Allstate Reports Third Quarter 2024 Results
Allstate (NYSE: ALL) reported strong Q3 2024 financial results with total revenues of $16.6 billion, up 14.7% year-over-year. Net income reached $1.2 billion ($4.33 per share) compared to a loss of $41 million in Q3 2023. Property-Liability earned premiums increased 11.6% to $13.7 billion, while underwriting income improved to $495 million. Auto insurance generated $486 million in underwriting income despite $1.7 billion in catastrophe losses. The company maintained strong capitalization with $17.3 billion in statutory surplus and $3.0 billion in holding company assets.
Allstate (NYSE: ALL) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con ricavi totali di 16,6 miliardi di dollari, in aumento del 14,7% rispetto all'anno precedente. Il reddito netto ha raggiunto 1,2 miliardi di dollari (4,33 dollari per azione) rispetto a una perdita di 41 milioni di dollari nel terzo trimestre del 2023. I premi guadagnati nella divisione Responsabilità Civile hanno registrato un aumento dell'11,6%, raggiungendo 13,7 miliardi di dollari, mentre il reddito da sottoscrizione è migliorato a 495 milioni di dollari. L'assicurazione auto ha generato 486 milioni di dollari in reddito da sottoscrizione nonostante perdite per catastrofi di 1,7 miliardi di dollari. L'azienda ha mantenuto una forte capitalizzazione con un surplus statutario di 17,3 miliardi di dollari e 3,0 miliardi di dollari in attivi della holding.
Allstate (NYSE: ALL) informó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos totales de 16.6 mil millones de dólares, un aumento del 14.7% respecto al año anterior. La utilidad neta alcanzó 1.2 mil millones de dólares (4.33 dólares por acción) en comparación con una pérdida de 41 millones de dólares en el tercer trimestre de 2023. Las primas ganadas por la línea de Propiedad y Responsabilidad aumentaron un 11.6%, alcanzando 13.7 mil millones de dólares, mientras que el ingreso por suscripción mejoró a 495 millones de dólares. El seguro de auto generó 486 millones de dólares en ingresos por suscripción a pesar de pérdidas por catástrofes de 1.7 mil millones de dólares. La compañía mantuvo una fuerte capitalización con un superávit estatutario de 17.3 mil millones de dólares y 3.0 mil millones de dólares en activos de la sociedad matriz.
올스테이트 (NYSE: ALL)는 2024년 3분기 재무 결과가 견고하다고 보고했으며, 총 수익은 166억 달러로 전년 대비 14.7% 증가했습니다. 순이익은 12억 달러 (주당 4.33 달러)에 달하며, 이는 2023년 3분기의 4100만 달러 손실과 비교됩니다. 재산-책임 부문의 수익 보험료는 11.6% 증가하여 137억 달러에 이르렀고, 인수 소득은 4억 9500만 달러로 개선되었습니다. 자동차 보험은 17억 달러의 재해 손실에도 불구하고 4억 8600만 달러의 인수 소득을 창출했습니다. 이 회사는 173억 달러의 법정 잉여금과 30억 달러의 지주 회사 자산으로 강력한 자본금을 유지하고 있습니다.
Allstate (NYSE: ALL) a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec des revenus totaux de 16,6 milliards de dollars, en hausse de 14,7 % par rapport à l'année précédente. Le bénéfice net a atteint 1,2 milliard de dollars (4,33 dollars par action) par rapport à une perte de 41 millions de dollars au troisième trimestre 2023. Les primes gagnées en assurance de biens et de responsabilité ont augmenté de 11,6 % pour atteindre 13,7 milliards de dollars, tandis que le revenu d'assurance a été amélioré à 495 millions de dollars. L'assurance automobile a généré 486 millions de dollars de revenu d'assurance malgré des pertes de 1,7 milliard de dollars dues à des catastrophes. L'entreprise a maintenu une forte capitalisation avec un excédent statutaire de 17,3 milliards de dollars et 3,0 milliards de dollars d'actifs de la société mère.
