Allstate Reports Second Quarter 2024 Results
Allstate (NYSE: ALL) reported strong Q2 2024 results, with consolidated revenues up 12.4% to $15.7 billion. The company achieved net income of $301 million, compared to a loss in the prior year quarter. Adjusted net income was $429 million, or $1.61 per diluted share. Property-Liability premiums earned increased 11.9% to $13.3 billion, driven by higher average premiums from rate increases. The underlying combined ratio improved to 85.3, reflecting better execution of the profit improvement plan. Allstate Protection auto insurance saw improved profitability, while homeowners insurance growth reflected higher average premiums and increased policies in force. Protection Services revenues grew 12.7% to $773 million, primarily due to Allstate Protection Plans and Arity. The investment portfolio generated net investment income of $712 million, up $102 million from the prior year quarter.
Allstate (NYSE: ALL) ha riportato risultati solidi per il secondo trimestre del 2024, con ricavi consolidati aumentati del 12,4% a 15,7 miliardi di dollari. L'azienda ha registrato un utile netto di 301 milioni di dollari, rispetto a una perdita nello stesso periodo dell'anno precedente. L'utile netto rettificato è stato di 429 milioni di dollari, equivalenti a 1,61 dollari per azione diluita. I premi delle assicurazioni Property-Liability sono aumentati dell'11,9%, raggiungendo i 13,3 miliardi di dollari, grazie a premi medi più elevati derivanti dagli aumenti tariffari. Il rapporto combinato sottostante è migliorato a 85,3, riflettendo una migliore attuazione del piano di miglioramento del profitto. L'assicurazione auto di Allstate Protection ha visto un aumento della redditività, mentre la crescita delle assicurazioni per la casa ha riflettuto premi medi più elevati e un aumento delle polizze attive. I ricavi dei Servizi di Protezione sono cresciuti del 12,7% a 773 milioni di dollari, principalmente grazie ai Piani di Protezione Allstate e Arity. Il portafoglio d'investimento ha generato un reddito netto da investimenti di 712 milioni di dollari, aumentando di 102 milioni di dollari rispetto allo stesso periodo dell'anno precedente.
Allstate (NYSE: ALL) informó resultados sólidos para el segundo trimestre de 2024, con ingresos consolidados que aumentaron un 12.4% a 15.7 mil millones de dólares. La compañía logró un ingreso neto de 301 millones de dólares, en comparación con una pérdida en el trimestre del año anterior. El ingreso neto ajustado fue de 429 millones de dólares, o 1.61 dólares por acción diluida. Las primas de Property-Liability aumentaron un 11.9% a 13.3 mil millones de dólares, impulsadas por mayores primas promedio debido a los aumentos de tarifas. El ratio combinado subyacente mejoró a 85.3, reflejando una mejor ejecución del plan de mejora de ganancias. El seguro de automóvil de Allstate Protection vio una rentabilidad mejorada, mientras que el crecimiento del seguro para propietarios reflejó primas promedio más altas y un aumento de pólizas activas. Los ingresos de los Servicios de Protección crecieron un 12.7% a 773 millones de dólares, principalmente debido a los Planes de Protección de Allstate y Arity. La cartera de inversiones generó un ingreso neto por inversiones de 712 millones de dólares, un aumento de 102 millones de dólares en comparación con el trimestre del año anterior.
올스테이트(Allstate, NYSE: ALL)는 2024년 2분기 실적이 매우 양호하다고 보고하며 총 수익이 12.4% 증가하여 157억 달러에 달했다고 발표했습니다. 이 회사는 3억 1천만 달러의 순이익을 기록하였으며, 전년 동기에는 손실이 있었습니다. 조정 후 순이익은 4억 2천9백만 달러, 즉 희석 주당 1.61달러에 해당합니다. 재산-배상 보험의 수익은 평균 보험료 인상으로 인해 11.9% 증가하여 133억 달러에 도달했습니다. 기초 결합 비율은 85.3으로 개선되어 이익 개선 계획의 실행이 더 잘 이루어지고 있음을 반영합니다. 올스테이트 프로텍션 자동차 보험은 수익성 개선을 보였고, 주택 보험의 성장은 평균 보험료 인상 및 시행 중인 보험 증권 증가로 나타났습니다. 프로텍션 서비스의 수익은 12.7% 증가하여 7억 7300만 달러에 달했으며, 이는 주로 올스테이트 프로텍션 플랜 및 아리티(Arity)에 기인합니다. 투자 포트폴리오는 7억 1200만 달러의 순 투자 수익을 창출하였으며, 이는 전년 동기 대비 1억 200만 달러 증가한 수치입니다.
Allstate (NYSE: ALL) a annoncé de solides résultats pour le deuxième trimestre 2024, avec des revenus consolidés en hausse de 12,4 % à 15,7 milliards de dollars. L'entreprise a réalisé un bénéfice net de 301 millions de dollars, par rapport à une perte au cours de l'année précédente. Le bénéfice net ajusté s'élevait à 429 millions de dollars, soit 1,61 dollar par action diluée. Les primes d'assurance biens et responsabilités ont augmenté de 11,9 % pour atteindre 13,3 milliards de dollars, soutenues par des primes moyennes plus élevées dues à des augmentations de tarifs. Le ratio combiné sous-jacent a progressé à 85,3, ce qui reflète une meilleure exécution du plan d'amélioration des profits. L'assurance automobile Allstate Protection a vu sa rentabilité s'améliorer, tandis que la croissance de l'assurance habitation a reflété des primes moyennes plus élevées et une augmentation des polices en vigueur. Les revenus des Services de protection ont augmenté de 12,7 % pour atteindre 773 millions de dollars, principalement en raison des Plans de protection Allstate et d'Arity. Le portefeuille d'investissement a généré un revenu net d'investissement de 712 millions de dollars, en hausse de 102 millions de dollars par rapport au trimestre de l'année précédente.
