Earnings Document
For Immediate Release İ
First Quarter Results Summary
-
•Net income of
$606 million , or$0.73 per share, compared to net income of$290 million , or$0.33 per share, in the first quarter of 2021. -
•Adjusted earnings of
$1.7 billion , or$2.08 per share, compared to adjusted earnings of$2.0 billion , or$2.20 per share, in the first quarter of 2021. -
•Book value of
$61.55 per share, down 12 percent from$70.08 per share atMarch 31, 2021 . -
•Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of
$57.12 per share, up 7 percent from$53.16 per share atMarch 31, 2021 . -
•Retuon equity (ROE) of 4.3 percent.
-
•Adjusted ROE, excluding AOCI other than FCTA, of 14.7 percent.
-
•Holding company cash and liquid assets of
$4.2 billion atMarch 31, 2022 , which is above the target cash buffer of$3.0 -$4.0 billion .
"Building on our outstanding performance in 2021,
First Quarter 2022 Summary
($ in millions, except per share data) Three months ended 2021 Change Premiums, fees and other revenues Net investment income 4,284 5,314 (19)% Net investment gains (losses) (518) 134 Net derivative gains (losses) (859) (2,235)Total revenues Adjusted premiums, fees and other revenues |
||
Adjusted premiums, fees and other revenues, excluding pension risktransfers (PRT) |
|
1% |
Net income (loss)
|
||
Adjusted earnings, excluding total notable items per share |
|
(5)% |
Book value per share (12)% |
||
Book value per share, excluding AOCI other than FCTA |
|
7% |
Expense ratio 17.6 % 19.0 % |
||
Direct expense ratio, excluding total notable items related to directexpenses and PRT 11.7 % |
11.0 % |
|
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT 19.2 % 19.0 %ROE Adjusted ROE, excluding AOCI other than FCTA 4.3 % 14.7 % 1.8 % 16.5 % |
||
Adjusted ROE, excluding total notable items (excludes AOCI otherthan FCTA) |
14.7 % |
16.5 % |
Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in "Non-GAAPand Other Financial Disclosures" below and in the tables that accompany this news release.
Supplemental slides for the first quarter of 2022, titled "1Q22 Supplemental Slides," areavailable on the
Total Company Discussion
Net investment income was
Net derivative losses amounted to
Net income was
Adjusted Earnings by Segment Summary*
Three months ended |
||
Segment |
Change from prior-year period |
Change from prior-year period (on a constant currency basis) |
|
(12)% |
|
|
(7)% |
(4)% |
|
255% |
358% |
|
(27)% |
(15)% |
|
(39)% |
* The percentages in this table are on a reported and constant currency basis, and do not exclude notable items.
Business Discussions
All comparisons of the results for the first quarter of 2022 in the business discussions that follow are with the first quarter of 2021, unless otherwise noted. The first quarter of 2022 notable items table follows the Business Discussions section of this release.
($ in millions) |
Three months ended |
Three months ended |
Change |
Adjusted earnings |
|
|
(12)% |
Adjusted premiums, fees and other revenues |
|
|
23% |
Adjusted premiums, fees and other revenues, excluding PRT |
|
|
4% |
Notable item(s) |
|
|
-
•Adjusted earningswere
$693 million , down 12 percent, primarily driven by lower variable investment income. A decline in COVID-19 life insurance claims and favorable volume growth were partial offsets. -
•Adjusted retuon allocated equitywas 24.3 percent, and adjusted retuon allocated tangible equity was 32.6 percent.
-
•Adjusted premiums, fees and other revenueswere
$7.9 billion , up 23 percent, driven byhigher pension risk transfer sales and solid growth across Group Benefits.
Group Benefits
($ in millions) |
Three months ended |
Three months ended |
Change |
Adjusted earnings |
|
|
20% |
Adjusted premiums, fees and other revenues |
|
|
7% |
Notable item(s) |
|
|
-
•Adjusted earningswere
$112 million , up 20 percent, primarily driven by a decline in COVID-19 life insurance claims and favorable volume growth. -
•Adjusted premiums, fees and other revenueswere
$6.0 billion , up 7 percent, primarily driven by solid growth across most products, including voluntary, and the impact of participating contracts, where premiums, fees and other revenues can fluctuate with claims experience. -
•Saleswere down 31 percent due to higher jumbo case activity in the prior-year period.
Retirement and Income Solutions
($ in millions) |
Three months ended |
Three months ended |
Change |
Adjusted earnings |
|
|
(16)% |
Adjusted premiums, fees and other revenues |
|
|
149% |
Adjusted premiums, fees and other revenues, excluding PRT |
|
|
(17)% |
Notable item(s) |
|
|
-
•Adjusted earningswere
$581 million , down 16 percent, largely driven by lower variable investment income, partially offset by volume growth. -
•Adjusted premiums, fees and other revenueswere
$1.9 billion , up 149 percent, largely driven by higher pension risk transfer sales. -
•Excluding pension risk transfers, adjusted premiums, fees and other revenueswere
$625 million , down 17 percent, primarily due to higher single-premium annuity and life insurance sales in the prior-year period. -
•Saleswere up 6 percent, primarily driven by stable value products and pension risk transfers.
($ in millions) |
Three months ended |
Three months ended |
Change |
Adjusted earnings |
|
|
(7)% |
Adjusted earnings (constant currency) |
|
|
(4)% |
Adjusted premiums, fees and other revenues |
|
|
(6)% |
Notable item(s) |
|
|
|
|
|
|
2% |
-
•Adjusted earningswere
$580 million , down 7 percent on a reported basis, and down 4 percent on a constant currency basis, largely driven by lower recurring interest margins and less favorable equity markets. Volume growth was a partial offset. -
•Adjusted retuon allocated equitywas 16.1 percent, and adjusted retuon allocated tangible equity was 24.1 percent.
-
•Adjusted premiums, fees and other revenueswere
$2.0 billion , down 6 percent, and up 1 percent on a constant currency basis. -
•
Asia general account assets under management (at amortized cost)were$129.9 billion , up 2 percent, and up 7 percent on a constant currency basis. -
•Saleswere
$582 million , up 2 percent on a constant currency basis, primarily driven by strong sales inJapan .
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