Allstate (NYSE: ALL) hat starke Finanzberichte für das dritte Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von 16,6 Milliarden Dollar, was einem Anstieg von 14,7% im Vergleich zum Vorjahr entspricht. Der Nettogewinn erreichte 1,2 Milliarden Dollar (4,33 Dollar pro Aktie) im Vergleich zu einem Verlust von 41 Millionen Dollar im dritten Quartal 2023. Die verdienten Prämien in der Sach- und Haftpflichtversicherung stiegen um 11,6% auf 13,7 Milliarden Dollar, während das Underwriting-Einkommen auf 495 Millionen Dollar anstieg. Die Kfz-Versicherung erzielte trotz Katastrophenschäden von 1,7 Milliarden Dollar ein Underwriting-Einkommen von 486 Millionen Dollar. Das Unternehmen behielt eine starke Kapitalisierung mit einem gesetzlichen Überschuss von 17,3 Milliarden Dollar und 3,0 Milliarden Dollar an Vermögenswerten der Holdinggesellschaft.
- Net income improved to $1.2 billion from a loss of $41 million year-over-year
- Revenue increased 14.7% to $16.6 billion
- Property-Liability earned premiums grew 11.6% to $13.7 billion
- Auto insurance generated $486 million in underwriting income
- Adjusted net income return on equity reached 26.1%
- Catastrophe losses increased 44.2% to $1.7 billion
- Auto insurance policies in force declined 1.5%
- Health and Benefits adjusted net income decreased 46.4% to $37 million
- Performance-based investment income decreased by $43 million
Insights
The Q3 results demonstrate strong financial performance with
Key positives include auto insurance underwriting income of
The investment portfolio generated solid returns with net investment income up
The results reveal successful execution of Allstate's profit improvement initiatives, particularly in auto insurance where rate increases and improved underwriting led to significant margin expansion. The auto insurance combined ratio of
The homeowners segment demonstrates pricing discipline with
Protection Services growth of
Generates excellent returns despite higher catastrophe losses
The Allstate Corporation Consolidated Highlights |
||||||||||||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
|||||||||||||
($ in millions, except per share data and ratios) |
2024 |
2023 |
% / pts Change |
|
2024 |
2023 |
% / pts Change |
|||||||||
Consolidated revenues |
$ |
16,627 |
$ |
14,497 |
|
14.7 |
% |
|
$ |
47,600 |
|
$ |
42,262 |
|
12.6 |
% |
Net income (loss) applicable to common shareholders |
|
1,161 |
|
(41 |
) |
NM |
|
|
|
2,651 |
|
|
(1,776 |
) |
NM |
|
per diluted common share (1) |
|
4.33 |
|
(0.16 |
) |
NM |
|
|
|
9.91 |
|
|
(6.76 |
) |
NM |
|
Adjusted net income (loss)* |
|
1,048 |
|
214 |
|
NM |
|
|
|
2,844 |
|
|
(1,290 |
) |
NM |
|
per diluted common share* (1) |
|
3.91 |
|
0.81 |
|
NM |
|
|
|
10.64 |
|
|
(4.91 |
) |
NM |
|
Return on Allstate common shareholders’ equity (trailing twelve months) |
|
|
|
|
|
|||||||||||
Net income (loss) applicable to common shareholders |
|
|
|
|
|
26.1 |
% |
|
(14.7 |
)% |
40.8 |
|
||||
Adjusted net income (loss)* |
|
|
|
|
|
26.1 |
% |
|
(9.7 |
)% |
35.8 |
|
||||
Common shares outstanding (in millions) |
|
|
|
|
|
264.8 |
|
|
261.7 |
|
1.2 |
% |
||||
Book value per common share |
|
|
|
|
$ |
70.35 |
|
$ |
47.79 |
|
47.2 |
% |
||||
|
|
|
|
|
|
|
|
|||||||||
Consolidated premiums written (2) |
$ |
15,872 |
$ |
14,425 |
|
10.0 |
% |
|
$ |
45,589 |
|
$ |
41,021 |
|
11.1 |
% |
Property-Liability insurance premiums earned |
|
13,694 |
|
12,270 |
|
11.6 |
% |
|
|
39,933 |
|
|
35,826 |
|
11.5 |
% |
Property-Liability combined ratio |
|
|
|
|
|
|
|
|||||||||
Recorded |
|
96.4 |
|
103.4 |
|
(7.0 |
) |
|
|
96.9 |
|
|
109.8 |
|
(12.9 |
) |
Underlying combined ratio* |
|
83.2 |
|
91.9 |
|
(8.7 |
) |
|
|
85.1 |
|
|
92.7 |
|
(7.6 |
) |
Catastrophe losses |
$ |
1,703 |
$ |
1,181 |
|
44.2 |
% |
|
$ |
4,554 |
|
$ |
5,568 |
|
(18.2 |
)% |
Total policies in force (in thousands) |
|
|
|
|
|
205,483 |
|
|
190,089 |
|
8.1 |
% |
||||
| (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) | 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 | ||
Third Quarter 2024 Results
-
Total revenues of
$16.6 billion $2.1 billion 14.7% above the prior year quarter driven by increased Property-Liability earned premium.