Allstate (NYSE: ALL) hat für das zweite Quartal 2024 starke Ergebnisse berichtet, mit einheitlichen Einnahmen, die um 12,4 % auf 15,7 Milliarden US-Dollar gestiegen sind. Das Unternehmen erzielte einen Nettogewinn von 301 Millionen US-Dollar, verglichen mit einem Verlust im Vorjahresquartal. Der bereinigte Nettogewinn betrug 429 Millionen US-Dollar, oder 1,61 US-Dollar pro verwässerter Aktie. Die erworbenen Prämien für Sach- und Haftpflichtversicherungen stiegen um 11,9 % auf 13,3 Milliarden US-Dollar, angetrieben durch höhere durchschnittliche Prämien aufgrund von Tarifsteigerungen. Der unterliegende kombinierte Quote verbesserte sich auf 85,3, was eine bessere Umsetzung des Gewinnverbesserungsplans widerspiegelt. Die Kfz-Versicherung von Allstate Protection verzeichnete eine verbesserte Rentabilität, während das Wachstum der Wohngebäudeversicherung höhere durchschnittliche Prämien und eine Zunahme der aktiven Policen spiegelte. Die Einnahmen aus Schutzdienstleistungen wuchsen um 12,7 % auf 773 Millionen US-Dollar, hauptsächlich aufgrund der Allstate Protection Plans und Arity. Das Anlageportfolio generierte eine Nettoanlageerträge von 712 Millionen US-Dollar, was einem Anstieg von 102 Millionen US-Dollar im Vergleich zum Vorjahresquartal entspricht.
- Consolidated revenues increased 12.4% to $15.7 billion
- Net income of $301 million, compared to a loss in the prior year quarter
- Adjusted net income of $429 million, or $1.61 per diluted share
- Property-Liability premiums earned increased 11.9% to $13.3 billion
- Underlying combined ratio improved to 85.3
- Protection Services revenues grew 12.7% to $773 million
- Net investment income increased by $102 million to $712 million
- Property-Liability underwriting loss of $145 million
- Allstate Protection auto insurance policies in force decreased by 1.6%
- Homeowners insurance recorded combined ratio of 111.5, indicating an underwriting loss
- Net losses on investments and derivatives of $103 million
Allstate's Q2 2024 results demonstrate a significant turnaround from the previous year, with several key improvements worth noting:
- Net income of
$301 million compared to a loss of$1.39 billion in Q2 2023 - Adjusted net income of
$429 million or$1.61 per diluted share - Total revenues increased by
12.4% to$15.7 billion - Property-Liability combined ratio improved to 101.1 from 117.6 in Q2 2023
- Underlying combined ratio improved to 85.3 from 92.9 in Q2 2023
The company's profit improvement plan appears to be yielding results, particularly in the auto insurance segment. The Allstate Protection auto insurance recorded combined ratio improved to 95.9, down 12.4 points from the previous year. This improvement was driven by higher earned premiums, better underlying loss experience and operating efficiencies.
However, challenges remain in the homeowners insurance segment, with a recorded combined ratio of 111.5, although this is a significant improvement from 145.3 in Q2 2023. Catastrophe losses, while lower than the previous year, still reached
The company's investment portfolio performed well, with net investment income increasing by
Overall, Allstate's Q2 results show promising signs of recovery and effective execution of its profit improvement strategies, but ongoing challenges in the homeowners segment and the impact of catastrophe losses warrant continued attention.
Allstate's Q2 2024 results reflect a broader trend in the insurance industry of adapting to challenging market conditions:
- The improvement in auto insurance results aligns with industry-wide efforts to address profitability issues through rate increases and underwriting actions.
- The continued pressure in homeowners insurance, despite improvements, highlights the ongoing industry challenge of managing climate-related risks and increasing catastrophe losses.
- The growth in National General's policies (
12% increase) and its strong performance in the independent agent channel demonstrate the value of diversified distribution strategies.
Allstate's focus on its Transformative Growth plan is particularly noteworthy. This strategy, which aims to increase market share in the independent agent channel and expand protection offerings, positions the company well in a competitive landscape where consumers increasingly seek choice and customization.
The company's investment in technology and data analytics, evident in the growth of Arity (revenue up
However, the planned sale of the Health and Benefits business suggests a strategic refocus on core property and casualty lines, a move that could impact the company's diversification but potentially allow for greater operational efficiency.
As the industry continues to navigate inflationary pressures and evolving consumer expectations, Allstate's balanced approach of improving profitability while investing in growth initiatives appears well-aligned with current market dynamics.
Allstate's Q2 2024 results offer several insights into broader market trends and consumer behavior:
- The growth in Protection Services revenues (
12.7% increase) suggests increasing consumer demand for comprehensive protection beyond traditional insurance products. - The
21.1% growth in Allstate Protection Plans, particularly in international markets, indicates a global trend towards extended warranty and protection plans for consumer goods. - The decline in Allstate Roadside revenues (
22.7% decrease) may reflect changing consumer preferences or increased competition in the roadside assistance market. - The growth in Arity's advertising revenue points to the increasing value of data-driven insights in targeted marketing within the insurance industry.
The company's success in growing National General's policies, particularly in specialty vehicle insurance and middle market customers, suggests untapped potential in niche insurance markets.
However, the slight decline in Allstate brand auto policies (
The growth in homeowners policies (
Overall, Allstate's results reflect a market that is evolving rapidly, with consumers seeking more comprehensive and tailored protection solutions, while also becoming increasingly sensitive to pricing in certain segments.
