Allstate reported their fourth quarter and full year 2002 results. Some key highlights:
- Q4 2002 net income was $447 million, up 69% from Q4 2001. Full year 2002 net income was $1.13 billion, down slightly from 2001.
- Q4 2002 operating income was $618 million, up 100% from Q4 2001. Full year 2002 operating income was $2.08 billion, up from $1.49 billion in 2001.
- Results were driven by increased premiums earned, improved loss frequencies, and increased investment income, partly offset by higher claims severities and catastrophe losses.
- For 2003, Allstate expects operating income per share of $3.20-$3
allstate Quarterly Investor Information 2002 3rd finance7
The Allstate Corporation reported higher net income and operating income in the third quarter of 2002 compared to the same period in 2001. Operating income increased to $548 million from $401 million due primarily to increased property-liability premiums earned, improved auto and homeowners loss frequencies, and lower catastrophe losses. However, these gains were partly offset by reserve strengthening for asbestos and environmental losses and decreased operating income at Allstate Financial. For the full year 2002, Allstate anticipates operating income per share will be between $2.80 to $3.00, excluding restructuring charges.
allstate Quarterly Investor Information 2003 2nd finance7
Allstate reported strong financial results for the second quarter of 2003, with net income increasing 70.9% compared to the second quarter of 2002. Operating income increased 32.2% driven by an improvement in Property-Liability Underwriting income. However, catastrophe losses also increased significantly. Overall results were positively impacted by higher premiums, continued improvement in auto and homeowners claim frequencies, and lower prior year reserve strengthening, despite higher catastrophes. Allstate increased its full year 2003 operating income guidance.
allstate Quarterly Investor Information Earnings Press Release 2003 3rd finance7
Allstate reported strong financial results for the third quarter of 2003, with net income increasing 177% compared to the third quarter of 2002. Operating income also increased, driven by higher underwriting income in Property-Liability from increased premiums earned and favorable loss trends, partially offset by higher catastrophe losses. Premiums and deposits for Allstate Financial reached a record level. The company increased its guidance for full-year 2003 operating income per share.
allstate Quarterly Investor Information 2002 1stfinance7
The Allstate Corporation reported financial results for the first quarter of 2002, with net income of $426 million, down from $500 million in the same period the previous year. Operating income was $488 million compared to $552 million in 2001. While revenues grew slightly by 2.3%, increased loss costs and decreased investment income contributed to the decline in profits. The company remains on track to meet its full-year earnings guidance despite challenges from higher claims in areas like Texas and ongoing cost pressures.
allstate Quarterly Investor Information 2001 4thfinance7
- Allstate reported lower operating income for Q4 2001 and full year 2001 compared to the same periods in 2000, due to increased loss costs, restructuring expenses, and lower investment income, partly offset by higher premiums.
- For Q4 2001, operating income was $309 million compared to $584 million in Q4 2000. For full year 2001, operating income was $1.49 billion compared to $2 billion in 2000.
- Allstate provided guidance for 2002 operating income per share of $2.50-$2.70, expecting improvement in results later in 2002 as pricing and underwriting actions take effect.
allstate Quarterly Investor Information 2003 4th Earnings Press Release finance7
Allstate reported strong financial results for Q4 2003 and full year 2003. Net income increased 71% for Q4 and 138.5% for the full year compared to the previous periods. Operating income also increased significantly. For Q4, property-liability underwriting income increased 272% due to higher premiums and continued favorable loss trends, partially offset by higher catastrophe losses. Allstate also increased its quarterly dividend by 22% and added $1 billion to its share repurchase program. The company expects continued momentum and profitability in 2004.
allstate Quarterly Investor Information Earnings Press Release 2004 3rdfinance7
Allstate reported financial results for Q3 2004. While underlying business remained strong with increased premiums and policies in force, catastrophe losses from Hurricanes Charley, Frances, Ivan and Jeanne totaling $1.71 billion resulted in a net loss of $56 million compared to a $691 million profit in Q3 2003. Premiums and deposits for Allstate Financial increased to $4.02 billion for the quarter. Allstate revised its 2004 annual operating income per share guidance downward due to higher than expected catastrophe losses.
This document summarizes Viacom's financial results for the second quarter and first half of 2008. Key highlights include:
- Revenues for Q2 2008 increased 21% to $3.9 billion and increased 18% to $7 billion for the first half.
- Operating income for Q2 2008 increased 13% to $792 million and increased 19% to $1.4 billion for the first half.
- Earnings per share from continuing operations for Q2 2008 increased 2% to $0.64 and increased 15% to $1.06 for the first half.
- Media Networks revenues increased 11% in Q2 2008 and 14% for the first half, driven by increases in affiliate fees
allstate Quarterly Investor Information 2002 3rd finance7
The Allstate Corporation reported higher net income and operating income in the third quarter of 2002 compared to the same period in 2001. Operating income increased to $548 million from $401 million due primarily to increased property-liability premiums earned, improved auto and homeowners loss frequencies, and lower catastrophe losses. However, these gains were partly offset by reserve strengthening for asbestos and environmental losses and decreased operating income at Allstate Financial. For the full year 2002, Allstate anticipates operating income per share will be between $2.80 to $3.00, excluding restructuring charges.
allstate Quarterly Investor Information 2003 2nd finance7
Allstate reported strong financial results for the second quarter of 2003, with net income increasing 70.9% compared to the second quarter of 2002. Operating income increased 32.2% driven by an improvement in Property-Liability Underwriting income. However, catastrophe losses also increased significantly. Overall results were positively impacted by higher premiums, continued improvement in auto and homeowners claim frequencies, and lower prior year reserve strengthening, despite higher catastrophes. Allstate increased its full year 2003 operating income guidance.
allstate Quarterly Investor Information Earnings Press Release 2003 3rd finance7
Allstate reported strong financial results for the third quarter of 2003, with net income increasing 177% compared to the third quarter of 2002. Operating income also increased, driven by higher underwriting income in Property-Liability from increased premiums earned and favorable loss trends, partially offset by higher catastrophe losses. Premiums and deposits for Allstate Financial reached a record level. The company increased its guidance for full-year 2003 operating income per share.
allstate Quarterly Investor Information 2002 1stfinance7
The Allstate Corporation reported financial results for the first quarter of 2002, with net income of $426 million, down from $500 million in the same period the previous year. Operating income was $488 million compared to $552 million in 2001. While revenues grew slightly by 2.3%, increased loss costs and decreased investment income contributed to the decline in profits. The company remains on track to meet its full-year earnings guidance despite challenges from higher claims in areas like Texas and ongoing cost pressures.
allstate Quarterly Investor Information 2001 4thfinance7
- Allstate reported lower operating income for Q4 2001 and full year 2001 compared to the same periods in 2000, due to increased loss costs, restructuring expenses, and lower investment income, partly offset by higher premiums.
- For Q4 2001, operating income was $309 million compared to $584 million in Q4 2000. For full year 2001, operating income was $1.49 billion compared to $2 billion in 2000.
- Allstate provided guidance for 2002 operating income per share of $2.50-$2.70, expecting improvement in results later in 2002 as pricing and underwriting actions take effect.
allstate Quarterly Investor Information 2003 4th Earnings Press Release finance7
Allstate reported strong financial results for Q4 2003 and full year 2003. Net income increased 71% for Q4 and 138.5% for the full year compared to the previous periods. Operating income also increased significantly. For Q4, property-liability underwriting income increased 272% due to higher premiums and continued favorable loss trends, partially offset by higher catastrophe losses. Allstate also increased its quarterly dividend by 22% and added $1 billion to its share repurchase program. The company expects continued momentum and profitability in 2004.
allstate Quarterly Investor Information Earnings Press Release 2004 3rdfinance7
Allstate reported financial results for Q3 2004. While underlying business remained strong with increased premiums and policies in force, catastrophe losses from Hurricanes Charley, Frances, Ivan and Jeanne totaling $1.71 billion resulted in a net loss of $56 million compared to a $691 million profit in Q3 2003. Premiums and deposits for Allstate Financial increased to $4.02 billion for the quarter. Allstate revised its 2004 annual operating income per share guidance downward due to higher than expected catastrophe losses.
This document summarizes Viacom's financial results for the second quarter and first half of 2008. Key highlights include:
- Revenues for Q2 2008 increased 21% to $3.9 billion and increased 18% to $7 billion for the first half.
- Operating income for Q2 2008 increased 13% to $792 million and increased 19% to $1.4 billion for the first half.
- Earnings per share from continuing operations for Q2 2008 increased 2% to $0.64 and increased 15% to $1.06 for the first half.
- Media Networks revenues increased 11% in Q2 2008 and 14% for the first half, driven by increases in affiliate fees
- Bank of America reported third quarter 2006 results with total revenue of $18.961 billion, an 11% increase from third quarter 2005, and net income of $5.416 billion, a 20% increase.
- Net interest income was $8.894 billion, a 1% increase, impacted by the sale of Brazilian operations and prior year FAS 133 impact. Noninterest income increased 20% to $10.067 billion.
- Global Consumer & Small Business Banking reported net income of $2.889 billion, a 13% increase, driven by increases in cards, deposits, and debit purchase volume.
Danaher Corporation announced record results for the second quarter and first half of 2005. Net earnings for the second quarter increased 25.5% compared to 2004, and sales increased 19%. For the first six months, net earnings increased 27.5% and sales increased 19%. The company's president stated that growth from existing businesses accounted for 5.5% sales growth in the quarter and that the company saw broad-based strength across its businesses.