-
Net income applicable to common shareholders was
$1.2 billion $41 million $1.0 billion $3.91 $214 million
“Allstate’s focus on near-term performance while implementing our long-term growth plan resulted in strong financial returns and an improved strategic position,” said Tom Wilson, Allstate’s Chair, CEO and President. “Revenues increased by almost
“Progress was also made on implementing the strategy to increase market share in personal Property-Liability and expand protection solutions. Allstate Protection auto insurance new business sales increased
----------------------------------------------------------------------------------------------------------------------------------------------------------
-
Property-Liability earned premiums of
$13.7 billion 11.6% in the third quarter of 2024 compared to the prior year quarter, primarily driven by higher average premium levels. Underwriting income of$495 million $909 million $414 million
Property-Liability Results |
|||||||||||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
($ in millions) |
2024 |
2023 |
% / pts Change |
|
2024 |
2023 |
% / pts Change |
||||||||
Premiums earned |
$ |
13,694 |
$ |
12,270 |
|
11.6 |
% |
|
$ |
39,933 |
$ |
35,826 |
|
11.5 |
% |
Premiums written |
$ |
14,707 |
$ |
13,304 |
|
10.5 |
% |
|
$ |
42,169 |
$ |
37,707 |
|
11.8 |
% |
Underwriting income (loss) |
$ |
495 |
$ |
(414 |
) |
NM |
|
|
$ |
1,248 |
$ |
(3,509 |
) |
NM |
|
Recorded combined ratio |
|
96.4 |
|
103.4 |
|
(7.0 |
) |
|
|
96.9 |
|
109.8 |
|
(12.9 |
) |
Underlying combined ratio* |
|
83.2 |
|
91.9 |
|
(8.7 |
) |
|
|
85.1 |
|
92.7 |
|
(7.6 |
) |
-
Premiums written increased
10.5% compared to the prior year quarter reflecting higher premiums for both Allstate and National General brands.
- Property-Liability combined ratio was 96.4 for the quarter and 96.9 for the first nine months of 2024. This was 7.0 points and 12.9 points better than the prior year as higher average earned premiums and improved underlying loss experience more than offset increased catastrophe losses in the third quarter and advertising expenses.
- Allstate Protection auto insurance results reflect successful execution of a comprehensive plan to restore margins. Profitability improvement supported increased growth investments in rate adequate states and risk segments.
