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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

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!