Services - GMAC Annual and Fourth Quarter Earnings finance8
GMAC reported full year net income of $2.1 billion in 2006, down from $2.3 billion in 2005. The residential mortgage market experienced a slowdown due to declining home prices and weakness in nonprime credit. Auto finance results were stable despite one-time costs. Insurance reported record earnings through robust underwriting. ResCap results were negatively impacted by $839 million due to homebuilder equity sales and nonprime mortgage market deterioration.
Raytheon reported strong financial results for the fourth quarter and full year 2006. Quarterly sales increased 12% to $5.7 billion due to growth at Integrated Defense Systems, Missile Systems, and Network Centric Systems. Earnings per share from continuing operations increased 27% to $0.65 for the quarter. For the full year, sales increased 7% to $20.3 billion and earnings per share from continuing operations increased 37% to $2.46. Raytheon also provided guidance for 2007, forecasting earnings per share from continuing operations between $2.85 to $3.00 on sales between $21.4 to $21.9 billion.
allstate Quarterly Investor Information 2005 4th Earnings Press Releasefinance7
- Allstate reported Q4 2005 net income of $1.041 billion and operating income of $975 million, despite catastrophe losses of $657 million.
- Premiums grew 2.4% in Q4 driven by increases in auto and homeowners. However, catastrophe losses increased the combined ratio to 89%.
- For 2005, operating income per share was $2.37, down from $4.41 in 2004 due to higher catastrophe losses which increased by $3.12 per share.
- Allstate provided guidance for 2006 operating income per share of $5.60 to $6.00, assuming average catastrophe losses of 6% of premiums.
Bank of America reported first quarter 2007 results with key highlights as follows:
- Earnings of $5.3 billion and diluted EPS of $1.16, up 8% from first quarter 2006.
- Total revenue grew 3% to $18.4 billion compared to first quarter 2006, driven by a 10% increase in noninterest income, though net interest income declined 5%.
- Credit quality remained sound though provision expenses increased 23% compared to first quarter 2006 as credit costs trend toward more normal levels.
- Global Wealth and Investment Management saw client assets reach new highs of $547 billion and added over 500 premier banking sales associates over the past year.
- Bank of America reported second quarter 2006 results, with net income of $5.58 billion excluding merger charges, up 4% from the second quarter of 2005.
- The Global Consumer & Small Business Bank saw strong growth, with net income up 42% to $3.11 billion driven by increases in cards and deposits.
- The Global Corporate & Investment Bank reported net income of $1.72 billion, flat compared to the second quarter of 2005.
- Ameriprise Financial reported a 14% increase in net income for Q3 2007 to $198 million compared to Q3 2006. Adjusted earnings increased 3% to $237 million, excluding separation costs.
- Earnings per share increased 17% to $0.83 for Q3 2007 compared to Q3 2006, while adjusted earnings per share increased 5% to $0.99.
- Revenues grew 11% to $2.2 billion in Q3 2007 driven by strong growth in management fees, distribution fees, and net investment income from hedges.
This document summarizes Bank of America's second quarter 2009 results. It reported net income of $3.2 billion and diluted EPS of $0.33. Revenue was $33.1 billion. Provision for credit losses was $13.4 billion as the allowance was strengthened for continued economic deterioration. Large items impacting earnings included gains from the sale of China Construction Bank shares and a merchant processing business, but losses from derivative adjustments and capital markets disruption charges. The company continued operating in a challenging economic environment.
allstate Quarterly Investor Information Earnings Press Release 2004 1stfinance7
Allstate reported strong financial results for the first quarter of 2004, with a 43% increase in net income and 52% increase in operating income per share compared to the first quarter of 2003. Operating income reached $1 billion for the first quarter, driven by higher premiums earned in Property-Liability and higher realized capital gains. Property-Liability underwriting income increased 109% due to higher premiums, favorable loss trends, and lower catastrophes. Allstate Financial also saw increases in premiums and deposits as well as operating income. As a result of the strong performance, Allstate increased its full-year 2004 operating income per share guidance.
Raytheon reported strong financial results for Q3 2006, with EPS up 41% and bookings of $6.1 billion. The company increased full-year 2006 guidance for EPS, bookings, operating cash flow and ROIC. Segments such as IDS, MS and RAC saw higher sales and improved operating performance compared to Q3 2005. Raytheon also provided initial guidance for 2007 with projected continued growth.
- Ameriprise Financial reported income before discontinued operations of $111 million for Q4 2005, down from $226 million in Q4 2004, primarily due to one-time separation costs.
- Adjusted earnings, which exclude one-time items, decreased 4% to $193 million compared to $202 million in Q4 2004, due to a lower tax provision in 2004. Revenues grew 5% to $1.9 billion.
- Key highlights included a 6% increase in mass affluent clients, higher advisor productivity, improved investment performance, and a 5% increase in owned, managed, and administered assets to over $428 billion.
allstate Quarter Information 2007 4th Earnings Press Releasefinance7
Allstate reported its fourth quarter and full year 2007 results. Net income for Q4 2007 was $760 million, down from $1.2 billion in Q4 2006 due to higher catastrophe losses and a worse underlying combined ratio. For the full year, net income was $4.6 billion, down slightly from 2006. Allstate's consumer-focused strategy helped grow new auto and home insurance products while maintaining pricing discipline. The Property-Liability combined ratio for 2007 was 89.8%, within guidance. Allstate will continue its focus on consumers, risk and return optimization, operational excellence, and capital management in 2008.
The Clorox Company reported financial results for the second quarter and first half of fiscal year 2009. Net sales increased 3% to $1.216 billion in the quarter and 7% to $2.6 billion in the first six months. Earnings per share were $0.62 for the quarter and $1.52 for the six month period. The North America segment grew net sales 3% to $1.007 billion and earnings 6% to $273 million in the quarter. International sales were flat at $209 million in the quarter but earnings declined 24% to $29 million. Total assets were $4.398 billion against $4.801 billion in total liabilities as of December 31, 2008.
- Bank of America reported third quarter 2007 results with net income of $3.7 billion, down 32% from the third quarter of 2006. Earnings per share were $0.82.
- Revenues declined 12% due to a 24% drop in noninterest income driven by losses in Global Corporate and Investment Banking from market turbulence.
- The provision for credit losses increased 74% to $2.03 billion reflecting increased consumer loan loss rates and impacts from the weakened housing market.
Fifth Third Bancorp reported 2007 earnings of $1.1 billion, or $2.03 per diluted share, compared to $1.2 billion, or $2.13 per diluted share in 2006. Fourth quarter 2007 earnings were $38 million, or $0.07 per diluted share, compared to $325 million, or $0.61 per diluted share in the third quarter of 2007. Results were impacted by non-cash charges including lowering the value of a Bank-Owned Life Insurance policy and reserves related to potential Visa litigation settlements. Excluding these items, operating earnings were lower due to deterioration in credit performance and increased loan loss reserves in response to challenging credit conditions expected to continue in the near
Danaher Corporation announced record third quarter results for 2008. Net earnings from continuing operations increased 11% to $372 million compared to $335 million in the third quarter of 2007. Sales increased 17.5% to $3.21 billion. For the first nine months of 2008, net earnings from continuing operations increased 13.2% to $1.01 billion compared to $894 million for the same period in 2007. Sales for the first nine months increased 20.5% to $9.51 billion. The company's president stated they delivered strong performance in the quarter and expect to continue outperforming during challenging economic times due to their portfolio of businesses and operational excellence initiatives.
Allstate reported strong financial results for the second quarter of 2007, with net income up 16.2% and return on equity reaching 25%. Revenues increased 6.5% due to growth in auto insurance sales and investment income. While operating income declined due to increased catastrophe costs, the underlying business performed well. Allstate also continued share repurchases and reinsurance initiatives to enhance returns and manage catastrophe risk.
Danaher Corporation announced record second quarter results for 2003, with net earnings of $125.1 million, a 21% increase over the previous year. Diluted earnings per share were $0.79, up 20% from 2002. Sales increased 13% to $1.299 billion due to recently completed acquisitions. For the first six months of 2003, net earnings were $228.3 million, a 22% rise, and diluted EPS grew 19% to $1.44, despite a sluggish economic environment. The company expects further growth from targeted opportunities and cost reductions.
Bank of America reported record earnings of $16.9 billion for 2005, up 19% from 2004. Revenue grew 9% to $57.6 billion driven by a 19% increase in noninterest income. Earnings were driven by strong consumer growth and commercial lending recovery, despite higher provision costs and fewer securities gains. For the fourth quarter of 2005, earnings were $3.8 billion, down 9% from the previous quarter due to an 8% decline in noninterest income and a 21% rise in provision for credit losses.
allstate Quarterly Investor Information 2001 3rd finance7
- For the third quarter of 2001, Allstate reported consolidated revenues of $7.17 billion compared to $7.45 billion in the third quarter of 2000, with a decrease driven by realized capital losses in 2001 versus gains in 2000.
- Property-Liability written premiums increased to $5.85 billion in the third quarter of 2001 from $5.64 billion in the same period of 2000, with growth in Allstate brand products offset by declines in Ivantage brand products.
- Allstate Financial operating income was $134 million for the third quarter of 2001, comparable to $133 million in the same period of 2000, as increased investment margin offset impacts of market volatility.
Allstate had a very successful year in 2004 despite incurring $2 billion in losses from hurricanes.
- Net income grew to $3.2 billion and operating income increased 16.1% to $3.1 billion. Revenues reached a record $33.9 billion.