Allstate Protection Auto Results |
|||||||||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||
($ in millions, except ratios) |
2024 |
2023 |
% / pts Change |
|
2024 |
2023 |
% / pts Change |
||||||
Premiums earned |
$ |
9,270 |
$ |
8,345 |
11.1 |
% |
|
$ |
27,127 |
$ |
24,374 |
11.3 |
% |
Premiums written |
|
9,539 |
|
8,770 |
8.8 |
|
|
|
28,180 |
|
25,388 |
11.0 |
|
Policies in Force (in thousands) |
|
|
|
|
|
24,998 |
|
25,376 |
(1.5 |
) |
|||
Recorded combined ratio |
|
94.8 |
|
102.1 |
(7.3 |
) |
|
|
95.6 |
|
104.9 |
(9.3 |
) |
Underlying combined ratio* |
|
92.0 |
|
98.8 |
(6.8 |
) |
|
|
93.5 |
|
101.2 |
(7.7 |
) |
-
Earned premiums grew
11.1% compared to the prior year quarter. The increase was driven by rate increases, partially offset by a decline in policies in force of1.5% .
-
Allstate brand auto rate increases result in an annualized total brand premium impact of
2.9% in the quarter and6.3% through the first nine months of 2024. National General auto rate increases result in an annualized total brand premium impact of1.7% in the quarter and7.8% through the first nine months of 2024.
- The recorded auto insurance combined ratio of 94.8 in the third quarter of 2024 was 7.3 points lower than the prior year quarter, reflecting higher average earned premiums, improved underlying loss experience and favorable prior year reserve reestimates.
- The severity estimated for claims reported in the first two quarters of the year was reduced in the third quarter which had a favorable impact on quarterly results. Excluding this impact, the third quarter combined ratio would have been 95.6.
-
Prior year non-catastrophe reserve reestimates were favorable
$55 million
-
Allstate Protection homeowners insurance generates attractive returns and is an attractive growth opportunity. The third quarter was profitable despite a
40% increase in catastrophe losses. Premiums earned increased to$3.4 billion $1.2 billion $249 million $2.0 billion
Allstate Protection Homeowners Results |
|||||||||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||
($ in millions, except ratios) |
2024 |
2023 |
% / pts Change |
|
2024 |
2023 |
% / pts Change |
||||||
Premiums earned |
$ |
3,403 |
$ |
2,969 |
14.6 |
% |
|
$ |
9,812 |
$ |
8,662 |
13.3 |
% |
Premiums written |
|
4,073 |
|
3,525 |
15.5 |
|
|
|
10,792 |
|
9,440 |
14.3 |
|
Policies in Force (in thousands) |
|
|
|
|
|
7,483 |
|
7,297 |
2.5 |
|
|||
Recorded combined ratio |
|
98.2 |
|
104.4 |
(6.2 |
) |
|
|
97.5 |
|
122.8 |
(25.3 |
) |
Catastrophe Losses |
$ |
1,231 |
$ |
878 |
40.2 |
% |
|
$ |
3,402 |
$ |
4,516 |
(24.7 |
)% |
Underlying combined ratio* |
|
62.1 |
|
72.9 |
(10.8 |
) |
|
|
63.6 |
|
69.4 |
(5.8 |
) |
-
Earned premiums increased by
14.6% compared to the prior year quarter, primarily reflecting higher average premium and policies in force growth of2.5% .
- Policies in force growth reflects improved retention and increased new policy sales.
-
Allstate brand homeowners rate increases result in an annualized total brand premium impact of
3.1% in the quarter and7.6% through the first nine months of 2024. Implemented rate increases and inflation in insured home replacement costs resulted in a10.8% increase in homeowners insurance average gross written premium compared to the prior year quarter.
-
National General brand homeowners rate increases result in an annualized total brand premium impact of
2.2% in the quarter and6.1% through the first nine months of 2024.
-
Catastrophe losses of
$1.2 billion $353 million
- The recorded homeowners insurance combined ratio of 98.2 was 6.2 points below the third quarter of 2023 reflecting higher average earned premiums and favorable average underlying loss costs partially offset by higher catastrophe losses. The underlying combined ratio* of 62.1 decreased by 10.8 points compared to the prior year quarter.