Operational execution delivers strong underlying results
The Allstate Corporation Consolidated Highlights |
||||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
|||||||||||||
($ in millions, except per share data and ratios) |
2024 |
|
2023 |
|
% / pts Change |
|
|
2024 |
|
|
2023 |
|
% / pts Change |
|||
Consolidated revenues |
$ |
15,714 |
$ |
13,979 |
|
12.4 |
% |
|
$ |
30,973 |
|
$ |
27,765 |
|
11.6 |
% |
Net income (loss) applicable to common shareholders |
|
301 |
|
(1,389 |
) |
NM |
|
|
|
1,490 |
|
|
(1,735 |
) |
NM |
|
per diluted common share (1) |
|
1.13 |
|
(5.29 |
) |
NM |
|
|
|
5.58 |
|
|
(6.59 |
) |
NM |
|
Adjusted net income (loss)* |
|
429 |
|
(1,162 |
) |
NM |
|
|
|
1,796 |
|
|
(1,504 |
) |
NM |
|
per diluted common share* (1) |
|
1.61 |
|
(4.42 |
) |
NM |
|
|
|
6.73 |
|
|
(5.72 |
) |
NM |
|
Return on Allstate common shareholders’ equity (trailing twelve months) |
|
|
|
|
|
|||||||||||
Net income (loss) applicable to common shareholders |
|
|
|
|
|
19.3 |
% |
|
(17.2 |
)% |
36.5 |
|
||||
Adjusted net income (loss)* |
|
|
|
|
|
21.6 |
% |
|
(12.7 |
)% |
34.3 |
|
||||
Common shares outstanding (in millions) |
|
|
|
|
|
264.0 |
|
|
261.8 |
|
0.8 |
% |
||||
Book value per common share |
|
|
|
|
$ |
62.14 |
|
$ |
51.29 |
|
21.2 |
% |
||||
|
|
|
|
|
|
|
|
|||||||||
Consolidated premiums written (2) |
$ |
15,429 |
$ |
13,731 |
|
12.4 |
% |
|
$ |
29,717 |
|
$ |
26,596 |
|
11.7 |
% |
Property-Liability insurance premiums earned |
|
13,339 |
|
11,921 |
|
11.9 |
% |
|
|
26,239 |
|
|
23,556 |
|
11.4 |
% |
Property-Liability combined ratio |
|
|
|
|
|
|
|
|||||||||
Recorded |
|
101.1 |
|
117.6 |
|
(16.5 |
) |
|
|
97.1 |
|
|
113.1 |
|
(16.0 |
) |
Underlying combined ratio* |
|
85.3 |
|
92.9 |
|
(7.6 |
) |
|
|
86.1 |
|
|
93.1 |
|
(7.0 |
) |
Catastrophe losses |
$ |
2,120 |
$ |
2,696 |
|
(21.4 |
)% |
|
$ |
2,851 |
|
$ |
4,387 |
|
(35.0 |
)% |
Total policies in force (in thousands) |
|
|
|
|
|
199,877 |
|
|
188,022 |
|
6.3 |
% |
||||
| (1) | In periods where a net loss or adjusted net loss is reported, weighted average shares for basic earnings per share is used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation. |
| (2) | Includes premiums written for the Allstate Protection and Protection Services segments and premiums and contract charges for the Health and Benefits segment. |
* |
Measures used in this release that are not based on accounting principles generally accepted in |
| NM = not meaningful | |
Allstate’s strong execution capabilities benefited second quarter results and position us for continued success,” said Tom Wilson, Chair, President and CEO of The Allstate Corporation. “Revenues grew by
“Allstate’s strategy of providing affordable, simple and connected protection resulted in strong policy growth in National General branded property-liability insurance and Allstate protection plans sold by retailers. National General’s policies in force increased by
Second Quarter 2024 Results
-
Total revenues of
$15.7 billion $1.7 billion
-
Net income applicable to common shareholders was
$301 million $1.4 billion $429 million $1.61 $1.2 billion
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-
Property-Liability earned premiums of
$13.3 billion 11.9% in the second quarter of 2024 compared to the prior year quarter, primarily driven by higher average premiums from rate increases. The underwriting loss of$145 million $1.9 billion $2.1 billion
Property-Liability Results |
||||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
|||||||||||||
($ in millions) |
|
2024 |
|
|
2023 |
|
% / pts Change |
|
2024 |
|
2023 |
|
% / pts Change |
|||
Premiums earned |
$ |
13,339 |
|
$ |
11,921 |
|
11.9 |
% |
|
$ |
26,239 |
$ |
23,556 |
|
11.4 |
% |
Allstate brand |
|
10,897 |
|
|
10,002 |
|
8.9 |
|
|
|
21,501 |
|
19,854 |
|
8.3 |
|
National General |
|
2,442 |
|
|
1,919 |
|
27.3 |
|
|
|
4,738 |
|
3,702 |
|
28.0 |
|
|
|
|
|
|
|
|
|
|||||||||
Premiums written |
$ |
14,279 |
|
$ |
12,620 |
|
13.1 |
% |
|
$ |
27,462 |
$ |
24,403 |
|
12.5 |
% |
Allstate brand |
|
11,575 |
|
|
10,525 |
|
10.0 |
|
|
|
22,084 |
|
20,230 |
|
9.2 |
|
National General |
|
2,704 |
|
|
2,095 |
|
29.1 |
|
|
|
5,378 |
|
4,173 |
|
28.9 |
|
|
|
|
|
|
|
|
|
|||||||||
Underwriting income (loss) |
$ |
(145 |
) |
$ |
(2,094 |
) |
93.1 |
% |
|
$ |
753 |
$ |
(3,095 |
) |
NM |
|
Allstate brand |
|
(189 |
) |
|
(1,847 |
) |
89.8 |
|
|
|
601 |
|
(2,819 |
) |
NM |
|
National General |
|
43 |
|
|
(248 |
) |
NM |
|
|
|
153 |
|
(276 |
) |
NM |
|
|
|
|
|
|
|
|
|
|||||||||
Recorded combined ratio |
|
101.1 |
|
|
117.6 |
|
(16.5 |
) |
|
|
97.1 |
|
113.1 |
|
(16.0 |
) |
Underlying combined ratio* |
|
85.3 |
|
|
92.9 |
|
(7.6 |
) |
|
|
86.1 |
|
93.1 |
|
(7.0 |
) |
-
Premiums written increased
13.1% compared to the prior year quarter driven by increases for Allstate brand of10.0% and National General of29.1% .
-
Underwriting loss in the second quarter of 2024 of
$145 million $2.1 billion
- Property-Liability combined ratio was 101.1 for the quarter and 97.1 for the first six months of 2024. The underlying combined ratio* was 85.3 in the second quarter, improving 7.6 points compared to the prior year, as higher earned premiums, improved underlying loss experience and operating efficiencies were partially offset by increased advertising expenses.