- Return on equity was 15% and net income per share increased 18.5% while book value per share rose 9.2%. Allstate executed its strategy of becoming more efficient, driving top-line growth, and expanding into new markets.
- Bank of America reported third quarter 2006 results with total revenue of $18.961 billion, an 11% increase from third quarter 2005, and net income of $5.416 billion, a 20% increase.
- Net interest income was $8.894 billion, a 1% increase, impacted by the sale of Brazilian operations and prior year FAS 133 impact. Noninterest income increased 20% to $10.067 billion.
- Global Consumer & Small Business Banking reported net income of $2.889 billion, a 13% increase, driven by increases in cards, deposits, and debit purchase volume.
Danaher Corporation announced record results for the second quarter and first half of 2005. Net earnings for the second quarter increased 25.5% compared to 2004, and sales increased 19%. For the first six months, net earnings increased 27.5% and sales increased 19%. The company's president stated that growth from existing businesses accounted for 5.5% sales growth in the quarter and that the company saw broad-based strength across its businesses.
Services - GMAC Annual and Fourth Quarter Earnings finance8
GMAC reported full year net income of $2.1 billion in 2006, down from $2.3 billion in 2005. The residential mortgage market experienced a slowdown due to declining home prices and weakness in nonprime credit. Auto finance results were stable despite one-time costs. Insurance reported record earnings through robust underwriting. ResCap results were negatively impacted by $839 million due to homebuilder equity sales and nonprime mortgage market deterioration.
Raytheon reported strong financial results for the fourth quarter and full year 2006. Quarterly sales increased 12% to $5.7 billion due to growth at Integrated Defense Systems, Missile Systems, and Network Centric Systems. Earnings per share from continuing operations increased 27% to $0.65 for the quarter. For the full year, sales increased 7% to $20.3 billion and earnings per share from continuing operations increased 37% to $2.46. Raytheon also provided guidance for 2007, forecasting earnings per share from continuing operations between $2.85 to $3.00 on sales between $21.4 to $21.9 billion.
allstate Quarterly Investor Information 2005 4th Earnings Press Releasefinance7
- Allstate reported Q4 2005 net income of $1.041 billion and operating income of $975 million, despite catastrophe losses of $657 million.
- Premiums grew 2.4% in Q4 driven by increases in auto and homeowners. However, catastrophe losses increased the combined ratio to 89%.
- For 2005, operating income per share was $2.37, down from $4.41 in 2004 due to higher catastrophe losses which increased by $3.12 per share.
- Allstate provided guidance for 2006 operating income per share of $5.60 to $6.00, assuming average catastrophe losses of 6% of premiums.
Bank of America reported first quarter 2007 results with key highlights as follows:
- Earnings of $5.3 billion and diluted EPS of $1.16, up 8% from first quarter 2006.
- Total revenue grew 3% to $18.4 billion compared to first quarter 2006, driven by a 10% increase in noninterest income, though net interest income declined 5%.
- Credit quality remained sound though provision expenses increased 23% compared to first quarter 2006 as credit costs trend toward more normal levels.
- Global Wealth and Investment Management saw client assets reach new highs of $547 billion and added over 500 premier banking sales associates over the past year.
- Bank of America reported second quarter 2006 results, with net income of $5.58 billion excluding merger charges, up 4% from the second quarter of 2005.
- The Global Consumer & Small Business Bank saw strong growth, with net income up 42% to $3.11 billion driven by increases in cards and deposits.
- The Global Corporate & Investment Bank reported net income of $1.72 billion, flat compared to the second quarter of 2005.
- Ameriprise Financial reported a 14% increase in net income for Q3 2007 to $198 million compared to Q3 2006. Adjusted earnings increased 3% to $237 million, excluding separation costs.
- Earnings per share increased 17% to $0.83 for Q3 2007 compared to Q3 2006, while adjusted earnings per share increased 5% to $0.99.
- Revenues grew 11% to $2.2 billion in Q3 2007 driven by strong growth in management fees, distribution fees, and net investment income from hedges.
This document summarizes Bank of America's second quarter 2009 results. It reported net income of $3.2 billion and diluted EPS of $0.33. Revenue was $33.1 billion. Provision for credit losses was $13.4 billion as the allowance was strengthened for continued economic deterioration. Large items impacting earnings included gains from the sale of China Construction Bank shares and a merchant processing business, but losses from derivative adjustments and capital markets disruption charges. The company continued operating in a challenging economic environment.
allstate Quarterly Investor Information Earnings Press Release 2004 1stfinance7
Allstate reported strong financial results for the first quarter of 2004, with a 43% increase in net income and 52% increase in operating income per share compared to the first quarter of 2003. Operating income reached $1 billion for the first quarter, driven by higher premiums earned in Property-Liability and higher realized capital gains. Property-Liability underwriting income increased 109% due to higher premiums, favorable loss trends, and lower catastrophes. Allstate Financial also saw increases in premiums and deposits as well as operating income. As a result of the strong performance, Allstate increased its full-year 2004 operating income per share guidance.
Raytheon reported strong financial results for Q3 2006, with EPS up 41% and bookings of $6.1 billion. The company increased full-year 2006 guidance for EPS, bookings, operating cash flow and ROIC. Segments such as IDS, MS and RAC saw higher sales and improved operating performance compared to Q3 2005. Raytheon also provided initial guidance for 2007 with projected continued growth.
- Ameriprise Financial reported income before discontinued operations of $111 million for Q4 2005, down from $226 million in Q4 2004, primarily due to one-time separation costs.
- Adjusted earnings, which exclude one-time items, decreased 4% to $193 million compared to $202 million in Q4 2004, due to a lower tax provision in 2004. Revenues grew 5% to $1.9 billion.
- Key highlights included a 6% increase in mass affluent clients, higher advisor productivity, improved investment performance, and a 5% increase in owned, managed, and administered assets to over $428 billion.
allstate Quarter Information 2007 4th Earnings Press Releasefinance7
Allstate reported its fourth quarter and full year 2007 results. Net income for Q4 2007 was $760 million, down from $1.2 billion in Q4 2006 due to higher catastrophe losses and a worse underlying combined ratio. For the full year, net income was $4.6 billion, down slightly from 2006. Allstate's consumer-focused strategy helped grow new auto and home insurance products while maintaining pricing discipline. The Property-Liability combined ratio for 2007 was 89.8%, within guidance. Allstate will continue its focus on consumers, risk and return optimization, operational excellence, and capital management in 2008.
The Clorox Company reported financial results for the second quarter and first half of fiscal year 2009. Net sales increased 3% to $1.216 billion in the quarter and 7% to $2.6 billion in the first six months. Earnings per share were $0.62 for the quarter and $1.52 for the six month period. The North America segment grew net sales 3% to $1.007 billion and earnings 6% to $273 million in the quarter. International sales were flat at $209 million in the quarter but earnings declined 24% to $29 million. Total assets were $4.398 billion against $4.801 billion in total liabilities as of December 31, 2008.
- Bank of America reported third quarter 2007 results with net income of $3.7 billion, down 32% from the third quarter of 2006. Earnings per share were $0.82.
- Revenues declined 12% due to a 24% drop in noninterest income driven by losses in Global Corporate and Investment Banking from market turbulence.
- The provision for credit losses increased 74% to $2.03 billion reflecting increased consumer loan loss rates and impacts from the weakened housing market.
Fifth Third Bancorp reported 2007 earnings of $1.1 billion, or $2.03 per diluted share, compared to $1.2 billion, or $2.13 per diluted share in 2006. Fourth quarter 2007 earnings were $38 million, or $0.07 per diluted share, compared to $325 million, or $0.61 per diluted share in the third quarter of 2007. Results were impacted by non-cash charges including lowering the value of a Bank-Owned Life Insurance policy and reserves related to potential Visa litigation settlements. Excluding these items, operating earnings were lower due to deterioration in credit performance and increased loan loss reserves in response to challenging credit conditions expected to continue in the near
Danaher Corporation announced record third quarter results for 2008. Net earnings from continuing operations increased 11% to $372 million compared to $335 million in the third quarter of 2007. Sales increased 17.5% to $3.21 billion. For the first nine months of 2008, net earnings from continuing operations increased 13.2% to $1.01 billion compared to $894 million for the same period in 2007. Sales for the first nine months increased 20.5% to $9.51 billion. The company's president stated they delivered strong performance in the quarter and expect to continue outperforming during challenging economic times due to their portfolio of businesses and operational excellence initiatives.
Allstate reported strong financial results for the second quarter of 2007, with net income up 16.2% and return on equity reaching 25%. Revenues increased 6.5% due to growth in auto insurance sales and investment income. While operating income declined due to increased catastrophe costs, the underlying business performed well. Allstate also continued share repurchases and reinsurance initiatives to enhance returns and manage catastrophe risk.
Danaher Corporation announced record second quarter results for 2003, with net earnings of $125.1 million, a 21% increase over the previous year. Diluted earnings per share were $0.79, up 20% from 2002. Sales increased 13% to $1.299 billion due to recently completed acquisitions. For the first six months of 2003, net earnings were $228.3 million, a 22% rise, and diluted EPS grew 19% to $1.44, despite a sluggish economic environment. The company expects further growth from targeted opportunities and cost reductions.
