The Allstate Corporation ALL reported first-quarter 2016 operating earnings per share of 84 cents that comfortably beat the Zacks Consensus Estimate of 75 cents by 12%. The bottom line, however, plunged 42.5% year over year due to lower investment income and catastrophe losses, partially offset by higher insurance premiums and favorable mortality experience.The Allstate Corporation (ALL) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany The Allstate’s total operating revenue increased2.3% year over year to $9 billion on higher Property-liability insurance premiums (up 4% to $7.7 billion) and Life and annuity premiums (Allstate Financial Premiums) and contract charges (up 5.4% year over year to $0.6 billion).Revenues comfortably surpassed the Zacks Consensus Estimate of $8 billion.Net investment income declined 14% to $0.7 billion from the prior-year quarter. Lower income from performance-based and fixed income portfolios resulted in the underperformance .Total revenues were affected by net realized losses of $149 million due to loss on sale of energy-related investments and higher impairment write-downs. The company had reported net realized gains of $139 million in the first quarter of 2015Property-liability insurance claims and claim expenses rose 13.8% year over year to $5.7 billion in the first quarter, while operating expenses decreased 10% to $982 million.During the quarter, the company incurred catastrophe losses of $827 million, wider than $294 million in the year-ago quarter. Two major hailstorms in the quarter resulted in the wider losses.Quarter in DetailProperty-Liability net premiums earned were $7.5 billion, up 4% from the prior-year quarter. The upside was primarily driven by a 4.3% increase in Allstate brand premiums on the back of higher Allstate brand auto premiums. Also, a 2.5% increase in net premiums written from the Esurance brand due to an increase in auto average premiums boosted net premiums. These were partly offset by a 6.7% decline in premiums written from the Encompass brand due to policies in force.The segment’s combined ratio deteriorated 470 basis points (bps) year over year to 98.4% due to a 107 bps impact of catastrophe losses.Operating income for Allstate Financial plunged 22.4% year over year to $104 million. The decline stemmed from lower yield on fixed income assets and a decrease in performance-based investment income despite a 9% year on year growth in policies in force.Investment and Capital PositionAs of Mar 31, 2016, Allstate’s total investment portfolio expanded by 1.4% to $78.9 billion from $77.8 billion at year-end 2015.Book value of $48.89 per share decreased 0.6% year over year.As of Mar 31, 2016, total equity increased by 1.6% to $20.3 billion in the reported quarter, while total assets inched up 1.2% to $105.9 billion from that as of Dec 31 2015. Long-term debt slipped 0.3% to $5.1 billion from the 2015-end level.Stock Repurchase and Dividend UpdateAllstate’s board has authorized a $1.5 billion share repurchase program which is expected to be completed by Nov 2017. The company declared a cash dividend of 33 cents per share. This represents a 10% hikes from the prior payout.Allstate returned $565 million worth of capital to shareholders this quarter.Zacks Rank and Performance of Other InsurersAllstate carries a Zacks Rank #3 (Hold). The bottom line at RLI Corp. RLI outperformed the Zacks Consensus Estimate, while Travelers Companies Inc. TRV and Progressive Corp PGR missed the same during the first quarter.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI CORP (RLI): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report ALLSTATE CORP (ALL): Free Stock Analysis Report PROGRESSIVE COR (PGR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research