 8.0% increase from $88 million in
the third quarter of 2008, primarily due to improved benefit spread,
lower amortization of deferred policy acquisition costs and reduced
operating expenses, partly offset by a lower investment spread. The
benefit spread increased 49.5% from the prior year quarter to $145
million, driven by improved mortality experience, higher premiums at the
Allstate Workplace Division, and increased contract charges on
interest-sensitive life insurance products. The investment spread
declined during the third quarter of 2009 to $109 million versus $214
million in the third quarter of 2008, due to lower net investment income
partly offset by lower interest credited on contractholder funds.
Operating expenses declined 26.1% to $99 million in the third quarter of
2009 from $134 million in the same period of 2008, reflecting the
substantial progress made through Focus to Win.
Allstate Financial's net loss was $38 million in the third quarter of
2009, compared to a net loss of $196 million in the same period of 2008.
Lower realized net capital losses, after-tax, of $151 million, compared
to $390 million in the prior year quarter, contributed to the
improvement.
Proactive Investment Strategies Improved Total Returns
Allstate's investment portfolio continued to benefit from risk
mitigation and return optimization strategies during the third quarter.
The company maintained its credit exposure while credit spreads
tightened, managed its exposure to interest rates, proactively reduced
exposure to commercial real estate, and invested opportunistically.
The consolidated investment portfolio grew $4.2 billion to $100.6
billion at September 30, 2009 when compared to June 30, 2009. The
unrealized net loss position improved by $4.8 billion compared to the
prior quarter, reducing pre-tax unrealized net losses to $2.5 billion at
September 30, 2009. Improved unrealized balances in all asset classes
were the result of tightening credit spreads, declining interest rates
and positive equity portfolio returns. The total unrealized net capital
gain was $112 million at September 30, 2009, after adjusting for
deferred policy acquisition costs and taxes.
Risk mitigation programs continued to be effective as macro hedges
against interest rate and equity market risk performed as expected
during the quarter. As interest rates declined and equity markets rose
in the three months ended September 30, 2009, fixed income and equity
valuations improved, but also resulted in realized losses on
derivatives. The duration of the investment portfolio declined 8.3% to
3.8 years at September 30, 2009 when compared to year-end 2008, while
increasing slightly during the third quarter.
Net investment income for the quarter was $1.1 billion, down $271
million from $1.4 billion in the third quarter of 2008, due to lower
yields, actions to shorten duration and maintain additional liquidity in
the portfolio, and reduced investment balances. During the quarter,
Allstate deployed $4.6 billion of short-term investments and cash
receipts into securities to generate income and capital appreciation.
Net realized capital losses for the quarter were $519 million, pre-tax.
This reflected $381 million of impairment write-downs and $361 million
of net losses from derivative instruments. Impairment write-downs were
primarily related to investments with real estate exposure and hybrid
securities issued by European financial institutions. Net gains of $201
million were realized on sales during the third quarter of 2009. Sales
included proactive measures to reduce exposures to commercial real
estate, certain municipal bond sectors, and below investment grade
assets.
Allstate's Capital Position Continues to Improve
"We continued to build Allstate's financial strength this quarter,
demonstrated by the 16% improvement in shareholders' equity to $17.5
billion at September 30," said Don Civgin, senior vice president and
chief financial officer. "Our improved operating and investment results
reflect the prudent and proactive decisions we have made and position
Allstate well as the economy continues to slowly improve."
Statutory surplus at September 30, 2009 was estimated to be $14.8
billion for Allstate Insurance Company, including $3.2 billion at
Allstate Life Insurance Company. There were $3.4 billion in assets
available at the holding company level to cover the company's relatively
low annual fixed charges. Allstate's 90-day liquidity improved to $33.0
billion in assets that could be sold without significant additional net
realized capital losses.
Building on Allstate's Strong Leadership
The company continues to build upon its strong leadership team. In
October, two new leaders joined the company. Matthew Winter became
president and chief executive officer of Allstate Financial and Mark La
Neve became Allstate's chief marketing officer. "Matt's experience and
leadership will enable Allstate Financial to continue successfully
implementing Focus to Win and generate growth by addressing the middle
market's unmet protection and retirement needs," said Wilson. "Mark's
experience in strengthening brands through customer-focused product
design and local sales will drive our efforts to reinvent protection and
retirement."
George E. Ruebenson, president, Allstate Protection, announced that he
will retire at year-end 2009 after nearly 40 years of service. "George's
service to our customers, employees and shareholders has strengthened
Allstate and positioned us for the future," said Wilson.