Bank of America reported record earnings of $16.9 billion for 2005, up 19% from 2004. Revenue grew 9% to $57.6 billion driven by a 19% increase in noninterest income. Earnings were driven by strong consumer growth and commercial lending recovery, despite higher provision costs and fewer securities gains. For the fourth quarter of 2005, earnings were $3.8 billion, down 9% from the previous quarter due to an 8% decline in noninterest income and a 21% rise in provision for credit losses.
allstate Quarterly Investor Information 2001 3rd finance7
- For the third quarter of 2001, Allstate reported consolidated revenues of $7.17 billion compared to $7.45 billion in the third quarter of 2000, with a decrease driven by realized capital losses in 2001 versus gains in 2000.
- Property-Liability written premiums increased to $5.85 billion in the third quarter of 2001 from $5.64 billion in the same period of 2000, with growth in Allstate brand products offset by declines in Ivantage brand products.
- Allstate Financial operating income was $134 million for the third quarter of 2001, comparable to $133 million in the same period of 2000, as increased investment margin offset impacts of market volatility.
Allstate had a very successful year in 2004 despite incurring $2 billion in losses from hurricanes.
- Net income grew to $3.2 billion and operating income increased 16.1% to $3.1 billion. Revenues reached a record $33.9 billion.
- Return on equity was 15% and net income per share increased 18.5% while book value per share rose 9.2%. Allstate executed its strategy of becoming more efficient, driving top-line growth, and expanding into new markets.
Q4 2008 Earnings Press Release and Financial Tablesfinance7
Motorola reported financial results for the fourth quarter of 2008 with $7.1 billion in sales and a GAAP net loss of $3.6 billion or $1.57 per share. For the full year 2008, Motorola had $30.1 billion in sales and a net loss of $4.2 billion or $1.84 per share. Motorola generated $201 million in positive operating cash flow for the fourth quarter. Motorola also announced cost-reduction actions of $1.5 billion for 2009 in response to economic challenges.
Motorola experienced a difficult year in 2001 with declining sales and losses. The company implemented a 5-point plan to rebuild value that included strengthening management, stabilizing finances, reducing costs, pursuing growth through innovation, and reevaluating strategies. While most sectors struggled, PCS improved market share and profitability and BCS bolstered its leadership in cable equipment through acquisitions. The company remains focused on innovation in communications solutions and returning to profitability.
This document is a proxy statement for Motorola's 2006 Annual Meeting of Stockholders. It provides details on the meeting such as date, time, and location. It lists proposals to be voted on including electing directors, adopting a new incentive plan, and a shareholder proposal. It provides background information on governance matters like board committees and director compensation. Executive compensation is also disclosed, including totals, stock options exercised, and new options granted in 2005.
allstate Quarterly Investor Information 2006 4th Earnings Press Releasefinance7
Allstate reported 2006 fourth quarter net income of $1.213 billion and operating income of $1.121 billion. Net income per share was $1.93 and operating income per share was $1.78. Catastrophe losses were $279 million for the quarter, down from $657 million in the prior year. The property-liability combined ratio was 85.7% for the quarter and 83.6% for the year, benefiting from lower catastrophe losses. Allstate will provide an outlook for the 2007 property-liability combined ratio excluding catastrophes of 84-86%.
The competitive market conditions in 2007 were the toughest the CEO had seen. Nevertheless, Allstate delivered the second-highest annual profit ever. However, total shareholder return was negative 17% for the year. Allstate aims to reinvent protection and retirement for consumers by focusing more intently on the consumer and differentiating itself competitively. This will require operating outside normal conventions and innovating in products like Your Choice Auto. Allstate also wants to lead positive change in society by advocating for catastrophe preparedness and continuing education. The future is bright for Allstate as it continues reinventing protection and retirement.
This document is the 2005 annual report summary for The Allstate Corporation. It discusses how in 2005 Allstate incurred $5.7 billion in losses from the three devastating hurricanes but still generated $1.8 billion in net income. It also discusses how Allstate is focusing on managing catastrophic risks, growing profitably, and rewarding shareholders through stock buybacks and dividends. The summary highlights Allstate's key financial results for 2005 and discusses the company's strategies around innovation, value creation, and investing in employees.
This document provides an annual report for Sysco Corporation for the fiscal year ending July 3, 2004. It includes financial highlights showing sales increased 12% to $29.3 billion and net earnings increased 17% to $907 million. It discusses challenges in the year from high product cost inflation of 6.3% and fuel costs. It outlines Sysco's focus on growing profitable customer businesses and improving customer relationships. It describes Sysco's national supply chain initiative including new regional distribution centers to enhance service and reduce costs. In closing, it expresses confidence in addressing economic uncertainty through its employees, products/services, and financial resources.
allstate Quarterly Investor Information 2002 2nd finance7
The Allstate Corporation reported higher net income and operating income in the second quarter of 2002 compared to the same period in 2001. Net income increased to $344 million from $168 million, while operating income rose to $453 million from $230 million. The increases were driven by higher premiums earned, lower catastrophe losses, improved auto and homeowner loss trends, and increased income from Allstate Financial. However, reserves were strengthened for prior claims. For the full year 2002, operating income per share is estimated at $2.70 to $2.90, excluding restructuring charges.
allstate Quarterly Investor Information 2003 1st finance7
Allstate reported strong financial results for the first quarter of 2003, with net income increasing 40% over the prior year to $665 million. Operating income per share increased 39.7% to $0.95, beating analyst estimates. This was driven by improved performance in Property-Liability, with underwriting income up significantly due to higher premiums earned and a lower combined ratio. Results were also boosted by lower realized capital losses. Allstate increased guidance for full-year operating income per share. While Allstate Financial results declined from lower annuity sales and an accounting adjustment, overall performance was solid given economic conditions.
This document provides a summary of Fannie Mae's financial results for the first quarter of 2008. Some key points:
- Fannie Mae reported a net loss of $2.2 billion for the quarter, an improvement from a $3.6 billion loss in the previous quarter. Revenues grew but losses on investments and derivatives also increased.
- Credit losses rose to $3.2 billion due to higher mortgage defaults and loss severities from falling home prices and economic weakness.
- Fannie Mae plans to raise $6 billion in new capital through stock offerings to maintain a strong balance sheet and provide stability in the mortgage market.
- Management is focusing on tightening lending standards and mitigating
The Progressive Corporation announced financial results for December 2005 and the full year 2005. For December, net income was $122.9 million, down 32% from the previous year due to an additional week of results in 2004. For the full year, net income was $1.393.9 billion, down 15% from 2004 which had 53 weeks of activity compared to 52 weeks in 2005. The company also held a conference call in March 2006 to discuss the full year 2005 results and filed its annual report with the SEC.
The Progressive Corporation announced financial results for December 2005 and the full year 2005. For December, net income was $122.9 million, down 32% from the previous year due to an additional week of results in 2004. For the full year, net income was $1.393.9 billion, down 15% from 2004 which had an extra week. The combined ratio for December was 87.2% and for the full year was 88.1%. Progressive also provided supplemental information on premiums written, earned, loss ratios, and policies in force by business segment.
Dover Corporation reported a 16% increase in EPS to $0.88 for Q3 2007 compared to $0.76 for Q3 2006. Revenue increased 15% to $1.84 billion. For the first nine months of 2007, EPS increased 11% to $2.36 while revenue increased 15% to $5.37 billion. The company achieved organic growth of 3.3% and acquisition growth of 9.6% in Q3. Looking ahead, Dover expects continued solid business in Q4 but with moderating growth and restructuring charges of $0.02-0.03 per share.
This document summarizes Raytheon's financial results for the fourth quarter and full year of 2008. Key points include: Raytheon reported solid financial results for Q4 and full year 2008, with record backlog of $38.9 billion; Q4 sales were $6.1 billion and adjusted EPS was $1.13; Full year sales grew 9% to $23.2 billion and adjusted EPS grew 23% to $4.06; Raytheon reaffirmed its financial guidance for 2009 and expects continued growth.
- Ameriprise Financial reported net income of $171 million for Q4 2006, up 54% from Q4 2005. Adjusted earnings excluding one-time costs were $251 million, up 30%.
- Revenues grew 16% to $2.2 billion driven by higher fees from increased assets under management and strong sales. Expenses rose 13% primarily due to increased compensation.
- For the full year, income grew 13% to $631 million and adjusted earnings grew 25% to $866 million. The company exceeded its cost savings target for the year.
Danaher Corporation announced record first quarter results for 2006, with net earnings of $216 million, a 15% increase from 2005. Total sales increased 17.5% to $2.14 billion due to 12.5% growth from acquisitions and 7.5% core revenue growth. Operating cash flow was also up 8% from the previous record set in 2005. The company's CEO stated that the broad-based strength across businesses reinforces confidence in delivering positive results for the rest of 2006.
u.s.bancorp4Q 2003 Earnings Release and Supplemental Analyst Schedules finance13
U.S. Bancorp reported a 19.2% increase in net income for the fourth quarter of 2003 compared to the same period in 2002. Earnings per share increased 16.3% to $0.50. Net interest income increased 2.9% to $1.816.7 million due to growth in average earning assets. Provision for credit losses decreased 18.1% and noninterest expense decreased 9.7% contributing to the rise in net income. The company also completed the spin-off of Piper Jaffray Companies.
Danaher Corporation announced its second quarter 2007 results, with net earnings of $311 million compared to $314 million in the second quarter of 2006. Sales increased 13.5% to $2.67 billion. For the first six months of 2007, net earnings were $566 million on sales of $5.23 billion, increases of 5.5% and 16.5% respectively over the same period in 2006. The company stated that core revenue growth was 4.5% in the quarter despite difficult comparisons, and that performance through the first half gives them confidence in achieving positive results for the full year.