----------------------------------------------------------------------------------------------------------------------------------------------------------
-
Protection Services provides protection solutions and services through five businesses largely by embedding Allstate branded offerings in non-insurance purchases. Revenues increased to
$822 million 17.9% higher than the prior year quarter, primarily due to Allstate Protection Plans and Arity. Adjusted net income of$58 million $31 million
Protection Services Results |
||||||||||||||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
|||||||||||||||
($ in millions) |
2024 |
2023 |
% / $ Change |
|
2024 |
2023 |
% / $ Change |
|||||||||||
Total revenues (1) |
$ |
822 |
$ |
697 |
|
|
17.9 |
% |
|
$ |
2,348 |
|
$ |
2,054 |
|
|
14.3 |
% |
Allstate Protection Plans |
|
512 |
|
416 |
|
|
23.1 |
|
|
|
1,459 |
|
|
1,200 |
|
|
21.6 |
|
Allstate Dealer Services |
|
146 |
|
146 |
|
|
— |
|
|
|
440 |
|
|
442 |
|
|
(0.5 |
) |
Allstate Roadside |
|
53 |
|
69 |
|
|
(23.2 |
) |
|
|
170 |
|
|
199 |
|
|
(14.6 |
) |
Arity |
|
74 |
|
29 |
|
|
155.2 |
|
|
|
165 |
|
|
101 |
|
|
63.4 |
|
Allstate Identity Protection |
|
37 |
|
37 |
|
|
— |
|
|
|
114 |
|
|
112 |
|
|
1.8 |
|
Adjusted net income (loss) |
$ |
58 |
$ |
27 |
|
$ |
31 |
|
|
$ |
167 |
|
$ |
102 |
|
$ |
65 |
|
Allstate Protection Plans |
|
39 |
|
20 |
|
|
19 |
|
|
|
120 |
|
|
79 |
|
|
41 |
|
Allstate Dealer Services |
|
5 |
|
5 |
|
|
— |
|
|
|
17 |
|
|
18 |
|
|
(1 |
) |
Allstate Roadside |
|
10 |
|
7 |
|
|
3 |
|
|
|
29 |
|
|
17 |
|
|
12 |
|
Arity |
|
1 |
|
(6 |
) |
|
7 |
|
|
|
(5 |
) |
|
(13 |
) |
|
8 |
|
Allstate Identity Protection |
|
3 |
|
1 |
|
|
2 |
|
|
|
6 |
|
|
1 |
|
|
5 |
|
(1) Excludes net gains and losses on investments and derivatives. |
||||||||||||||||||
-
Allstate Protection Plans continued to grow rapidly by expanding distribution relationships and protection offerings. Revenue of
$512 million $96 million 23.1% , compared to the prior year quarter driven by growth in North American and international business. Adjusted net income of$39 million $19 million
-
Allstate Dealer Services generated revenue of
$146 million $5 million
-
Allstate Roadside revenue of
$53 million 23.2% compared to the prior year quarter reflecting the discontinuance of a large unprofitable account. Adjusted net income of$10 million $3 million
-
Arity revenue of
$74 million $45 million $1 million $7 million
-
Allstate Identity Protection revenue of
$37 million $3 million $2 million
----------------------------------------------------------------------------------------------------------------------------------------------------------
- Allstate Health and Benefits
-
Divestiture of these businesses is being pursued to capture value through greater strategic alignment with acquiring companies. An agreement to sell the Employer Voluntary Benefits (EVB) business to StanCorp Financial for
$2 billion
-
Premiums and contract charges for health and benefits increased
5.2% , or$24 million $37 million $32 million
Allstate Health and Benefits Results |
|||||||||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||
($ in millions) |
2024 |
2023 |
% Change |
|
2024 |
2023 |
% Change |
||||||
Premiums and contract charges |
$ |