At Allstate.com, click on "Investors"
to view additional information about Allstate's third quarter results,
including a webcast of its quarterly conference call. The conference
call will be held at 9 a.m. ET on Thursday, November 5, 2009.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly
held personal lines insurer. Widely known through the "You're In Good
Hands With Allstate®" slogan, Allstate is reinventing
protection and retirement
to help more than 17 million households insure what they have today and
better prepare for tomorrow. Consumers access Allstate insurance
products and services through Allstate agencies, independent agencies,
and Allstate exclusive financial representatives in the U.S. and Canada,
as well as via www.allstate.com
and 1-800 Allstate®.
THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data) Three months ended September 30, Nine months ended September 30,
2009 2008 2009 2008
(unaudited) (unaudited)
Revenues
Property-liability insurance premiums earned $ 6,535 $ 6,785 $ 19,677 $ 20,299
Life and annuity premiums and contract charges 482 468 1,460 1,391
Net investment income 1,084 1,355 3,368 4,293
Realized capital gains and losses:
Total other-than-temporary impairment losses (539 ) (1,119 ) (1,735 ) (2,842 )
Portion of loss recognized in other comprehensive income 147 -- 301 --
Net other-than-temporary impairment losses recognized in earnings (392 ) (1,119 ) (1,434 ) (2,842 )
Sales and other realized capital gains and losses (127 ) (169 ) 884 (316 )
Total realized capital gains and losses (519 ) (1,288 ) (550 ) (3,158 )
7,582 7,320 23,955 22,825
Costs and expenses
Property-liability insurance claims and claims expense 4,573 5,971 14,295 15,423
Life and annuity contract benefits 382 418 1,176 1,210
Interest credited to contractholder funds 496 586 1,636 1,773
Amortization of deferred policy acquisition costs 1,023 980 3,649 3,014
Operating costs and expenses 744 814 2,247 2,334
Restructuring and related charges 35 10 112 4
Interest expense 106 88 291 264
7,359 8,867 23,406 24,022
Gain (loss) on disposition of operations 2 3 6 (6 )
Income (loss) from operations before income tax expense (benefit) 225 (1,544 ) 555 (1,203 )
Income tax expense (benefit) 4 (621 ) 219 (653 )
Net income (loss) $ 221 $ (923 ) $ 336 $ (550 )
Earnings per share:
Net income (loss) per share - Basic $ 0.41 $ (1.70 ) $ 0.62 $ (1.00 )
Weighted average shares - Basic 539.9 542.4 539.5 551.6
Net income (loss) per share - Diluted $ 0.41 $ (1.70 ) $ 0.62 $ (1.00 )
Weighted average shares - Diluted 541.5 542.4 540.5 551.6
Cash dividends declared per share $ 0.20 $ 0.41 $ 0.60 $ 1.23
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THE ALLSTATE CORPORATION
SEGMENT RESULTS
($ in millions, except ratios) Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
Property-Liability
Premiums written $ 6,810 $ 6,966 $ 19,694 $ 20,283
Premiums earned $ 6,535 $ 6,785 $ 19,677 $ 20,299
Claims and claims expense (4,573 ) (5,971 ) (14,295 ) (15,423 )
Amortization of deferred policy acquisition costs (943 ) (991 ) (2,832 ) (3,002 )
Operating costs and expenses (642 ) (678 ) (1,911 ) (1,949 )
Restructuring and related charges (31 ) (10 ) (88 ) (4 )
Underwriting income (loss) 346 (865 ) 551 (79 )
Net investment income 326 386 1,004 1,287
Periodic settlements and accruals on non-hedge derivative instruments (2 ) 1 (8 ) 2
Income tax expense (benefit) on operations (169 ) 230 (343 ) (237 )
Operating income (loss) 501 (248 ) 1,204 973
Realized capital gains and losses, after-tax (188 ) (412 ) (373 ) (690 )
Reclassification of periodic settlements and accruals on non-hedge
derivative instruments, after-tax 1 (1 ) 5 (2 )
Net income (loss) $ 314 $ (661 ) $ 836 $ 281
Catastrophe losses $ 407 $ 1,816 $ 1,741 $ 3,082
Operating ratios:
Claims and claims expense ratio 70.0 88.0 72.6 76.0
Expense ratio 24.7 24.7 24.6 24.4
Combined ratio 94.7 112.7 97.2 100.4
Effect of catastrophe losses on combined ratio 6.2 26.8 8.8 15.2
Effect of prior year reserve reestimates on combined ratio (0.7 ) -- (0.4 ) 0.6
Effect of catastrophe losses included in prior year reserve reestimates on
combined ratio 1.2 -- 0.7 (0.6 )
Effect of Discontinued Lines and Coverages on combined ratio 0.3 0.1 0.1 0.1
Allstate Financial
Premiums and deposits $ 1,033 $ 1,896 $ 3,965 $ 9,395
Investments $ 61,891 $ 66,547 $ 61,891 $ 66,547
