The results were benefited by lower catastrophe losses and lower effective tax rate. This was partially offset by higher property and casualty insurance non-catastrophe claims losses, higher amortization of DAC for property and casualty businesses and Allstate Life.
An increase in insurance premiums drove total revenues higher by 5.8% to $10.47 billion. Insurance premiums increased in the following segments: Allstate Protection (Allstate brand and Esurance), Service Businesses, Allstate Benefits, and Allstate Life.
Hurricane Florence might not dent insurance industry as expected
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The Property-Liability combined ratio increased to 94.3 from 93.9 in the previous year quarter. Net investment income was flat in the third quarter of 2018, compared to last year.
On October 31, 2018, the Board authorized a new $3 billion common share repurchase program that is expected to be completed by April 2020.
As of September 30, 2018, shareholders’ equity was $23.63 billion, including $3.38 billion in deployable assets at the parent holding company level comprising cash and investments that are generally saleable within one quarter.
Shares of Allstate ended Wednesday’s regular session up 0.24% at $95.72 on the NYSE. The stock has fallen over 8% in the year so far while it has risen over 1% in the past year.