Allstate has reported that its net income rose by 46.2% to $766m for the first quarter of 2012, or $1.53 per diluted share compared to a net income of $524m, or $0.98 per diluted share in the same period in 2011.
Allstate chairman, president and chief executive officer Thomas Wilson said the firm was focused on improving returns while executing a strategy to offer unique products to different customer segments generated strong results in the first quarter.
"Maintaining margins in auto insurance and continued implementation of our homeowner profit improvement program resulted in solid returns in our property-casualty business. Allstate Financial had increased operating and net income reflecting its return improvement program and increased partnership income," Wilson added.
"Investment returns were also good as higher earnings from limited partnerships and proactive management of the portfolio offset the continuing impact of low interest rates. As a result, this quarter book value per share increased 6.6%, the dividend was increased by 5% to $.22 per share, and $300 million of common stock was repurchased."
Operating income stood at $710m up by 43.72%, or $1.42 per diluted share, versus $494m, or $0.93 per diluted during the same period a year ago.
Allstate Financial segment's net income rose by 9.8% to $112m from the prior year, backed by an increase in operating income and absence of the loss on wind-down of its banking business in 2011, partially offset by current year realized capital losses compared to prior year realized capital gains.
For the current quarter period, Allstate Financial operating income stood at $150m compared to $113m during the corresponding quarter last year.
As of 31 March 2012, Allstate's consolidated investment portfolio summed up to $97bn against $95.6bn compared to the fourth quarter of 2011.
