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$ALL's Esurance brand expense ratio fell 5.7 points in 2015 compared to 2014. Esurance advertising expenses slid in conjunction with its profitability actions. The Esurance brand expense ratio also includes purchased intangible assets that are amortized on an accelerated basis with over 80% of the amortization taking place by 2016.
$ALL announced estimated catastrophe losses, net of reinsurance recoveries, for the month of August 2017 of $593MM, pre-tax, or $385MM after-tax. Catastrophe losses occurring in August comprised 6 events at an estimated net cost of $591MM, pre-tax, plus unfavorable reserve reestimates of prior reported catastrophe losses.
Personal lines insurer $ALL reported increased 1Q17 profit, mostly due to higher investment results. Net income rose to $666MM, or $1.64 per share, compared to $217MM, or $0.57 per share during 1Q16. Consolidated revenues rose 6.3% to $9.4Bil from $8.9Bil.
$ALL is focusing on a strategic deployment of agencies where it goes through a thorough and sophisticated analysis of market potential by geography in order to decide where to place them. The company aims to reach places where it has not established itself. $ALL is using data analysis and decision sciences to help recruit better professionals.
$ALL said in higher growth markets like Allstate Benefits, the company has had 9% compound annual growth rate for the past 17 years and continues to get mid-teens returns from the business, and so it tries to grow rapidly here. In newer markets, $ALL is building a stronger strategic position, including growth and capabilities.
$ALL returned $1.8Bil in cash to shareholders in 2016 through a combination of $486MM in dividend and a repurchase of over 5% of the shares outstanding at the beginning of the year. As of Dec. 31, 2016, there was $691MM remaining on $1.5Bil repurchase program.
$ALL reported that homeowners business generated attractive returns despite higher catastrophe losses. In 2017, $ALL expects to grow customer base through continued policy growth in Allstate Benefits and Insurance, rapid growth in newly acquired consumer protection plan business and the number of policy losses under the Allstate Encompass brand.
During 4Q16, $ALL's net investment income rose 12.8% YoY to $91MM. The This increase reflects strong performance-based results partially offset by lower interest income on market-based investments, which was impacted by reinvestment and portfolio repositioning.
Personal lines insurer $ALL reported 76% rise in its 4Q16 earnings, helped by higher revenues. Net income attributable to common shareholders was $811MM, or $2.18 per share compared to $460MM, or $1.18 per share during 4Q15. Revenue rose 6.8% YoY to $9.27Bil from $8.69Bil during 4Q15.
$ALL's BoD declared a quarterly dividend of 33 cents per outstanding share of its common stock. The dividend is payable in cash on Jan. 3, 2017 to stockholders of record on Nov. 30, 2016. $ALL returned $389MM to shareholders during 3Q16 through combination of common stock dividends and common share repurchases.
$ALL's shareholders' equity rose to $20.9Bil in 3Q16, with a debt-to-capital ratio of 19.6%, a decline of 0.4 points from a year ago. Book value per common share of $51.48 grew by 8.3% over last year, mainly due to increased unrealized gains in the investment portfolio and income generation, partially offset by capital return to shareholders.
$ALL's Property-Liability recorded combined ratio was 95.5 for 3Q16, and the underlying combined ratio was 88 both for the quarter and the first nine months of 2016, which is at the favorable end of a full year outlook given in Feb. of 88-90. Total investment returns were at 1.3% for the quarter and 5.2% for the year to date.
$ALL's net investment income for 3Q16 declined by $59MM YoverY to $748MM. This decline reflects lower interest income on market-based investments, driven by the Allstate Financial annuity portfolio repositioning. Solid performance-based results were lower compared to a strong prior year quarter.
Insurance giant $ALL reported a 20.9% drop in 3Q16 earnings due to higher catastrophe losses. Net income fell to $491MM or $1.31 per share from $621MM or $1.54 per share last year. Revenue grew to $9.22Bil from $9.03Bil. Operating EPS decreased 17.1% to $1.26.