Overview

• U.S. insurance provider's Q1 revenue rose 3% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company cites lower catastrophe losses and reserve releases for improved underwriting results

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• UNDERWRITING IMPROVEMENT - Lower catastrophe losses and reserve releases led to a stronger property-liability combined ratio and higher underwriting income

• POLICY GROWTH - Increased policies in force, especially in auto and homeowners insurance, drove premium and revenue growth

• INVESTMENT INCOME - Higher investment income contributed to earnings, reflecting portfolio growth and higher fixed income yields

Company press release: ID:nPn2Fwd1pa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$16.94 bln	$15.10 bln (5 Analysts)
Q1 Adjusted EPS	Beat	$10.65	$7.29 (20 Analysts)
Q1 Adjusted Net Income	Beat	$2.80 bln	$1.90 bln (12 Analysts)
Q1 Net Income		$2.43 bln
Q1 Adjusted Combined Ratio		80.30%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Allstate Corp is $237.50, about 11.9% above its April 29 closing price of $212.33

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

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