Dover Corporation reported record results for the first quarter of 2007, with earnings per share increasing 5% over the previous year. Revenue was $1.78 billion, an increase of 18% year-over-year. The company saw strong revenue gains in four of its six segments. Looking forward, Dover expects continued strength in several of its industrial businesses and anticipates full-year revenue and earnings will set new records.
Danaher Corporation announced record results for the second quarter of 2008, with net earnings from continuing operations of $363 million, an 18% increase over the second quarter of 2007. Sales increased 25% to $3.28 billion. The company also saw a 22% increase in adjusted net earnings from continuing operations, which excludes certain charges related to an acquisition. For the first six months of 2008, net earnings from continuing operations were $640 million, up 14.5% compared to the same period in 2007. The company's CEO stated that despite economic conditions, the company's businesses are well positioned for the rest of 2008.
allstate Quarterly Investor Information 2005 1st Earnings Press Release finance7
Allstate reported a 22% increase in first quarter net income and a 16% increase in operating income per share compared to the first quarter of 2004. Property-liability underwriting income increased 13.4% due to higher premiums and continued declines in auto and homeowner loss frequencies. Allstate is confirming its 2005 operating income per share guidance range of $5.40 to $5.80 despite $164 million in first quarter catastrophe losses, up from $102 million in the first quarter of 2004. Allstate Financial also had a solid quarter with a 15.2% increase in premiums and deposits and 12.9% increase in operating income.
allstate Quarterly Investor Information 2004 4th Earnings Press Release finance7
Allstate reported a 52% increase in fourth quarter net income per share and a 34% increase in fourth quarter operating income per share compared to the previous year. For the full year, Allstate earned record levels of operating income per share and net income per share. Allstate also announced guidance for 2005 operating income per share to be in the range of $5.40 to $5.80, representing growth of 22-32% over 2004 levels.
This annual report summarizes FMC Technologies' financial and operational performance in 2002, their first full year as an independent company.
Key highlights include:
- Earnings before accounting changes increased to $0.96 per share, and revenues grew to $2.07 billion.
- Order backlog increased to $1.15 billion, up from $960.7 million the prior year.
- Energy Systems sales and earnings improved due to strong demand for subsea systems, partially offsetting declines in other product lines.
- The company paid down $97 million in debt since 2001 and eliminated $33 million in lease obligations.
- FMC Technologies' stock price increased over 24% from the time of their
Danaher Corporation reported record results for the fourth quarter and full year 2003. Net earnings for Q4 2003 were $169.9 million, or $1.06 per share, compared to $161.7 million, or $1.03 per share for Q4 2002. For the full year, net earnings were $536.8 million or $3.37 per share compared to $290.4 million or $1.88 per share for 2002. Sales increased 17% in Q4 2003 to $1.49 billion and grew 16% for the full year to $5.29 billion. The company experienced strong growth in both its process/environmental controls and tools/components segments.
Dover Corporation reported record results for the second quarter of 2007, with earnings from continuing operations of $175.1 million (up 10% from 2006), revenue of $1.859 billion (up 12% from 2006), and record backlog of $1.6 billion. For the six months ended June 30, 2007, earnings from continuing operations were $314 million (up 8% from 2006) and revenue was $3.639 billion (up 15% from 2006). The company expects a record third quarter with moderate organic growth and contributions from acquisitions.
Danaher Corporation announced record financial results for the third quarter and first nine months of 2006. Net earnings increased 17% for the quarter and 24% year-to-date compared to the same periods in 2005. Sales also increased substantially both for the quarter (24% higher) and year-to-date (21% higher). The CEO stated that core revenue growth remained strong and they expect to continue delivering positive results for the remainder of the year based on the strength of their businesses.
Danaher Corporation announced its second quarter 2002 results, with net earnings of $103.7 million, a 10% increase over the second quarter of 2001. Earnings per share increased 5% to $0.66. Sales for the quarter increased 20% to $1.146 billion due primarily to recent acquisitions. For the first six months of 2002, net earnings were $12.7 million after a one-time $173.8 million goodwill impairment charge, but were up 5% excluding this charge at $186.4 million, with sales up 10% to $2.15 billion. The CEO stated they were pleased with the results and optimistic about continued improvement for the rest of the year.
Similar to allstate Quarterly Investor Information 2002 4th (20)
Return on total capital for the trailing 12 months ended June 28, 2008 was 20.8%. Net earnings for the 4 fiscal quarters spanning September 29, 2007 to June 28, 2008 totaled $1,104,607. The average total capital over the last 5 quarters, consisting of long-term debt, short-term debt, and equity, was $5,303,913. Return on capital was calculated by taking net earnings for the 12 month period and dividing by the average total capital.
This document is Sysco Corporation's 2000 annual report. It summarizes that fiscal 2000 was Sysco's 30th anniversary as a public company and marked record sales of $19.3 billion, up 11% from the previous fiscal year. Key drivers of growth were increased sales to customers served by Sysco marketing associates and continued growth of Sysco Brand sales. The report discusses Sysco's strategy of pursuing both acquisitions and internal expansion to continue driving future success through offering customers a breadth of products and superior service.
1) SYSCO reported strong sales and earnings growth in fiscal year 2001, with sales topping $20 billion for the first time.
2) Net earnings increased over 30% compared to the previous year, and return on shareholders' equity reached 31%.
3) Growth was driven by acquisitions, internal expansion, and a focus on customer relationships through initiatives like C.A.R.E.S.
SYSCO is a food distribution company that supplies over 415,000 customers like restaurants, hospitals, and schools. In fiscal year 2002, SYSCO reported $23.35 billion in sales, a 7% increase from the previous year. Net earnings increased 14% to $679.78 million compared to fiscal year 2001. SYSCO has over 46,800 employees and operates from 142 locations across North America, helping their customers succeed by providing food and related products and services.
This annual report summarizes Sysco Corporation's financial performance for fiscal year 2003. Key highlights include:
- Sales increased 12% to $26.14 billion and net earnings increased 14% to $778.28 million.
- Diluted earnings per share increased 17% to $1.18.
- Return on average shareholders' equity was 36%.
- The company distributed products from 145 locations across North America to over 420,000 customer locations.
The passage discusses the importance of summarization in an age of information overload. It notes that with the massive amounts of data available online, being able to quickly understand the key points of lengthy documents, articles, or reports is crucial. The ability to produce clear, concise summaries helps people filter through large amounts of information and identify what is most important or relevant to them.
- SYSCO achieved record sales of $37.5 billion and record net earnings of $1.1 billion in fiscal year 2008 despite challenging economic conditions.
- The company's focus on supply chain efficiency and helping customers succeed through business reviews allowed it to contain costs while growing market share.
- SYSCO continues to invest in its business, people, facilities, fleet and technology to support long-term growth while exploring alternative energy sources.
This document summarizes reconciling items for 2001 by quarter and fiscal year. It reports reorganization costs of $19.1 million in Q2 2001, $11.7 million in Q3 2001, and $10.6 million in Q4 2001 for workforce reductions and facility consolidations worldwide. Special items include a $19.4 million write-off in Q3 2001 and $3.5 million impairment charge in Q4 2001. The total net reconciling items after tax was $42.1 million for fiscal year 2001.
This document shows the reconciliation between GAAP and non-GAAP operating income for different regions and worldwide for 2001. For each quarter and the full year, it provides the operating income under GAAP and non-GAAP measurements, as well as the reconciling items between the two. On a non-GAAP basis, operating income margins ranged from -1.25% to 1.23% by region for the full year.
This document provides a reconciliation of GAAP to non-GAAP financial metrics for 2001. For each quarter and full year, it shows gross sales, gross profit, operating expenses, operating income, net income, and diluted EPS under GAAP and non-GAAP after adjusting for reconciling items. The reconciling items reduced operating expenses and increased operating income, net income, and diluted EPS for the non-GAAP results compared to GAAP.
This document summarizes reconciling items for 2002 by quarter and fiscal year total. It includes reorganization costs, other major program costs, gains/losses on securities sales, and tax effects. Total net reorganization and other major program costs for the fiscal year were $116.6 million. A $280.9 million cumulative effect of a new accounting standard adoption was also recorded. The total net impact of reconciling items for the fiscal year was $350.2 million.
The document shows the reconciliation between GAAP and non-GAAP operating income for North America, Europe, Asia-Pacific, Latin America, and worldwide total for Q1 2002 through FY 2002. It provides the operating income under GAAP and non-GAAP measurements, as well as the reconciling items and non-GAAP operating income as a percentage of revenue for each region and time period.
This document provides a reconciliation of net income and earnings per share (EPS) between Generally Accepted Accounting Principles (GAAP) and non-GAAP measures for 4 quarters (Q1 2002 - Q4 2002) and the full fiscal year 2002 for an unnamed company. It shows that reconciling items reduced operating expenses and increased operating income, net income, and EPS under the non-GAAP measures compared to the GAAP measures.
This document summarizes reconciling items for 2003, including reorganization costs and other major program costs by quarter. Total reorganization costs for the year were $21.6 million. Other costs included in selling, general and administrative expenses were $23.3 million and costs of sales were $0.5 million. Pre-tax items totaled $45.4 million for the year. A favorable tax resolution of $70.5 million occurred in Q3 03. The total net effect was a $39.6 million benefit.
This document shows the operating income for different regions and worldwide both according to GAAP (Generally Accepted Accounting Principles) standards and on a non-GAAP basis for Q1 2003, Q2 2003, Q3 2003, Q4 2003 and FY 2003. It provides the figures in US dollars and also shows the operating income as a percentage of revenue. The non-GAAP operating income is higher due to reconciling items which are additional costs excluded from the non-GAAP calculation.