Premiums and contract charges $ 482 $ 468 $ 1,460 $ 1,391
Net investment income 744 937 2,327 2,895
Periodic settlements and accruals on non-hedge derivative instruments 2 9 -- 25
Contract benefits (382 ) (418 ) (1,176 ) (1,210 )
Interest credited to contractholder funds (497 ) (604 ) (1,559 ) (1,833 )
Amortization of deferred policy acquisition costs (108 ) (140 ) (347 ) (387 )
Operating costs and expenses (99 ) (134 ) (325 ) (377 )
Restructuring and related charges (4 ) -- (24 ) --
Income tax expense on operations (43 ) (30 ) (111 ) (155 )
Operating income 95 88 245 349
Realized capital gains and losses, after-tax (151 ) (390 ) (239 ) (1,298 )
DAC and DSI accretion (amortization) relating to realized capital gains
and losses, after-tax 18 110 (132 ) 283
DAC and DSI unlocking relating to realized capital gains and losses, after-tax -- -- (224 ) --
Reclassification of periodic settlements and accruals on non-hedge
derivative instruments, after-tax (1 ) (6 ) -- (16 )
Gain (loss) on disposition of operations, after-tax 1 2 4 (4 )
Net loss $ (38 ) $ (196 ) $ (346 ) $ (686 )
Corporate and Other
Net investment income $ 14 $ 32 $ 37 $ 111
Operating costs and expenses (109 ) (90 ) (302 ) (272 )
Income tax benefit on operations 37 28 105 79
Operating loss (58 ) (30 ) (160 ) (82 )
Realized capital gains and losses, after-tax 3 (36 ) 6 (63 )
Net loss $ (55 ) $ (66 ) $ (154 ) $ (145 )
Consolidated net income (loss) $ 221 $ (923 ) $ 336 $ (550 )
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THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
($ in millions, except par value data) September 30, December 31,
2009 2008
Assets (unaudited)
Investments:
Fixed income securities, at fair value (amortized cost $81,367 and $77,104) $ 78,561 $ 68,608
Equity securities, at fair value (cost $4,274 and $3,137) 4,603 2,805
Mortgage loans 8,853 10,229
Limited partnership interests 2,770 2,791
Short-term, at fair value (amortized cost $3,470 and $8,903) 3,470 8,906
Other 2,369 2,659
Total investments 100,626 95,998
Cash 727 415
Premium installment receivables, net 4,970 4,842
Deferred policy acquisition costs 6,916 8,542
Reinsurance recoverables, net 6,460 6,403
Accrued investment income 901 884
Deferred income taxes 1,520 3,794
Property and equipment, net 1,013 1,059
Goodwill 874 874
Other assets 2,471 3,748
Separate Accounts 9,026 8,239
Total assets $ 135,504 $ 134,798
Liabilities
Reserve for property-liability insurance claims and claims expense $ 19,176 $ 19,456
Reserve for life-contingent contract benefits 12,849 12,881
Contractholder funds 53,336 58,413
Unearned premiums 10,069 10,024
Claim payments outstanding 772 790
Other liabilities and accrued expenses 6,081 6,663
Long-term debt 6,661 5,659
Separate Accounts 9,026 8,239
Total liabilities 117,970 122,125
Equity
Preferred stock, $1 par value, 25 million shares authorized, none issued -- --
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million
issued, 536 million and 536 million shares outstanding 9 9
Additional capital paid-in 3,160 3,130
Retained income 31,083 30,207
Deferred ESOP expense (47 ) (49 )
Treasury stock, at cost (364 million and 364 million shares) (15,832 ) (15,855 )
Accumulated other comprehensive income:
Unrealized net capital gains and losses:
Unrealized net capital losses on fixed income securities with OTTI (411 ) --
Other unrealized net capital gains and losses (1,218 ) (5,767 )
Unrealized adjustment to DAC, DSI and insurance reserves 1,741 2,029
Total unrealized net capital gains and losses 112 (3,738 )
Unrealized foreign currency translation adjustments 42 5
Unrecognized pension and other postretirement benefit cost (1,022 ) (1,068 )
Total accumulated other comprehensive loss (868 ) (4,801 )
Total shareholders' equity 17,505 12,641
Noncontrolling interest 29 32
Total equity 17,534 12,673
Total liabilities and equity $ 135,504 $ 134,798
THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions) Nine months ended September 30,
2009 2008
Cash flows from operating activities (Unaudited)
Net income (loss) $ 336 $ (550 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and other non-cash items (87 ) (267 )
Realized capital gains and losses 550 3,158
(Gain) loss on disposition of operations (6 ) 6
Interest credited to contractholder funds (1,636 ) (1,773 )
Changes in:
Policy benefits and other insurance reserves (460 ) 1,158
Unearned premiums 6 21