487 |
$ |
463 |
5.2 |
% |
|
$ |
1,439 |
$ |
1,379 |
4.4 |
% |
Employer voluntary benefits |
|
248 |
|
253 |
(2.0 |
) |
|
|
742 |
|
753 |
(1.5 |
) |
Group health |
|
120 |
|
111 |
8.1 |
|
|
|
358 |
|
328 |
9.1 |
|
Individual health |
|
119 |
|
99 |
20.2 |
|
|
|
339 |
|
298 |
13.8 |
|
Adjusted net income |
$ |
37 |
$ |
69 |
(46.4 |
) |
|
$ |
151 |
$ |
182 |
(17.0 |
)% |
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
Allstate Investments pursues a proactive approach to balancing risk and returns for the
$73.6 billion $783 million $94 million
Allstate Investment Results |
||||||||||||||||||
|
Three months ended September 30, |
|
Nine months ended September 30, |
|||||||||||||||
($ in millions, except ratios) |
|
2024 |
|
|
2023 |
|
$ / pts Change |
|
|
2024 |
|
|
2023 |
|
$ / pts Change |
|||
Net investment income |
$ |
783 |
|
$ |
689 |
|
$ |
94 |
|
|
$ |
2,259 |
|
$ |
1,874 |
|
$ |
385 |
Market-based (1) |
|
708 |
|
|
567 |
|
|
141 |
|
|
|
2,001 |
|
|
1,610 |
|
|
391 |
Performance-based (1) |
|
143 |
|
|
186 |
|
|
(43 |
) |
|
|
451 |
|
|
439 |
|
|
12 |
Net gains (losses) on investments and derivatives |
$ |
243 |
|
$ |
(86 |
) |
$ |
329 |
|
|
$ |
(24 |
) |
$ |
(223 |
) |
$ |
199 |
Change in unrealized net capital gains and losses, pre-tax |
$ |
1,677 |
|
$ |
(855 |
) |
$ |
2,532 |
|
|
$ |
1,252 |
|
$ |
(325 |
) |
$ |
1,577 |
Total return on investment portfolio (2) |
|
3.7 |
% |
|
(0.4 |
)% |
|
4.1 |
|
|
|
5.0 |
% |
|
2.1 |
% |
|
2.9 |
Total return on investment portfolio (2) (trailing twelve months) |
|
|
|
|
|
9.4 |
% |
|
4.6 |
% |
|
4.8 |
||||||
| (1) | Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses. | |
| (2) | Beginning in the third quarter of 2024, calculations include investments held for sale. |
-
Market-based investment income was
$708 million $141 million 24.9% , compared to the prior year quarter, reflecting higher yields and increased asset balances in the$63.3 billion
-
Performance-based investment income totaled
$143 million $43 million
-
Net gains on investments and derivatives were
$243 million $86 million
-
Unrealized net capital gains increased by
$1.7 billion
-
Total return on the investment portfolio was
3.7% for the third quarter of 2024 and9.4% for the latest twelve months.
Proactive Capital Management
“Allstate continues to be strongly capitalized while generating attractive returns with adjusted net income return on equity* of
Visit www.allstateinvestors.com for additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, October 31. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.
Forward-Looking Statements
This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the
THE ALLSTATE CORPORATION AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) |
|||||||
|
|
|
|
||||
($ in millions, except par value data)
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Investments |
|
|
|
||||
Fixed income securities, at fair value (amortized cost, net |
$ |
53,961 |
|
|
$ |
48,865 |
|
Equity securities, at fair value (cost |
|
2,091 |
|
|
|
2,411 |
|
Mortgage loans, net |
|
765 |
|
|
|
822 |
|
Limited partnership interests |
|
8,925 |
|
|
|
8,380 |
|
Short-term, at fair value (amortized cost |
|
6,994 |
|
|
|
5,144 |
|
Other investments, net |
|
866 |
|
|