- Allstate Protection auto insurance results reflect execution of a comprehensive plan to restore margins through higher rates, lower expenses, underwriting actions and claims process enhancements. Profitability improvement enabled increased growth investment in rate adequate states and risk segments.
Allstate Protection Auto Results |
|||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||
($ in millions, except ratios) |
2024 |
2023 |
% / pts Change |
|
2024 |
2023 |
% / pts Change |
||||||
Premiums earned |
$ |
9,079 |
$ |
8,121 |
11.8 |
% |
|
$ |
17,857 |
$ |
16,029 |
11.4 |
% |
Premiums written |
|
9,284 |
|
8,269 |
12.3 |
|
|
|
18,641 |
|
16,618 |
12.2 |
|
Policies in Force (in thousands) |
|
|
|
|
|
25,124 |
|
25,520 |
(1.6 |
) |
|||
Recorded combined ratio |
|
95.9 |
|
108.3 |
(12.4 |
) |
|
|
96.0 |
|
106.4 |
(10.4 |
) |
Underlying combined ratio* |
|
93.5 |
|
102.2 |
(8.7 |
) |
|
|
94.3 |
|
102.4 |
(8.1 |
) |
-
Earned and written premiums grew
11.8% and12.3% compared to the prior year quarter, respectively. The increase was driven by higher average premium from rate increases, partially offset by a decline in policies in force of1.6% .
-
Allstate brand policies in force decreased by
4.5% compared to prior year quarter as increased new business was offset by customer retention losses.
-
National General policies in force increased by
11.7% due to growth in specialty vehicle insurance and the expansion of the Custom360℠ products to middle market customers.
-
Allstate brand auto rate increases were implemented in 21 locations in the second quarter at an average of
5.7% , resulting in an annualized total brand premium impact of1.0% in the quarter. National General auto rate increases were implemented in 27 locations in the second quarter at an average of11.2% , resulting in an annualized total brand premium impact of2.0% in the quarter.
- The recorded auto insurance combined ratio of 95.9 in the second quarter of 2024 was 12.4 points lower than the prior year quarter, reflecting higher earned premiums, improved underlying loss experience, favorable prior year reserve reestimates and operating efficiencies.
- Allstate brand auto insurance recorded combined ratio of 96.9 in the second quarter of 2024 decreased 11.2 points compared to prior year quarter, primarily driven by higher average earned premiums outpacing moderating underlying loss costs per policy.
- National General auto insurance recorded combined ratio of 91.9 in the second quarter of 2024 was 17.9 points below the prior year quarter, reflecting lower unfavorable prior year non-catastrophe reserve reestimates and improved underlying results.
-
Prior year non-catastrophe reserve reestimates were favorable
$171 million
- The underlying combined ratio* of 93.5 improved by 8.7 points compared to the prior year quarter from higher average premium and moderating loss trends.
-
Allstate Protection homeowners insurance growth reflects higher average premiums and growth in policies in force. Underwriting loss of
$375 million $1.3 billion $189 million $1.8 billion
Allstate Protection Homeowners Results |
|||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||
($ in millions, except ratios) |
2024 |
2023 |
% / pts Change |
|
2024 |
2023 |
% / pts Change |
||||||
Premiums earned |
$ |
3,255 |
$ |
2,883 |
12.9 |
% |
|
$ |
6,409 |
$ |
5,693 |
12.6 |
% |
Premiums written |
|
3,845 |
|
3,381 |
13.7 |
|
|
|
6,719 |
|
5,915 |
13.6 |
|
Policies in Force (in thousands) |
|
|
|
|
|
7,426 |
|
7,268 |
2.2 |
|
|||
Recorded combined ratio |
|
111.5 |
|
145.3 |
(33.8 |
) |
|
|
97.1 |
|
132.3 |
(35.2 |
) |
Catastrophe Losses |
$ |
1,616 |
$ |
2,189 |
(26.2 |
)% |
|
$ |
2,171 |
$ |
3,638 |
(40.3 |
)% |
Underlying combined ratio* |
|
63.5 |
|
67.6 |
(4.1 |
) |
|
|
64.5 |
|
67.6 |
(3.1 |
) |
-
Earned premiums increased by
12.9% and written premiums increased13.7% compared to the prior year quarter, primarily reflecting higher average premium and policies in force growth of2.2% .- Policies in force growth reflects improved retention and increased new policy sales for the Allstate brand.
-
Allstate brand homeowners implemented rate increases in 12 locations in the second quarter at an average of
9.9% , resulting in an annualized total brand premium impact of1.1% in the quarter and4.5% through the first six months of 2024. Implemented rate increases and inflation in insured home replacement costs resulted in a10.7% increase in homeowners insurance average gross written premium compared to the prior year quarter. -
National General homeowners rate increases were implemented in 12 locations in the second quarter at an average of
14.6% , resulting in an annualized total brand premium impact of2.3% in the quarter and3.9% through the first six months of 2024. - The recorded homeowners insurance combined ratio of 111.5 was 33.8 points below the second quarter of 2023, due to lower catastrophe losses and higher earned premiums.
-
Catastrophe losses of
$1.6 billion $573 million - The underlying combined ratio* of 63.5 decreased by 4.1 points compared to the prior year quarter, reflecting higher earned premiums and favorable non-catastrophe claim frequency, partially offset by higher non-catastrophe claim severity.
