Allstate Corp (NYSE: ALL) stock rose over 6.1% on 31st July, 2019 (As of 11:10 am GMT-4; Source: Google finance) after the company beats the earnings estimate for the second quarter of FY 19. Allstate Life has posted the adjusted net income was $68 million in the second quarter of 2019, $12 million lower than the prior year quarter, as higher contract benefits and expenses were partially offset by increased premiums.
Allstate Benefits has posted the adjusted net income was $37 million in the second quarter of 2019, $1 million higher than the prior year quarter, as increased revenue was partially offset by higher operating costs and expenses. Allstate Annuities has posted the adjusted net income of $52 million in the second quarter of 2019 was $8 million higher than the prior year quarter due to increased performance-based investment income. Overall, ALL’s adjusted net income had totaled $735 million in the second quarter was above the prior year quarter due to higher earned premium and net investment income, partially offset by increased catastrophe losses.
Moreover, ALL’s adjusted net income return on common shareholders’ equity was 13.5% for the 12 months ended June 30, 2019. ALL has returned $664 million of capital to shareholders during the second quarter through a combination of $166 million in common stock dividends and repurchasing $498 million of outstanding shares, including the settlement of the accelerated share repurchase program. Book value per diluted common share of $67.28 was 13.7% higher than June 30, 2018, reflecting strong income generation and appreciation of the investment portfolio.
ALL in the second quarter of FY 19 has reported the adjusted earnings per share of $2.18, beating the analysts’ estimates for the adjusted earnings per share of $1.48, as per Zacks Investment Research. The company had reported the adjusted revenue growth of 10.3 percent to $10.82 billion in the second quarter of FY 19. The revenue grew on back of Property-Liability insurance premiums earned increased 6.0%. Net investment income also grew by 14.3% and realized capital gains increased revenues by $324 million.
Additionally, Property-Liability underwriting income of $367 million in the second quarter of 2019 was $88 million below the prior year quarter, mainly due to higher catastrophe losses. Service Businesses policies in force grew to 89.7 million, and revenues increased 26.6% compared to the second quarter of 2018. Allstate Investments $86 billion portfolio generated a strong total return of 2.8% in the second quarter of 2019, and net investment income was $942 million, an increase of $118 million from the prior year quarter.