Deferred policy acquisition costs 471 (456 )
Premium installment receivables, net (108 ) (156 )
Reinsurance recoverables, net (101 ) (319 )
Income taxes 1,175 (1,176 )
Other operating assets and liabilities 103 364
Net cash provided by operating activities (3,515 ) (3,556 )
Cash flows from investing activities
Proceeds from sales:
Fixed income securities 16,098 19,289
Equity securities 4,636 8,008
Limited partnership interests 293 270
Mortgage loans 140 228
Other investments 429 167
Investment collections:
Fixed income securities 3,947 3,158
Mortgage loans 1,093 605
Other investments 99 79
Investment purchases:
Fixed income securities (22,694 ) (12,360 )
Equity securities (5,991 ) (8,420 )
Limited partnership interests (674 ) (810 )
Mortgage loans (23 ) (501 )
Other investments (54 ) (122 )
Change in short-term investments, net 5,437 (6,780 )
Change in other investments, net (144 ) (420 )
Disposition (acquisition) of operations 12 (120 )
Purchases of property and equipment, net (143 ) (153 )
Net cash provided by investing activities (2,461 ) (2,118 )
Cash flows from financing activities
Proceeds from issuance of long-term debt 1,003 19
Repayment of long-term debt (1 ) --
Contractholder fund deposits 3,252 8,698
Contractholder fund withdrawals (9,485 ) (12,497 )
Dividends paid (434 ) (668 )
Treasury stock purchases (3 ) (1,318 )
Shares reissued under equity incentive plans, net 2 31
Excess tax benefits on share-based payment arrangements (6 ) 3
Other 8 (9 )
Net cash used in financing activities (5,664 ) (5,741 )
Net increase (decrease) in cash 312 (67 )
Cash at beginning of period 415 422
Cash at end of period $ 727 $ 355
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Definitions of Non-GAAP and Operating Measures
We believe that investors' understanding of Allstate's performance is
enhanced by our disclosure of the following non-GAAP and operating
financial measures. Our methods for calculating these measures may
differ from those used by other companies and therefore comparability
may be limited.
Operating income (loss) is net income (loss), excluding:
realized capital gains and losses, after-tax, except for periodic
settlements and accruals on non-hedge derivative instruments, which
are reported with realized capital gains and losses but included in
operating income,
amortization of DAC and DSI, to the extent they resulted from the
recognition of certain realized capital gains and losses,
gain (loss) on disposition of operations, after-tax, and
adjustments for other significant non-recurring, infrequent or unusual
items, when (a) the nature of the charge or gain is such that it is
reasonably unlikely to recur within two years, or (b) there has been
no similar charge or gain within the prior two years.
Net income (loss) is the GAAP measure that is most directly comparable
to operating income (loss).
We use operating income (loss) as an important measure to evaluate our
results of operations. We believe that the measure provides investors
with a valuable measure of the company's ongoing performance because it
reveals trends in our insurance and financial services business that may
be obscured by the net effect of realized capital gains and losses, gain
(loss) on disposition of operations and adjustments for other
significant non-recurring, infrequent or unusual items. Realized capital
gains and losses and gain (loss) on disposition of operations may vary
significantly between periods and are generally driven by business
decisions and external economic developments such as capital market
conditions, the timing of which is unrelated to the insurance
underwriting process. Consistent with our intent to protect results or
earn additional income, operating income (loss) includes periodic
settlements and accruals on certain derivative instruments that are
reported in realized capital gains and losses because they do not
qualify for hedge accounting or are not designated as hedges for
accounting purposes. These instruments are used for economic hedges and
to replicate fixed income securities, and by including them in operating
income (loss), we are appropriately reflecting their trends in our
performance and in a manner consistent with the economically hedged
investments, product attributes (e.g., net investment income and
interest credited to contractholder funds) or replicated investments.
