3 Things Investors Need to Watch When The Allstate Corporation (ALL) Reports Earnings

Page 1 of 2

So far, property and casualty insurance companies The Chubb Corporation (NYSE:CB) and The Travelers Companies, Inc. (NYSE:TRV) have reported 2012 fourth-quarter earnings, and things didn’t look bad at all, considering the huge headwind that took the form of last autumn’s Superstorm Sandy. Both companies beat on earnings estimates, boding well for fellow insurer The Allstate Corporation (NYSE:ALL) , which reports later this week.

In addition to how Sandy’s landfall affected the big insurer, investors will want to be on the lookout for a couple of other metrics, too, such as a net increase in written premiums, as well as premium rate increases that may be planned for the current year.

The Allstate Corporation (NYSE:ALL)Sandy buffeted insurers in the fourth quarter
Not only was this storm a real doozy, leaving much destruction in its wake, but governors in the hard-hit Northeastern states of Connecticut, New York, and New Jersey had the storm reclassified as a tropical storm, potentially subjecting the insurers to a slew of additional claims.

Both Chubb and Travelers seemed to weather that pretty well, possibly due to the fact that much of the damage was because of flooding rather than wind, the former being covered by the National Flood Insurance Program. Chubb reported pre-tax Sandy-related expenses of $882 million, and Travelers claimed $669 million in after-tax losses tied to that storm.

What is Allstate’s estimate for Sandy’s impact? The insurer had previously estimated its catastrophic losses for October 2012 as $1.08 billion, pre-tax and net of reinsurance. The company identified Sandy as the worst of five catastrophic events that month, so that storm’s amount should be less than that total. Originally, Allstate had reported that losses would be much higher — around $150 million or so – so the lower figure was a relief.

Good news on premiums?
Little movement was seen in net written premiums for Chubb, which reported its total decreased by 2%, and Travelers, which saw a 2% hike in those numbers. As for increasing premium costs for customers, Travelers announced a planned rate increase in late 2011, and Chubb’s third-quarter report noted that the insurer had been able to increase premiums in all three of its business sections.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!