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-
Protection Services provides broad protection to customers largely through embedded distribution programs. Revenues increased to
$773 million 12.7% higher than the prior year quarter, primarily due to Allstate Protection Plans and Arity. Adjusted net income of$55 million $14 million
Protection Services Results |
|||||||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||
($ in millions) |
|
2024 |
|
|
2023 |
|
% / $ Change |
|
|
2024 |
|
|
2023 |
|
% / $ Change |
||||
Total revenues (1) |
$ |
773 |
|
$ |
686 |
|
|
12.7 |
% |
|
$ |
1,526 |
|
$ |
1,357 |
|
|
12.5 |
% |
Allstate Protection Plans |
|
483 |
|
|
399 |
|
|
21.1 |
|
|
|
947 |
|
|
784 |
|
|
20.8 |
|
Allstate Dealer Services |
|
148 |
|
|
148 |
|
|
— |
|
|
|
294 |
|
|
296 |
|
|
(0.7 |
) |
Allstate Roadside |
|
51 |
|
|
66 |
|
|
(22.7 |
) |
|
|
117 |
|
|
130 |
|
|
(10.0 |
) |
Arity |
|
52 |
|
|
35 |
|
|
48.6 |
|
|
|
91 |
|
|
72 |
|
|
26.4 |
|
Allstate Identity Protection |
|
39 |
|
|
38 |
|
|
2.6 |
|
|
|
77 |
|
|
75 |
|
|
2.7 |
|
Adjusted net income (loss) |
$ |
55 |
|
$ |
41 |
|
$ |
14 |
|
|
$ |
109 |
|
$ |
75 |
|
$ |
34 |
|
Allstate Protection Plans |
|
41 |
|
|
31 |
|
|
10 |
|
|
|
81 |
|
|
59 |
|
|
22 |
|
Allstate Dealer Services |
|
6 |
|
|
6 |
|
|
— |
|
|
|
12 |
|
|
13 |
|
|
(1 |
) |
Allstate Roadside |
|
8 |
|
|
6 |
|
|
2 |
|
|
|
19 |
|
|
10 |
|
|
9 |
|
Arity |
|
(2 |
) |
|
(3 |
) |
|
1 |
|
|
|
(6 |
) |
|
(7 |
) |
|
1 |
|
Allstate Identity Protection |
|
2 |
|
|
1 |
|
|
1 |
|
|
|
3 |
|
|
— |
|
|
3 |
|
(1) Excludes net gains and losses on investments and derivatives. |
|||||||||||||||||||
-
Allstate Protection Plans revenue of
$483 million $84 million 21.1% , compared to the prior year quarter driven by growth in North American and international business. Adjusted net income of$41 million $10 million -
Allstate Dealer Services generated revenue of
$148 million $6 million -
Allstate Roadside revenue of
$51 million 22.7% compared to the prior year quarter reflecting the discontinuance of a large unprofitable account. Adjusted net income of$8 million $2 million -
Arity revenue of
$52 million $17 million $2 million $3 million -
Allstate Identity Protection revenue of
$39 million 2.6% higher than the prior year quarter due to growth from new and existing clients. Adjusted net income of$2 million $1 million
----------------------------------------------------------------------------------------------------------------------------------------------------------
-
Allstate Health and Benefits premiums and contract charges increased
4.6% , or$21 million $58 million
Allstate Health and Benefits Results |
|||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||
($ in millions) |
2024 |
2023 |
% Change |
|
2024 |
2023 |
% Change |
||||||
Premiums and contract charges |
$ |
474 |
$ |
453 |
4.6 |
% |
|
$ |
952 |
$ |
916 |
3.9 |
% |
Employer voluntary benefits |
|
246 |
|
245 |
0.4 |
|
|
|
494 |
|
500 |
(1.2 |
) |
Group health |
|
120 |
|
110 |
9.1 |
|
|
|
238 |
|
217 |
9.7 |
|
Individual health |
|
108 |
|
98 |
10.2 |
|
|
|
220 |
|
199 |
10.6 |
|
Adjusted net income |
$ |
58 |
$ |
57 |
1.8 |
|
|
$ |
114 |
$ |
113 |
0.9 |
% |
-
Allstate Investments
$70.6 billion $712 million $102 million
Allstate Investment Results |
|||||||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||
($ in millions, except ratios) |
|
2024 |
|
|
2023 |
|
$ / pts Change |
|
|
2024 |
|
|
2023 |
|
$ / pts Change |
||||
Net investment income |
$ |
712 |
|
$ |
610 |
|
$ |
102 |
|
|
$ |
1,476 |
|
$ |
1,185 |
|
$ |
291 |
|
Market-based (1) |
|
667 |
|
|
536 |
|
|
131 |
|
|
|
1,293 |
|
|
1,043 |
|
|
250 |
|
Performance-based (1) |
|
107 |
|
|
127 |
|
|
(20 |
) |
|
|
308 |
|
|
253 |
|
|
55 |
|
Net gains (losses) on investments and derivatives |
$ |
(103 |
) |
$ |
(151 |
) |
$ |
48 |
|
|
$ |
(267 |
) |
$ |
(137 |
) |
$ |
(130 |
) |
Change in unrealized net capital gains and losses, pre-tax |
$ |
(152 |
) |
$ |
(342 |
) |
$ |
190 |
|
|
$ |
(425 |
) |
$ |
530 |
|
$ |
(955 |
) |
Total return on investment portfolio |
|
0.7 |
% |
|
0.2 |
% |
|
0.5 |
|
|
|
1.1 |
% |
|
2.5 |
% |
|
(1.4 |
) |
Total return on investment portfolio (trailing twelve months) |
|
|
|
|
|
5.3 |
% |
|
4.2 |
% |
|
1.1 |
|
||||||
(1) Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses. |
|||||||||||||||||||
-
Total return on the investment portfolio was
0.7% for the second quarter of 2024 and5.3% for the latest twelve months. -
Market-based investment income was
$667 million $131 million 24.4% , compared to the prior year quarter, reflecting higher yields in the$52.6 billion -
Performance-based investment income totaled
$107 million $20 million -
Net losses on investments and derivatives were
$103 million $151 million -
Unrealized net capital losses were
$1.2 billion $152 million
Proactive Capital Management
“Operating and financial performance in the second quarter reinforces Allstate’s ability to successfully execute the profit improvement plan while accelerating the implementation of the Transformative Growth strategy. Financial condition and capital position remain strong with statutory surplus in the insurance companies of
Visit www.allstateinvestors.com for additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, August 1. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.