Non-recurring items are excluded because, by their nature, they are not
indicative of our business or economic trends. Accordingly, operating
income (loss) excludes the effect of items that tend to be highly
variable from period to period and highlights the results from ongoing
operations and the underlying profitability of our business. A byproduct
of excluding these items to determine operating income (loss) is the
transparency and understanding of their significance to net income
variability and profitability while recognizing these or similar items
may recur in subsequent periods. Operating income (loss) is used by
management along with the other components of net income (loss) to
assess our performance. We use adjusted measures of operating income
(loss) and operating income (loss) per diluted share in incentive
compensation. Therefore, we believe it is useful for investors to
evaluate net income (loss), operating income (loss) and their components
separately and in the aggregate when reviewing and evaluating our
performance. We note that investors, financial analysts, financial and
business media organizations and rating agencies utilize operating
income (loss) results in their evaluation of our and our industry's
financial performance and in their investment decisions, recommendations
and communications as it represents a reliable, representative and
consistent measurement of the industry and the company and management's
performance. We note that the price to earnings multiple commonly used
by insurance investors as a forward-looking valuation technique uses
operating income (loss) as the denominator. Operating income (loss)
should not be considered as a substitute for net income (loss) and does
not reflect the overall profitability of our business.
The following tables reconcile operating income (loss) and net income
(loss) for the three months and nine months ended September 30, 2009 and
2008.
For the three months ended September 30, Property-Liability Allstate Financial Consolidated Per diluted share(2)
($ in millions, except per share data) 2009 2008 2009 2008 2009 2008 2009 2008
Operating income (loss) $ 501 $ (248 ) $ 95 $ 88 $ 538 $ (190 ) $ 0.99 $ (0.35 )
Realized capital gains and losses ((1)) (290 ) (634 ) (234 ) (599 ) (519 ) (1,288 )
Income tax benefit 102 222 83 209 183 450
Realized capital gains and losses, after-tax (188 ) (412 ) (151 ) (390 ) (336 ) (838 ) (0.62 ) (1.54 )
DAC and DSI accretion relating to realized capital gains and losses, after-tax -- -- 18 110 18 110 0.04 0.20
Reclassification of periodic settlements and accruals on non-hedge derivative
instruments, after-tax 1 (1 ) (1 ) (6 ) -- (7 ) -- (0.01 )
Gain on disposition of operations, after-tax -- -- 1 2 1 2 -- --
Net income (loss) $ 314 $ (661 ) $ (38 ) $ (196 ) $ 221 $ (923 ) $ 0.41 $ (1.70 )
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For the nine months ended September 30, Property-Liability Allstate Financial Consolidated Per diluted share(2)
($ in millions, except per share data) 2009 2008 2009 2008 2009 2008 2009 2008
Operating income $ 1,204 $ 973 $ 245 $ 349 $ 1,289 $ 1,240 $ 2.38 $ 2.25
Realized capital gains and losses ((1)) (403 ) (1,066 ) (156 ) (1,996 ) (550 ) (3,158 )
Income tax benefit (expense) 30 376 (83 ) 698 (56 ) 1,107
Realized capital gains and losses, after-tax (373 ) (690 ) (239 ) (1,298 ) (606 ) (2,051 ) (1.12 ) (3.72 )
DAC and DSI (amortization) accretion relating to realized capital gains and
losses, after-tax -- -- (132 ) 283 (132 ) 283 (0.24 ) 0.51
DAC and DSI unlocking relating to realized capital gains and losses, after-tax -- -- (224 ) -- (224 ) -- (0.42 ) --
Reclassification of periodic settlements and accruals on non-hedge derivative
instruments, after-tax 5 (2 ) -- (16 ) 5 (18 ) 0.01 (0.03 )
Gain (loss) on disposition of operations, after-tax -- -- 4 (4 ) 4 (4 ) 0.01 (0.01 )
Net income (loss) $ 836 $ 281 $ (346 ) $ (686 ) $ 336 $ (550 ) $ 0.62 $ (1.00 ) A service of YellowBrix, Inc.
