Insurer Allstate's Q4 revenue beats expectations

Overview

• Insurance provider's Q4 revenue rose 5.1%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company announced $4 bln share repurchase program

Outlook

• Company did not provide specific guidance for future quarters or year

Result Drivers

• PREMIUM REDUCTIONS - Co reduced premiums for 7.8 mln auto and homeowners insurance customers by an average of 17% to offset cost inflation

• UNDERWRITING INCOME - Higher average earned premiums and lower catastrophe losses led to increased underwriting income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Allstate Corp is $242.00, about 16.8% above its February 4 closing price of $207.12

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

Press Release: ID:nPn1NJMLTa

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