Forward-Looking Statements
This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the
THE ALLSTATE CORPORATION AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) |
|||||||
|
|
|
|
||||
($ in millions, except par value data)
|
June 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Investments |
|
|
|
||||
Fixed income securities, at fair value (amortized cost, net |
$ |
52,576 |
|
|
$ |
48,865 |
|
Equity securities, at fair value (cost |
|
2,216 |
|
|
|
2,411 |
|
Mortgage loans, net |
|
815 |
|
|
|
822 |
|
Limited partnership interests |
|
8,730 |
|
|
|
8,380 |
|
Short-term, at fair value (amortized cost |
|
5,288 |
|
|
|
5,144 |
|
Other investments, net |
|
979 |
|
|
|
1,055 |
|
Total investments |
|
70,604 |
|
|
|
66,677 |
|
Cash |
|
599 |
|
|
|
722 |
|
Premium installment receivables, net |
|
10,762 |
|
|
|
10,044 |
|
Deferred policy acquisition costs |
|
6,112 |
|
|
|
5,940 |
|
Reinsurance and indemnification recoverables, net |
|
8,730 |
|
|
|
8,809 |
|
Accrued investment income |
|
609 |
|
|
|
539 |
|
Deferred income taxes |
|
212 |
|
|
|
219 |
|
Property and equipment, net |
|
777 |
|
|
|
859 |
|
Goodwill |
|
3,502 |
|
|
|
3,502 |
|
Other assets, net |
|
6,461 |
|
|
|
6,051 |
|
Total assets |
$ |
108,368 |
|
|
$ |
103,362 |
|
Liabilities |
|
|
|
||||
Reserve for property and casualty insurance claims and claims expense |
$ |
41,553 |
|
|
$ |
39,858 |
|
Reserve for future policy benefits |
|
1,344 |
|
|
|
1,347 |
|
Contractholder funds |
|
891 |
|
|
|
888 |
|
Unearned premiums |
|
25,929 |
|
|
|
24,709 |
|
Claim payments outstanding |
|
1,575 |
|
|
|
1,353 |
|
Other liabilities and accrued expenses |
|
10,421 |
|
|
|
9,635 |
|
Debt |
|
8,082 |
|
|
|
7,942 |
|
Total liabilities |
|
89,795 |
|
|
|
85,732 |
|
Equity |
|
|
|
||||
Preferred stock and additional capital paid-in, |
|
2,001 |
|
|
|
2,001 |
|
Common stock, |
|
9 |
|
|
|
9 |
|
Additional capital paid-in |
|
3,927 |
|
|
|
3,854 |
|
Retained income |
|
50,718 |
|
|
|
49,716 |
|
Treasury stock, at cost (636 million and 638 million shares) |
|
(37,036 |
) |
|
|
(37,110 |
) |
Accumulated other comprehensive income: |
|
|
|
||||
Unrealized net capital gains and losses |
|
(938 |
) |
|
|
(604 |
) |
Unrealized foreign currency translation adjustments |
|
(113 |
) |
|
|
(98 |
) |
Unamortized pension and other postretirement prior service credit |
|
12 |
|
|
|
13 |
|
Discount rate for reserve for future policy benefits |
|
13 |
|
|
|
(11 |
) |
Total accumulated other comprehensive loss |
|
(1,026 |
) |
|
|
(700 |
) |
Total Allstate shareholders’ equity |
|
18,593 |
|
|
|
17,770 |
|
Noncontrolling interest |
|
(20 |
) |
|
|
(140 |
) |
Total equity |
|
18,573 |
|
|
|
17,630 |
|
Total liabilities and equity |
$ |
108,368 |
|
|
$ |
103,362 |
|
THE ALLSTATE CORPORATION AND SUBSIDIARIES |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
|
|
|
|
||||||||||||
($ in millions, except per share data) |
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Property and casualty insurance premiums |
$ |
13,952 |
|
|
$ |
12,470 |
|
|
$ |
27,464 |
|
|
$ |
24,643 |
|
Accident and health insurance premiums and contract charges |
|
474 |
|
|
|
453 |
|
|
|
952 |
|
|
|
916 |
|
Other revenue |
|
679 |
|
|
|
597 |
|
|
|
1,348 |
|
|
|
1,158 |
|
Net investment income |
|
712 |
|
|
|
610 |
|
|
|
1,476 |
|
|
|
1,185 |
|
Net gains (losses) on investments and derivatives |
|
(103 |
) |
|
|
(151 |
) |
|
|
(267 |
) |
|
|
(137 |
) |
Total revenues |
|
15,714 |
|
|
|
13,979 |
|
|
|
30,973 |
|
|
|
27,765 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses |
|
|
|
|
|
|
|
||||||||
Property and casualty insurance claims and claims expense |
|
10,801 |
|
|
|
11,727 |
|
|
|
20,302 |
|
|
|
22,053 |
|
Accident, health and other policy benefits |
|
291 |
|
|
|
258 |
|
|
|
587 |
|
|
|
523 |
|
Amortization of deferred policy acquisition costs |
|
2,001 |
|
|
|
1,789 |
|
|
|
3,940 |
|
|
|
3,533 |
|
Operating costs and expenses |
|
2,019 |
|
|
|
1,786 |
|
|
|
3,904 |
|
|
|
3,502 |
|
Pension and other postretirement remeasurement (gains) losses |
|
(9 |
) |
|
|
(40 |
) |
|
|
(11 |
) |
|
|
(93 |
) |
Restructuring and related charges |
|
13 |
|
|
|
27 |
|
|
|
23 |
|
|
|
54 |
|
Amortization of purchased intangibles |
|
70 |
|
|
|
82 |
|
|
|
139 |
|
|
|
163 |
|
Interest expense |
|
98 |
|
|
|
98 |
|
|
|
195 |
|
|
|
184 |
|
Total costs and expenses |
|
15,284 |
|
|
|
15,727 |
|
|
|
29,079 |
|
|
|
29,919 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations before income tax expense |
|
430 |
|
|
|
(1,748 |
) |
|
|
1,894 |
|
|
|
(2,154 |
) |
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
83 |
|
|
|
(373 |
) |
|
|
349 |
|
|
|
(458 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
347 |
|
|
|
(1,375 |
) |
|
|
1,545 |
|
|
|
(1,696 |
) |
|
|
|
|
|
|
|
|
||||||||
Less: Net income (loss) attributable to noncontrolling interest |
|
16 |
|
|
|
(23 |
) |
|
|
(4 |
) |
|
|
(24 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Allstate |
|
331 |
|
|
|
(1,352 |
) |
|
|
1,549 |
|
|
|
(1,672 |
) |
|
|
|
|
|
|
|
|
||||||||
Less: Preferred stock dividends |
|
30 |
|
|
|
37 |
|
|
|
59 |
|
|
|
63 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) applicable to common shareholders |
$ |
301 |
|
|
$ |
(1,389 |
) |
|
$ |
1,490 |
|
|
$ |
(1,735 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings per common share: |
|
|
|
|
|
|
|
||||||||
Net income (loss) applicable to common shareholders per common share - Basic |
$ |
1.14 |
|
|
$ |
(5.29 |
) |
|
$ |
5.65 |
|
|
$ |
(6.59 |
) |
Weighted average common shares - Basic |
|
264.1 |
|
|
|
262.6 |
|
|
|
263.8 |
|
|
|
263.1 |
|
Net income (loss) applicable to common shareholders per common share - Diluted |
$ |
1.13 |
|
|
$ |
(5.29 |
) |
|
$ |