This document presents a bridge between GAAP and non-GAAP financial results for a company for 2003. It shows GAAP and non-GAAP results for net income, earnings per share, gross profit, operating expenses, operating income, and sales on a quarterly and full year basis. Reconciling items between GAAP and non-GAAP results include adjustments to operating expenses that increased non-GAAP operating income and net income compared to GAAP.
This document summarizes reconciling items for 2004 by quarter and fiscal year. It includes reorganization costs, other major program costs, foreign exchange gains and losses, and tax effects. Reorganization costs were credits in Q3 and Q4 2004 due to lower than expected facility consolidation costs. Foreign exchange gains stemmed from a currency contract for an acquisition. A favorable tax resolution in Q3 and Q4 2004 reversed previously accrued federal and state income taxes. The total net tax effect for the fiscal year was a credit of $58.8 million.
This document provides a reconciliation of GAAP to non-GAAP financial metrics for a company's net income and earnings per share for 2004. It shows the company's gross sales, gross profit, operating expenses, operating income, net income, and diluted EPS for each quarter of 2004 and the full year under both GAAP and non-GAAP measures, with reconciling items that adjust between the two methods.
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
Navigating Your Financial Future: Comprehensive Planning with Mike Baumannmikebaumannfinancial
Learn how financial planner Mike Baumann helps individuals and families articulate their financial aspirations and develop tailored plans. This presentation delves into budgeting, investment strategies, retirement planning, tax optimization, and the importance of ongoing plan adjustments.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
Budgeting as a Control Tool in Government Accounting in Nigeria
Being a Paper Presented at the Nigerian Maritime Administration and Safety Agency (NIMASA) Budget Office Staff at Sojourner Hotel, GRA, Ikeja Lagos on Saturday 8th June, 2024.
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...Alexander Belyaev
Calculation of compliance cost in the fishing industry of Russia after extended SCM model (Veterinary and sanitary control of aquatic biological resources (ABR) - Preparation of documents, passing expertise)
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...
allstate Quarterly Investor Information 2002 4th
1. NEWS
FOR IMMEDIATE RELEASE
Contact: Michael Trevino
Media Relations
(847) 402-5600
Robert Block, Larry Moews, Phil Dorn
Investor Relations
(847) 402-2800
Allstate Reports 2002 Fourth Quarter Results
NORTHBROOK, Ill., Feb. 5, 2003 -- The Allstate Corporation (NYSE: ALL) today
reported for the fourth quarter of 2002:
• Net income of $447 million ($.63 per diluted share); up 69% from Q4 2001
• Operating income of $618 million ($0.87 per diluted share); up 100% from Q4
2001
• Operating income, excluding restructuring charges, of $633 million ($0.89 per
diluted share); up 67% from Q4 2001.
Operating income is defined as net income before the after-tax effects of realized capital gains and losses,
gain (loss) on disposition of operations, dividends on preferred securities of subsidiary trust and the
cumulative effect of a change in accounting principle. A reconciliation of operating income to net income is
provided in the following schedules.
“Our results this quarter cap a year in which Allstate demonstrated its ability to focus on
superior execution and deliver value. We are pleased with our very good performance
for this quarter and for the entire year. The actions we took to improve our underwriting
performance resulted in an improvement in the loss ratios despite increasing prior year
reserves. Our constant focus on expenses also resulted in a lower expense ratio for the
year. Allstate Financial had increased operating income for the year despite a very
difficult economic environment. We will build on this success as we drive toward
consistent earnings growth year after year,” said Chairman, President and CEO Edward
M. Liddy.
For the year 2002, Allstate reported:
• Net income of $1.13 billion ($1.60 per diluted share) compared to 2001 net
income of $1.16 billion ($1.60 per diluted share).
• Operating income of $2.08 billion ($2.92 per diluted share) in 2002 compared to
$1.49 billion ($2.06 per diluted share) in 2001.
• Operating income excluding restructuring charges of $2.15 billion ($3.03 per
diluted share) compared to $1.58 billion ($2.18 per diluted share) in 2001.
2. NEWS
page 2
“While we took some rate increases in the fourth quarter, the need for rate actions
abated somewhat in the second half of 2002 as rates taken earlier in the year proved to
be adequate. Our philosophy on rates is simple: in all locations and for all products, we
will seek or take the rates that are indicated based on our loss trend analysis to achieve
our targeted return on investment.
“Auto frequencies continued to trend favorably in the quarter while severities increased
modestly, similar to experience during the year. Catastrophe losses experienced in the
fourth quarter were in line with our expectations, but substantially higher than the fourth
quarter of 2001 and the third quarter of 2002.
“The Texas water and mold related loss trends that have been so problematic in
previous quarters continue to improve each quarter as policies are renewed using the
new policy form that limits the remediation of mold resulting from a covered water loss.
“Allstate Financial's statutory premiums and deposits of $2.76 billion in the fourth quarter
were very strong, 19.5% over the fourth quarter for prior year primarily driven by sales in
our innovative Allstate® Treasury-Linked Annuity product, with renewal interest rates
tied to rate changes on the 5-year Treasury note.
“We continue to make good progress on our strategy to become broader in financial
services as our Allstate agencies and exclusive financial specialists sold more than
$1.61 billion of new issued premiums and deposits in 2002 — more than the prior three
calendar years combined.
“The year was not without challenges. The investment world experienced issues of
credit quality, declining interest rates and a third consecutive year of declining equity
markets. Market-specific issues such as medical inflation and mold, as well as adverse
developments in asbestos, environmental, and other mass torts, caused us to
strengthen reserves. But we aggressively addressed these challenges, better
positioning us to pursue our profitable growth goals. We close 2002 with a very strong
balance sheet.
“Looking to 2003, we anticipate that operating income per diluted share will be in the
range of $3.20 to $3.40 (excluding restructuring charges and assuming the level of
average expected catastrophe losses used in pricing).
“With our pricing philosophy in place ensuring that rates in most locations for the Allstate
brand remain at our approximate return targets, our emphasis in 2003 will be on growing
units profitably. Our expectation is that our improved profit position in standard auto and
homeowners combined with more modest rate increases will allow us to pursue a
broader marketing approach in most of the U.S. and will result in sequential unit growth
in standard auto and homeowners in the second half of 2003. Due to concerns about
3. NEWS
page 3
sustained profitability in certain large markets, we expect a continued decline in non-
standard auto units.
“For Ivantage, we expect continual improvement in the combined ratio over the course of
2003. Given a more stable investment climate, Allstate Financial operating earnings are
expected to continue to grow moderately.”
4. NEWS
page 4
Summary of results for the quarter and twelve months ended December 31,
2002:
Consolidated Highlights
Quarter Ended Twelve Months Ended
December 31 December 31
($ in millions, except per share amounts) Est. Est.
2002 2001 Change 2002 2001 Change
$ $ % $ $ %
7,587 7,358 3.1 29,579 28,865 2.5
Consolidated Revenues
Operating Income Before Restructuring
633 379 67.0 2,152 1,576 36.5
Charges After-tax
Operating Income Per Share (Diluted)
0.89 0.53 67.9 3.03 2.18 39.0
Before Restructuring Charges After-tax
15 70 (78.6) 77 84 (8.3)
Restructuring Charges After-tax
618 309 100.0 2,075 1,492 39.1
Operating Income
0.87 0.43 102.3 2.92 2.06 41.7
Operating Income Per Share (Diluted)
(165) (29) -- (602) (240) 150.8
Realized Capital (Losses) Gains After-tax
Gain (Loss) on Disposition of Operations
(3) -- -- 2 (40) (105.0)
After-tax
Dividends on Preferred Securities of
(3) (16) (81.3) (10) (45) (77.8)
Subsidiary Trust(s) After-tax
Cumulative Effect of a Change in
-- -- -- (331) (9) --
Accounting Principle After-tax
447 264 69.3 1,134 1,158 (2.1)
Net Income
0.63 0.37 70.3 1.60 1.60 --
Net Income per share (Diluted)
Weighted Average Shares Outstanding
705.7 714.7 (1.3) 709.9 723.3 (1.9)
(Diluted)
24.75 24.08 2.8 24.75 24.08 2.8
Book value per share (Diluted)
5. NEWS
page 5
The increase in fourth quarter 2002 consolidated revenues when compared to the prior
year fourth quarter was due to:
• increased Property-Liability premiums earned
• increased Allstate Financial life and annuity premiums and contract charges
These factors were partly offset by:
• higher realized capital losses
The consolidated operating income increase in the fourth quarter of 2002 when
compared to the prior year quarter was due to:
• increased Property-Liability premiums earned
• improved Property-Liability loss frequencies
• positive impact of an adjustment for prior year tax liabilities
• increased Allstate Financial investment margin
These factors were partly offset by:
• higher severity of Property-Liability claims
• higher Property-Liability catastrophe losses
• reserve strengthening for Discontinued Lines and Coverages
• lower Allstate Financial mortality margin
The consolidated operating income increase for the twelve months of 2002 when
compared to the prior year was due to:
• increased Property-Liability premiums earned
• improved Property-Liability loss frequencies
• lower catastrophe losses
• positive impact of an adjustment for prior year tax liabilities
• increased Allstate Financial investment margin
These factors were partly offset by:
• higher severity of Property-Liability claims
• strengthening for prior year reserves
• accelerated amortization of deferred acquisition costs (DAC unlocking)
Restructuring expenses incurred during the fourth quarter of 2002 totaled $24 million, or
$15 million after-tax and $.02 per diluted share after-tax. Restructuring expenses for the
2002 year totaled $119 million, or $77 million after-tax and $0.11 per diluted share after-
tax. These expenses related to the previously announced realignment of the company’s
claim offices, Customer Information Centers and other back-office operations and a non-
6. NEWS
page 6
cash charge resulting from pension benefit payments made to agents in connection with
the re-organization of employee agents to a single exclusive agency independent
contractor program announced in 1999.