|
1,055 |
|
Total investments |
|
73,602 |
|
|
|
66,677 |
|
Cash |
|
816 |
|
|
|
722 |
|
Premium installment receivables, net |
|
11,041 |
|
|
|
10,044 |
|
Deferred policy acquisition costs |
|
5,751 |
|
|
|
5,940 |
|
Reinsurance and indemnification recoverables, net |
|
9,013 |
|
|
|
8,809 |
|
Accrued investment income |
|
603 |
|
|
|
539 |
|
Deferred income taxes |
|
— |
|
|
|
219 |
|
Property and equipment, net |
|
714 |
|
|
|
859 |
|
Goodwill |
|
3,206 |
|
|
|
3,502 |
|
Other assets, net |
|
5,834 |
|
|
|
6,051 |
|
Assets held for sale |
|
3,163 |
|
|
|
— |
|
Total assets |
$ |
113,743 |
|
|
$ |
103,362 |
|
Liabilities |
|
|
|
||||
Reserve for property and casualty insurance claims and claims expense |
$ |
42,743 |
|
|
$ |
39,858 |
|
Reserve for future policy benefits |
|
274 |
|
|
|
1,347 |
|
Contractholder funds |
|
— |
|
|
|
888 |
|
Unearned premiums |
|
27,059 |
|
|
|
24,709 |
|
Claim payments outstanding |
|
1,727 |
|
|
|
1,353 |
|
Other liabilities and accrued expenses |
|
10,644 |
|
|
|
9,635 |
|
Debt |
|
8,083 |
|
|
|
7,942 |
|
Liabilities held for sale |
|
2,164 |
|
|
|
— |
|
Total liabilities |
|
92,905 |
|
|
|
85,732 |
|
Equity |
|
|
|
||||
Preferred stock and additional capital paid-in, |
|
2,001 |
|
|
|
2,001 |
|
Common stock, |
|
9 |
|
|
|
9 |
|
Additional capital paid-in |
|
3,987 |
|
|
|
3,854 |
|
Retained income |
|
51,635 |
|
|
|
49,716 |
|
Treasury stock, at cost (635 million and 638 million shares) |
|
(37,006 |
) |
|
|
(37,110 |
) |
Accumulated other comprehensive income (loss): |
|
|
|
||||
Unrealized net capital gains and losses |
|
361 |
|
|
|
(604 |
) |
Unrealized foreign currency translation adjustments |
|
(99 |
) |
|
|
(98 |
) |
Unamortized pension and other postretirement prior service credit |
|
12 |
|
|
|
13 |
|
Discount rate for reserve for future policy benefits |
|
(23 |
) |
|
|
(11 |
) |
Total accumulated other comprehensive income (loss) |
|
251 |
|
|
|
(700 |
) |
Total Allstate shareholders’ equity |
|
20,877 |
|
|
|
17,770 |
|
Noncontrolling interest |
|
(39 |
) |
|
|
(140 |
) |
Total equity |
|
20,838 |
|
|
|
17,630 |
|
Total liabilities and equity |
$ |
113,743 |
|
|
$ |
103,362 |
|
THE ALLSTATE CORPORATION AND SUBSIDIARIES |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
|
|
|
|
||||||||||||
($ in millions, except per share data) |
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Property and casualty insurance premiums |
$ |
14,333 |
|
|
$ |
12,839 |
|
|
$ |
41,797 |
|
|
$ |
37,482 |
|
Accident and health insurance premiums and contract charges |
|
487 |
|
|
|
463 |
|
|
|
1,439 |
|
|
|
1,379 |
|
Other revenue |
|
781 |
|
|
|
592 |
|
|
|
2,129 |
|
|
|
1,750 |
|
Net investment income |
|
783 |
|
|
|
689 |
|
|
|
2,259 |
|
|
|
1,874 |
|
Net gains (losses) on investments and derivatives |
|
243 |
|
|
|
(86 |
) |
|
|
(24 |
) |
|
|
(223 |
) |
Total revenues |
|
16,627 |
|
|
|
14,497 |
|
|
|
47,600 |
|
|
|
42,262 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses |
|
|
|
|
|
|
|
||||||||
Property and casualty insurance claims and claims expense |
|
10,409 |
|
|
|
10,237 |
|
|
|
30,711 |
|
|
|
32,290 |
|
Accident, health and other policy benefits (including remeasurement (gains) losses of |
|
317 |
|
|
|
262 |
|
|
|
904 |
|
|
|
785 |
|