5.58 |
|
|
$ |
(6.59 |
) |
Weighted average common shares - Diluted |
|
267.1 |
|
|
|
262.6 |
|
|
|
266.8 |
|
|
|
263.1 |
|
Definitions of Non-GAAP Measures
We believe that investors’ understanding of Allstate’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Adjusted net income is net income (loss) applicable to common shareholders, excluding:
- Net gains and losses on investments and derivatives
- Pension and other postretirement remeasurement gains and losses
- Amortization or impairment of purchased intangibles
- Gain or loss on disposition
- Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years
- Related income tax expense or benefit of these items
Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income.
We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company’s ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of net gains and losses on investments and derivatives, pension and other postretirement remeasurement gains and losses, amortization or impairment of purchased intangibles, gain or loss on disposition and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Net gains and losses on investments and derivatives, and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Gain or loss on disposition is excluded because it is non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management’s performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business.
The following tables reconcile net income (loss) applicable to common shareholders and adjusted net income (loss). Taxes on adjustments to reconcile net income (loss) applicable to common shareholders and adjusted net income (loss) generally use a
($ in millions, except per share data) |
Three months ended June 30, |
||||||||||||||
|
Consolidated |
|
Per diluted common share |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) applicable to common shareholders (1) |
$ |
301 |
|
|
$ |
(1,389 |
) |
|
$ |
1.13 |
|
|
$ |
(5.29 |
) |
Net (gains) losses on investments and derivatives |
|
103 |
|
|
|
151 |
|
|
|
0.38 |
|
|
|
0.58 |
|
Pension and other postretirement remeasurement (gains) losses |
|
(9 |
) |
|
|
(40 |
) |
|
|
(0.03 |
) |
|
|
(0.15 |
) |
Amortization of purchased intangibles |
|
70 |
|
|
|
82 |
|
|
|
0.26 |
|
|
|
0.31 |
|
(Gain) loss on disposition |
|
(1 |
) |
|
|
8 |
|
|
|
— |
|
|
|
0.03 |
|
Non-recurring costs |
|
— |
|
|
|
90 |
|
|
|
— |
|
|
|
0.34 |
|
Income tax benefit |
|
(35 |
) |
|
|
(64 |
) |
|
|
(0.13 |
) |
|
|
(0.24 |
) |
Adjusted net income (loss) * (1) |
$ |
429 |
|
|
$ |
(1,162 |
) |
|
$ |
1.61 |
|
|
$ |
(4.42 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) |
|
|
|
|
|
— |
|
|
|
1.7 |
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Six months ended June 30, |
||||||||||||||
|
Consolidated |
|
Per diluted common share |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) applicable to common shareholders (1) |
$ |
1,490 |
|
|
$ |
(1,735 |
) |
|
$ |
5.58 |
|
|
$ |
(6.59 |
) |
Net (gains) losses on investments and derivatives |
|
267 |
|
|
|
137 |
|
|
|
1.00 |
|
|
|
0.52 |
|
Pension and other postretirement remeasurement (gains) losses |
|
(11 |
) |
|
|
(93 |
) |
|
|
(0.04 |
) |
|
|
(0.35 |
) |
Amortization of purchased intangibles |
|
139 |
|
|
|
163 |
|
|
|
0.52 |
|
|
|
0.62 |
|
(Gain) loss on disposition |
|
(5 |
) |
|
|
(1 |
) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
Non-recurring costs (2) |
|
— |
|
|
|
90 |
|
|
|
— |
|
|
|
0.34 |
|
Income tax benefit |
|
(84 |
) |
|
|
(65 |
) |
|
|
(0.31 |
) |
|
|
(0.25 |
) |
Adjusted net income (loss) * (1) |
$ |
1,796 |
|
|
$ |
(1,504 |
) |
|
$ |
6.73 |
|
|
$ |
(5.72 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) |
|
|
|
|
|
— |
|
|
|
2.1 |
|
||||
| _____________ | |
| (1) | In periods where a net loss or adjusted net loss is reported, weighted average shares for basic earnings per share is used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation. |
| (2) | Relates to settlement costs for non-recurring litigation that is outside of the ordinary course of business. |
Adjusted net income (loss) return on Allstate common shareholders’ equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders’ equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on Allstate common shareholders’ equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average Allstate common shareholders’ equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders’ equity primarily applicable to Allstate's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in equity prices and interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and return on Allstate common shareholders’ equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on Allstate common shareholders’ equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on Allstate common shareholders’ equity from return on Allstate common shareholders’ equity is the transparency and understanding of their significance to return on common shareholders’ equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on Allstate common shareholders’ equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders’ equity and return on Allstate common shareholders’ equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders’ equity results in their evaluation of our and our industry’s financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management’s utilization of capital. We also provide it to facilitate a comparison to our long-term adjusted net income return on Allstate common shareholders’ equity goal. Adjusted net income return on Allstate common shareholders’ equity should not be considered a substitute for return on Allstate common shareholders’ equity and does not reflect the overall profitability of our business.