During the fourth quarter of 2002, Allstate purchased 2.0 million shares of its stock for
$73 million, or an average cost per share of $37.10. Purchases during the fourth quarter
of 2002 completed the $500 million repurchase program that commenced in September
of 2001. Allstate announced on February 4, 2003 that a new repurchase program had
been approved for $500 million, which is expected to be completed by December 31,
2005.
7. NEWS
page 7
The components of pre-tax realized capital gains (losses) were:
Est. Quarter Ended Quarter Ended
December 31, 2002 December 31, 2001
($ in millions) Property- Allstate Corporate Property- Allstate Corporate
Liability Financial and Other Total Liability Financial and Other Total
Valuation of
derivative
instruments $ 8 $ 8 $ -- $ 16 $ 12 $ 20 $ -- $
32
Sales (52) (11) 12 (51) 23 8 1 32
Investment
write-downs (72) (146) (1) (219) (40) (56) --
(96)
Realized
Capital
Gains $ (116) $(149) $ 11 $(254) $ (5) $ (28) $1 $ (32)
(Losses)
Est. Twelve Months Ended Twelve Months Ended
December 31, 2002 December 31, 2001
($ in millions) Property- Allstate Corporate Property- Allstate Corporate
Liability Financial and Other Total Liability Financial and Other Total
Valuation of
derivative
instruments $ (24) $ (24) $ -- $ (48) $ (59) $ (64) $ -- $(123)
Sales (324) (102) 12 (414) 51 (11) 2 42
Investment
write-downs (148) (311) (8) (467) (125) (152) -- (277)
Realized
Capital Gains
(Losses) $ (496) $(437) $4 $(929) $ (133) $ (227) $2 $(358)
An interest rate futures program is used to manage the Property-Liability interest rate
risk exposure relative to its duration target. During 2002, a short futures position was in
place that reduced the Property-Liability portfolio duration by as much as 0.3, and
produced a pre-tax realized capital loss of $32 million in the fourth quarter and $195
million for the year. These pre-tax realized capital losses are included in the preceding
table as “Sales.”
8. NEWS
page 8
As a component of the overall interest rate risk management, pre-tax realized losses on
this program are most appropriately considered in conjunction with the pre-tax
unrealized gains on the Property-Liability fixed income portfolio. These gains totaled
$1.76 billion at December 31, 2002, a decline of $250 million since September 30, 2002
and an increase of $913 million since December 31, 2001. Viewed in the aggregate,
these results best reflect the full impact of the decline in rates on portfolio values and the
overall balance sheet. The interest rate futures program performed as expected given
the decline in interest rates during 2002 and contributed to the management of interest
rate exposure.
During the fourth quarter of 2002, U.S. credit market conditions continued to deteriorate
causing both weakened corporate credit and reduced market liquidity. Allstate had pre-
tax realized capital losses related to investment write-downs of $219 million in the fourth
quarter and $467 million for the year, or approximately 0.5% of the average total
investments during the year. During the fourth quarter, Allstate had write-downs on
approximately 137 issuers, or an estimated 1.8% of the total number of issuers in the
entire portfolio, of which approximately half were equity securities and half were fixed
income securities. One write-down totaled $43 million, but no other write-down of a
specific issuer was greater than $15 million. Approximately half of the write-downs in
the fourth quarter were related to the utility, transportation and oil and gas industries,
with the balance spread across multiple sectors.
9. NEWS
page 9
Property-Liability Business
Property-Liability Highlights
Quarter Ended Twelve Months Ended
December 31 December 31
($ in millions, except ratios) Est. Est.
2002 2001 Change 2002 2001 Change
$ $ % $ $ %
Property-Liability Premiums Written 5,854 5,595 4.6 23,917 22,609 5.8
Property-Liability Revenues 6,234 6,050 3.0 24,521 23,809 3.0
Operating Income before Restructuring
Charges 505 252 100.4 1,705 1,131 50.8
Restructuring Charges After-tax 15 69 (78.3) 76 79 (3.8)
Operating Income 490 183 167.8 1,629 1,052 54.8
Realized Capital (Losses) Gains After-tax (74) (4) -- (314) (83) --
Gain (Loss) on Disposition of Operations
After-tax 1 -- -- 6 (40) (115.0)
Cumulative Effect of a Change in
Accounting Principle After-tax -- -- -- (48) (3) --
Net Income 417 179 133.0 1,273 926 37.5
Catastrophe Losses 237 133 78.2 731 894 (18.2)
Combined Ratio before impacts of
catastrophes and restructuring charges 93.4 100.2 (6.8) pts 95.3 98.4 (3.1) pts
Impact of catastrophes 4.0 2.4 1.6 pts 3.1 4.0 (0.9) pts
Impact of restructuring charges 0.4 1.9 (1.5) pts 0.5 0.5 -- pts
Combined Ratio 97.8 104.5 (6.7) pts 98.9 102.9 (4.0) pts
10. NEWS
page 10
Property-Liability premium written growth in the fourth quarter of 2002 as compared to
the same quarter in the prior year included:
A 4.4% increase in Allstate brand premiums written, comprised of:
• 3.6% increase in standard auto
• 12.4% decrease in non-standard auto
• 17.2% increase in homeowners
A 7.7 % increase in Ivantage premiums written, comprised of:
• 1.5% increase in Encompass standard auto
• 183.3% increase in Deerbrook non-standard auto to $34 million
• 7.4% increase in Encompass homeowners
This growth was impacted by:
• increased premium rates during 2002
• declines in the number of policies in force, principally non-standard auto
• a processing slow-down following September 11, 2001 increasing written
premium in the fourth quarter of 2001 by an estimated 0.4%
The following net rate changes have been approved for Property-Liability:
Quarter Ended Twelve Months
Ended
December 31, 2002 December 31, 2002
Weighted Weighted
# of States Average # of States Average
Rate Rate
Change Change
(%) (%)
Allstate brand
Standard Auto 12 4.4 39 6.4
Non-standard Auto 8 14.0 38 11.1
Homeowners 8 9.9 44 17.1
Ivantage
Standard Auto (Encompass) 5 4.8 34 6.4
Non-standard Auto 10 7.0 22 9.1
(Deerbrook)
Homeowners (Encompass) 3 14.7 35 13.9
11. NEWS
page 11
Factors contributing to the increase in Property-Liability operating income in the fourth
quarter of 2002 when compared to the same quarter in the prior year were:
• increased premiums earned
• improved loss frequencies
• a lower level of strengthening of Allstate Protection prior year reserves
• positive impact of an adjustment for prior year tax liabilities totaling $75 million
These factors were offset by:
• increased severity of claims
• increased catastrophe losses
• reserve strengthening for Discontinued Lines and Coverages
Factors contributing to the increase in Property-Liability operating income in the twelve
months of 2002 when compared to the prior year were:
• increased premiums earned
• improved loss frequencies
• lower catastrophe losses
• positive impact of an adjustment for prior year tax liabilities totaling $93 million
These factors were offset by:
• increased severity of claims
• increased prior year reserves
• lower investment income
Factors contributing to decreased Property-Liability claims and claims expenses in the
fourth quarter of 2002 when compared to the prior year quarter include:
• improved auto and homeowners loss frequencies
• lower level of strengthening of Allstate Protection prior year reserves
Partly offset by:
• higher severity of current year claims
• increased catastrophe losses
• reserve strengthening for Discontinued Lines and Coverages
12. NEWS
page 12
Estimated Strengthening of Prior Year Reserves
(pre-tax $ in millions, except ratios) Quarter Ended Twelve Months Ended
December 31 December 31
Loss Ratio Loss Ratio
Variance Variance
2002 to 2001 2002 to 2001
Auto $ 35 0.6 (2.2) pts $ 44 0.2 0.6 pts
Homeowners 28 0.5 0.3 pts 367 1.5 (0.3) pts
Other 8 0.1 (0.7) pts 43 0.2 0.2 pts
Total Allstate Protection $ 71 1.2 (2.6) pts $ 454 1.9 0.5 pts
Discontinued Lines and Coverages 60 1.0 0.8 pts 231 1.0 0.9 pts
Total Property-Liability $ 131 2.2 (1.8) pts $ 685 2.9 1.4 pts
Allstate brand $ 34 0.6 (2.5) pts $386 1.6 0.6 pts
Ivantage 37 0.6 (0.2) pts 68 0.3 (0.1) pts
Total Allstate Protection $71 1.2 (2.7) pts $ 454 1.9 0.5 pts
Reserves for prior year homeowners claims were increased in the fourth quarter
primarily due to $20 million of additional reserves for the settlement of losses remaining
from the 1994 Northridge earthquake. Increases in the year 2002 were primarily due to
the emergence of greater than anticipated late reported claims and severity
development, including losses on mold claims in the state of Texas.
Incurred losses related to mold claims in Texas, have been:
($ in millions) 2002 2001
First Quarter $ 119 $7
Second Quarter 103 25
Third Quarter 90 74
Fourth Quarter 14 78
Year to Date $ 326 $ 184
Reserve for prior year Discontinued Lines and Coverages claims increased in the fourth
quarter primarily due to adverse development of losses related to other mass torts, while
increases in the year 2002 primarily were due to development of asbestos losses.
