The Allstate Corporation is an American Insurance company and still become one of the biggest insurance companies in The United States of America (USA). Historically, Allstate was launched on April 17, 1931, as the Great Depression happened, and Americans struggled with financial insecurity. As a holding company, its business is conducted principally through Allstate Insurance Company and other subsidiaries.
Operationally, in its business, this company has some business in insurance industries. The main business is in Vehicle insurance (Auto, Motorcycle, ATV/off-road, Roadside, Snowmobile, Boat, RV, and Car Ownership Center), Property insurance (Homeowners, Renters, Condo, and Landlord), Life, identity protection, phone protection, and other (Personal umbrella policy, Retirement, Allstate Health Solutions, Voluntary employee benefits, Pet, and Event). Officially, this company still has main office in Northbrook, Illinois, U.S.
As of 2021, according to A.M. Best., this company has become one of the main leader insurance companies in United States of America. In personal lines insurance, Allstate has market share around 9.8% in the United States, meanwhile, in Private Passenger Auto Insurance, allstates insurance company has market share around 10.4%, and in Home Insurance, this company has market share around 8.5 %. Based on the geographical market in United States of America (USA), Allstate has some market in some regions in United States of America (USA) Texas around 11.4 %, California 11 %, New York 8.8% and Florida 7.2%. To strengthen its business, The Allstate Corporation had completed the Acquisitions National General Holdings Corp. (“National General”), On January 4, 2021. Furthermore, All States Insurance also had acquired Safe Auto Insurance Group, Inc. (“SafeAuto”), a non-standard auto insurance carrier On October 1, 2021, with cost around $262 million.
The Financial Position of The Allstate Corporation from Time To Time
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| $ in millions | $ in millions | $ in millions | |
| 2010 | 130,874 | 111,830 | 19,044 |
| 2011 | 125,563 | 106,861 | 18,702 |
| 2012 | 126,947 | 106,367 | 20,580 |
| 2013 | 123,520 | 102,040 | 21,480 |
| 2014 | 108,533 | 86,229 | 22,304 |
| 2015 | 104,656 | 84,631 | 20,025 |
| 2016 | 108,610 | 88,037 | 20,573 |
| 2017 | 112,422 | 89,871 | 22,551 |
| 2018 | 112,249 | 90,937 | 21,312 |
| 2019 | 119,950 | 93,952 | 25,998 |
| 2020 | 125,987 | 95,770 | 30,217 |
| 2021 | 99,440 | 74,313 | 25,127 |
| 2022 | 97,957 | 80,607 | 17,350 |
| Source : Annual Report, 2010-2022 | |||
In this article, Allstate Corporation Financial Performance can be summarized from some period of time. All of the financial data came from Balance sheet, Annual report of the company in 2010 to 2022. Basically, balance sheet is the sheet that consist of 3 elements, namely assets, liabilities, and equities. Assets is the physical and non-physical properties that company has owned in running its business. Meanwhile, liabilities is the obligation or debts that company has paid off from time to time. Furthermore, equities is the difference value between assets and liabilities. Some people called equities as “Net Assets” .
In balance sheet from 2010 to 2022, the company showed the up and down performance. It is in the assets. Assets in 2010 around $ 130 billion but it has decreased until 2015. In that year, 2015, the assets is in the lowest level with value around $ 104 billion. After the year of 2015, the assets increased again until 2020. in that years,the assets is around $ 125 billion. In 2022, assets of The Allstate Corporation went back down to the lowest level to $ 97 billion.
Based on financial position, meanwhile, Liabilities also showed the decreased trend from time time. In 2010, the liabilities value around 111 billion US Dollars and it decreased until $ 80 billion in 2022. Furthermore, the equities still in the upward trend. In 2010, the equities is around $ 19 billion and it can increase from time to time until $ 30 billion in 2020. In the 2022, the equities are around $ 17 billion and It goes down around $ 8 billion than 2021.
The Business Performance of The Allstate Corporation from Time To Time
| Years | Revenue | Net Income |
|---|---|---|
| $ in millions | $ in millions | |
| 2009 | 32,013 | 854 |
| 2010 | 31,400 | 928 |
| 2011 | 32,654 | 788 |
| 2012 | 33,315 | 2,306 |
| 2013 | 34,507 | 2,280 |
| 2014 | 35,239 | 2,850 |
| 2015 | 35,653 | 2,171 |
| 2016 | 36,534 | 1,877 |
| 2017 | 39,407 | 3,554 |
| 2018 | 39,815 | 2,160 |
| 2019 | 44,675 | 4,847 |
| 2020 | 41,909 | 5,576 |
| 2021 | 50,588 | 1,566 |
| 2022 | 51,412 | -1,416 |
| Source : Annual Report, 2010-2022 | ||
The data of business performance of The Allstate Corporation came from consolidated Income Statement in Annual Report. Basically, Income statement is the financial report that describes the company in running the business effectively and efficiently. In business performance, based on the income statement of the company from 2010 to 2021, the revenue company has relatively up and down performance, the lowest value of revenue happened in 2010 with value around $ 31 billion and can gained the biggest level in 2022 with value around $ 51 billion.
Meanwhile, the income of the company had the same way. The lowest generated income of company is around 2009 with value around $ 854 million and the highest generated income happened in 2020 with value around $ 5.5 billion. Overall, the trends of income still in the unstable conditions with increasing trend happened from 2009 to 2014 and decreasing trend happened from 2015 to 2016 and from 2017 to 2019. In 2022, the company suffered net loss around $ 1.4 billion.
In this article, we also calculate some financial indicators. These indicators that we calculated is Debt-to-Equity (D/E) ratio, Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE). The calculation of Debt-to-Equity ratios of The Allstate Corporation from 2010 to 2022 around 4.3 on average with the lowest value around 3.9 in 2017 and the highest value around 5.8 in 2010. Basically, this D/E ratio must be in the least value. The higher the value of D/E Ratio describes the bigger increasing value of the debts from time to time than its equities.
Furthermore, net profit margin can be used to measure the efficiency of the company in running the business. The bigger value of Net profit margin showed the company running business more efficient. The efficiency in these aspects can be looked at the cost in running its business. Basically, the average value of Net profit Margin of The Allstate Corporation is around 7% with biggest value happened 2013 with value around 13% and lowest value around 2% in 2011. In addition, the value return on Assets (ROA) and Return of Equities (ROE) are in the average around 2% and 11%, respectively.
Bibliography of The Allstate Corporation Financial Performance from Time to Time
The Allstate Corporation. 2022.Allstate Annual Report. Accessed via https://www.allstatecorporation.com/about/annual-report.aspx on May 8th, 2023.
The Allstate Corporation. 2022.Our History. Accessed via https://www.allstatecorporation.com/about/our-history.aspx on May 8th, 2023.
The Allstate Corporation. 2022.Allstate Investor Relations. Accessed via https://www.allstateinvestors.com/ on May 8th, 2023.