The following tables reconcile return on Allstate common shareholders’ equity and adjusted net income (loss) return on Allstate common shareholders’ equity.
($ in millions) |
For the twelve months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Return on Allstate common shareholders’ equity |
|
|
|
||||
Numerator: |
|
|
|
||||
Net income (loss) applicable to common shareholders |
$ |
2,909 |
|
|
$ |
(2,723 |
) |
Denominator: |
|
|
|
||||
Beginning Allstate common shareholders’ equity |
$ |
13,516 |
|
|
$ |
18,094 |
|
Ending Allstate common shareholders’ equity (1) |
|
16,592 |
|
|
|
13,516 |
|
Average Allstate common shareholders’ equity |
$ |
15,054 |
|
|
$ |
15,805 |
|
Return on Allstate common shareholders’ equity |
|
19.3 |
% |
|
|
(17.2 |
)% |
($ in millions) |
For the twelve months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Adjusted net income (loss) return on Allstate common shareholders’ equity |
|
|
|
||||
Numerator: |
|
|
|
||||
Adjusted net income (loss) * |
$ |
3,551 |
|
|
$ |
(2,266 |
) |
|
|
|
|
||||
Denominator: |
|
|
|
||||
Beginning Allstate common shareholders’ equity |
$ |
13,516 |
|
|
$ |
18,094 |
|
Less: Unrealized net capital gains and losses |
|
(1,845 |
) |
|
|
(2,140 |
) |
Adjusted beginning Allstate common shareholders’ equity |
|
15,361 |
|
|
|
20,234 |
|
|
|
|
|
||||
Ending Allstate common shareholders’ equity (1) |
|
16,592 |
|
|
|
13,516 |
|
Less: Unrealized net capital gains and losses |
|
(938 |
) |
|
|
(1,845 |
) |
Adjusted ending Allstate common shareholders’ equity |
|
17,530 |
|
|
|
15,361 |
|
Average adjusted Allstate common shareholders’ equity |
$ |
16,446 |
|
|
$ |
17,798 |
|
Adjusted net income (loss) return on Allstate common shareholders’ equity * |
|
21.6 |
% |
|
|
(12.7 |
)% |
| _____________ | |
(1) |
Excludes equity related to preferred stock of |
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization or impairment of purchased intangibles (“underlying combined ratio”) is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year non-catastrophe reserve reestimates on the combined ratio, and the effect of amortization or impairment of purchased intangibles on the combined ratio. We believe that this ratio is useful to investors, and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves, which could increase or decrease current year net income. Amortization or impairment of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.
The following tables reconcile the respective combined ratio to the underlying combined ratio. Underwriting margin is calculated as
Property-Liability |
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Combined ratio |
101.1 |
|
|
117.6 |
|
|
97.1 |
|
|
113.1 |
|
Effect of catastrophe losses |
(15.9 |
) |
|
(22.6 |
) |
|
(10.9 |
) |
|
(18.6 |
) |
Effect of prior year non-catastrophe reserve reestimates |
0.5 |
|
|
(1.6 |
) |
|
0.3 |
|
|
(0.9 |
) |
Effect of amortization of purchased intangibles |
(0.4 |
) |
|
(0.5 |
) |
|
(0.4 |
) |
|
(0.5 |
) |
Underlying combined ratio* |
85.3 |
|
|
92.9 |
|
|
86.1 |
|
|
93.1 |
|
|
|
|
|
|
|
|
|
||||
Effect of prior year catastrophe reserve reestimates |
(1.0 |
) |
|
0.3 |
|
|
(1.1 |
) |
|
(0.1 |
) |
Allstate Protection - Auto Insurance |
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Combined ratio |
95.9 |
|
|
108.3 |
|
|
96.0 |
|
|
106.4 |
|
Effect of catastrophe losses |
(3.9 |
) |
|
(4.2 |
) |
|
(2.6 |
) |
|
(2.7 |
) |
Effect of prior year non-catastrophe reserve reestimates |
1.9 |
|
|
(1.4 |
) |
|
1.3 |
|
|
(0.8 |
) |
Effect of amortization of purchased intangibles |
(0.4 |
) |
|
(0.5 |
) |
|
(0.4 |
) |
|
(0.5 |
) |
Underlying combined ratio* |
93.5 |
|
|
102.2 |
|
|
94.3 |
|
|
102.4 |
|
|
|
|
|
|
|
|
|
||||
Effect of prior year catastrophe reserve reestimates |
(0.1 |
) |
|
(0.2 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
Allstate Protection - Homeowners Insurance |
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Combined ratio |
111.5 |
|
|
145.3 |
|
|
97.1 |
|
|
132.3 |
|
Effect of catastrophe losses |
(49.6 |
) |
|
(75.9 |
) |
|
(33.9 |
) |
|
(63.9 |
) |
Effect of prior year non-catastrophe reserve reestimates |
1.9 |
|
|
(1.4 |
) |
|
1.6 |
|
|
(0.5 |
) |
Effect of amortization of purchased intangibles |
(0.3 |
) |
|
(0.4 |
) |
|
(0.3 |
) |
|
(0.3 |
) |
Underlying combined ratio* |
63.5 |
|
|
67.6 |
|
|
64.5 |
|
|
67.6 |
|
|
|
|
|
|
|
|
|
||||
Effect of prior year catastrophe reserve reestimates |
(3.9 |
) |
|
1.8 |
|
|
(4.3 |
) |
|
0.8 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731608197/en/
Nick Nottoli
Media Relations
(847) 402-5600
Allister Gobin
Investor Relations
(847) 402-2800
Source: The Allstate Corporation
FAQ
What was Allstate's (ALL) revenue in Q2 2024?
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What was Allstate's (ALL) adjusted net income per share in Q2 2024?
How did Allstate's (ALL) Property-Liability segment perform in Q2 2024?
What was Allstate's (ALL) net investment income in Q2 2024?