13. NEWS
page 13
Allstate’s net asbestos reserves by type of exposure are shown in the following
table:
December 31, 2002 December 31, 2001
($ in millions) Number of Asbestos % of Asbestos % of
Active Reserves Asbestos Reserves Asbestos
Policyholders Reserves Reserves
Direct policyholders
-Primary 40 $ 8 1% $ 4 1%
-Excess 240 95 15 83 12
Total direct policyholders 280 103 16% 87 13%
Assumed reinsurance 173 27 168 25
Incurred but not reported
claims (“IBNR”) 359 57 420 62
Total 280 $ 635 100% $ 675 100%
Reserve additions $ 121 $ 94
Survival ratio
-Current year 4.0 11.1
-Three year average 5.1 7.6
Survival ratio excluding
commutations, policy buy-
backs and settlement
agreements
-Current year 10.3 14.7
-Three year average 12.5 15.4
Allstate conducts an annual review in the third quarter of each year to evaluate and
establish asbestos reserves. Using established industry and actuarial best practices, this
detailed and comprehensive ground up methodology determines reserves based on
assessments of the characteristics of exposure (e.g. claim activity, potential liability,
jurisdiction, products versus non-products exposure) presented by individual
policyholders, which assumes no change in the legal, legislative or economic
environment. Approximately 14% of direct policyholders have primary policies and 86%
have excess coverage that involves coverage for specific layers of protection above
retained exposures and other insurance plans. During the last three years, 96 primary
and excess policyholders reported new claims, and 100 policyholders were closed,
reducing the number of active policyholders by 4. Reserves for assumed reinsurance
are established for generally small participations in other insurer’s reinsurance
programs. IBNR reserves are estimated to provide for upward development of known
14. NEWS
page 14
claims, and reporting of additional claims due to current and new policyholders and
exposures. Reserves recoverable from reinsurers are estimated to be approximately
30% of gross estimated losses, after reduction for known reinsurer insolvencies.
The survival ratios shown in the table above are defined as the ratios of reserves to
asbestos payments for the specified periods. Survival ratios are a commonly used, but
imprecise measure of reserve adequacy. The adjusted survival ratios shown in the table
above exclude the effects of previously executed commutations, policy buy-backs and
settlement agreements and, as such, are a more representative prospective measure of
current reserve adequacy. Allstate’s adjusted survival ratios, which exceed 12 years, are
indicative of a strong reserve position. A one-point increase in the three-year average
adjusted survival ratio at December 31, 2002 would require an after-tax addition to
reserves of approximately $31 million.
15. NEWS
page 15
Allstate Financial Business
Allstate Financial Highlights
Quarter Ended Twelve Months Ended
December 31 December 31
Est. Est.
2002 2001 Change 2002 2001 Change
($ in millions) $ $ % $ $ %
Statutory Premiums and Deposits* 2,761 2,311 19.5 11,834 10,605 11.6
Allstate Financial GAAP Revenues 1,325 1,287 3.0 4,982 4,971 0.2
Operating Income before
Restructuring Charges 158 148 6.8 557 532 4.7
Restructuring Charges After-tax -- 1 (100.0) 1 5 (80.0)
Operating Income 158 147 7.5 556 527 5.5
Realized Capital (Losses) Gains
After-tax (99) (25) -- (291) (158) 84.2
Gain (Loss) on Disposition of
Operations After-tax (4) -- -- (4) -- --
Cumulative Effect of a Change in
Accounting Principle After-tax -- -- -- (283) (6) --
Net Income 55 122 (54.9) (22) 363 (106.1)
Investments including Separate
Accounts 66,389 59,653 11.3 66,389 59,653 11.3
*Statutory premiums and deposits is an operating measure used by Allstate
management to analyze sales trends. Statutory premiums and deposits includes
premiums on insurance policies and premiums and deposits on annuities determined in
conformity with statutory accounting practices prescribed or permitted by the insurance
regulatory authorities of the states in which the Company’s insurance subsidiaries are
domiciled, and all other funds received from customers on deposit-type products which
are accounted for as liabilities, including the net new deposits of Allstate Bank.
16. NEWS
page 16
Factors contributing to the increase in Allstate Financial statutory premiums and deposits
during the fourth quarter of 2002 as compared to the same quarter in the prior year
included:
• an increase in the retail sales of fixed annuities, particularly the Allstate®
Treasury-Linked Annuity
• an increase in sales of structured and immediate annuities
• growth in deposits of Allstate Bank
This increase was partly offset by:
• a decrease in institutional funding agreement sales, as a result of unfavorable
market conditions
• a decrease in retail sales of variable annuities
Factors contributing to the increase in Allstate Financial operating income in the fourth
quarter of 2002 when compared to the same quarter in the prior year were:
• increased life premiums
• increased investment margin
• positive impact of an adjustment for prior year tax liabilities totaling $26 million
These factors were partially offset by:
• higher operating costs and expenses driven by technology investments and
marketing costs
• decreased mortality margin
Factors contributing to the increase in Allstate Financial operating income in the twelve
months of 2002 when compared to the prior year were:
• increased investment margin
• increased premiums and contract charges
• positive impact of an adjustment for prior year tax liabilities totaling $38 million
These factors were offset by:
• higher operating costs and expenses
• accelerated amortization of deferred policy acquisition costs (DAC unlocking)
totaling $42 million after-tax
Allstate Financial new issued premiums and deposits sold through Allstate agencies
totaled $1.61 billion for the 2002 year, compared to $702 million in 2001. New issued
premium and deposits is an operating measure used to analyze sales trends and
17. NEWS
page 17
includes annual premium on new insurance policies, initial premiums and deposits in
annuities, deposits in the Allstate Bank, and deposits in non-proprietary mutual funds.
Allstate Financial’s variable annuity guaranteed minimum death benefits (“GMDB”) value
in excess of the account value, payable only if all contract holders were to have died as
of December 31, 2002, is estimated to be $3.82 billion, net of reinsurance and other
contractual arrangements, a decline from the September 30, 2002 level of $4.23 billion.
Net cash payments for GMDBs were $17 million and $58 million for the fourth quarter of
2002 and the year, respectively, net of reinsurance, hedging gains and losses, and other
contractual arrangements.
The weighted average interest crediting rate on retail fixed annuity and interest sensitive
life products in force, excluding market value adjusted annuities, is approximately 140
basis points more than the underlying long term guaranteed rates on these products.
This press release contains forward-looking statements about the company’s operating
income for 2003, Allstate Financial operating income, rate changes in our Property-
Liability business and reserves. These statements are subject to the Private Securities
Litigation Reform Act of 1995 and are based on management’s estimates, assumptions
and projections. Actual results may differ materially from those projected in the forward-
looking statements for a variety of reasons. Projected weighted average rate changes in
our Property-Liability business may be lower than projected due to a decrease in the
number of policies in force. Loss costs in our Property-Liability business, including
losses due to catastrophes such as hurricanes and earthquakes, may exceed
management’s projections. Competitive pressures could lead to sales of Property-
Liability products, including private passenger auto and homeowners insurance, that are
lower than projected by management, due to our increased prices and our modified
underwriting practices. Investment income may not meet management’s projections due
to poor stock market performance or lower returns on the fixed income portfolio due to
worsening credit conditions. Continuing low interest rates and depressed equity markets
could increase DAC amortization, reduce contract charges, the deferred acquisition cost
asset, investment margins and the profitability of the Allstate Financial segment.
Readers are encouraged to review the other risk factors facing Allstate that we disclose
in our current, quarterly and annual reports to the Securities and Exchange Commission
on Forms 8-K, 10-Q and 10-K. We undertake no obligation to publicly correct or update
any forward-looking statements. This press release contains unaudited financial
information.
The supplemental operating information provided allows for additional analysis of results
of operations. The after-tax effects of realized capital gains and losses, gain (loss) on
disposition of operations, dividends on preferred securities of subsidiary trust and the
cumulative effect of a change in accounting principle have been excluded from operating
income due to the volatility between periods and because such data is often excluded
18. NEWS
page 18
when evaluating the overall financial performance of insurers. After-tax realized capital
gains and losses are presented net of the effects of Allstate Financial’s deferred policy
acquisition cost amortization to the extent that such effects resulted from the recognition
of realized capital gains and losses. Operating income should not be considered as a
substitute for any generally accepted accounting principles (GAAP) measure of
performance. The method of calculating operating income may be different from the
method used by other companies and therefore comparability may be limited.
The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines
insurer. Widely known through the “You’re In Good Hands With Allstate®” slogan,
Allstate provides insurance products to more than 16 million households and has
approximately 12,500 exclusive agents and financial specialists in the U.S. and Canada.
Customers can access Allstate products and services through Allstate agents, or in
select states at allstate.com and 1-800-Allstatesm. Encompasssm and Deerbrook®
Insurance brand property and casualty products are sold exclusively through
independent agents. Allstate Financial Group includes the businesses that provide life
insurance, retirement and investment products, through Allstate agents, workplace
marketing, independent agents, banks and securities firms.
The Allstate Corporation prepares an interim investor supplement, containing standard
information that is not totally available at the time of the earnings release. The
supplement is posted to the company’s website and will be updated periodically over the
next 30 days, and can be accessed by going to the Allstate web site at allstate.com and
clicking on “About Allstate.” From there, go to the “Find Financial Information” button.
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