Amortization of deferred policy acquisition costs |
|
2,037 |
|
|
|
1,841 |
|
|
|
5,977 |
|
|
|
5,374 |
|
Operating costs and expenses |
|
2,217 |
|
|
|
1,771 |
|
|
|
6,121 |
|
|
|
5,273 |
|
Pension and other postretirement remeasurement (gains) losses |
|
26 |
|
|
|
149 |
|
|
|
15 |
|
|
|
56 |
|
Restructuring and related charges |
|
28 |
|
|
|
87 |
|
|
|
51 |
|
|
|
141 |
|
Amortization of purchased intangibles |
|
71 |
|
|
|
83 |
|
|
|
210 |
|
|
|
246 |
|
Interest expense |
|
104 |
|
|
|
88 |
|
|
|
299 |
|
|
|
272 |
|
Total costs and expenses |
|
15,209 |
|
|
|
14,518 |
|
|
|
44,288 |
|
|
|
44,437 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations before income tax expense |
|
1,418 |
|
|
|
(21 |
) |
|
|
3,312 |
|
|
|
(2,175 |
) |
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
254 |
|
|
|
(17 |
) |
|
|
603 |
|
|
|
(475 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
1,164 |
|
|
|
(4 |
) |
|
|
2,709 |
|
|
|
(1,700 |
) |
|
|
|
|
|
|
|
|
||||||||
Less: Net (loss) income attributable to noncontrolling interest |
|
(26 |
) |
|
|
1 |
|
|
|
(30 |
) |
|
|
(23 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Allstate |
|
1,190 |
|
|
|
(5 |
) |
|
|
2,739 |
|
|
|
(1,677 |
) |
|
|
|
|
|
|
|
|
||||||||
Less: Preferred stock dividends |
|
29 |
|
|
|
36 |
|
|
|
88 |
|
|
|
99 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) applicable to common shareholders |
$ |
1,161 |
|
|
$ |
(41 |
) |
|
$ |
2,651 |
|
|
$ |
(1,776 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings per common share: |
|
|
|
|
|
|
|
||||||||
Net income (loss) applicable to common shareholders per common share - Basic |
$ |
4.39 |
|
|
$ |
(0.16 |
) |
|
$ |
10.04 |
|
|
$ |
(6.76 |
) |
Weighted average common shares - Basic |
|
264.6 |
|
|
|
261.8 |
|
|
|
264.1 |
|
|
|
262.6 |
|
Net income (loss) applicable to common shareholders per common share - Diluted |
$ |
4.33 |
|
|
$ |
(0.16 |
) |
|
$ |
9.91 |
|
|
$ |
(6.76 |
) |
Weighted average common shares - Diluted |
|
268.0 |
|
|
|
261.8 |
|
|
|
267.4 |
|
|
|
262.6 |
|
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 September 30, |
||||||||||||||
|
Consolidated |
|
Per diluted common share |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) applicable to common shareholders (1) |
$ |
1,161 |
|
|
$ |
(41 |
) |
|
$ |
4.33 |
|
|
$ |
(0.16 |
) |
Net (gains) losses on investments and derivatives |
|
(243 |
) |
|
|
86 |
|
|
|
(0.91 |
) |
|
|
0.33 |
|
Pension and other postretirement remeasurement (gains) losses |
|
26 |
|
|
|
149 |
|
|
|
0.10 |
|
|
|
0.57 |
|
Amortization of purchased intangibles |
|
71 |
|
|
|
83 |
|
|
|
0.26 |
|
|
|
0.31 |
|
(Gain) loss on disposition |
|
(1 |
) |
|
|
5 |
|
|
|
— |
|
|
|
0.02 |
|
Income tax expense (benefit) |
|
34 |
|
|
|
(68 |
) |
|
|
0.13 |
|
|
|
(0.26 |
) |
Adjusted net income (loss) * |
$ |
1,048 |
|
|
$ |
214 |
|
|
$ |
3.91 |
|
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) |
|
|
|
|
|
— |
|
|
|
1.5 |
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Nine months ended September 30, |
||||||||||||||
|
Consolidated |
|
Per diluted common share |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) applicable to common shareholders (1) |
$ |
2,651 |
|
|
$ |
(1,776 |
) |
|
$ |
9.91 |
|
|
$ |
(6.76 |
) |
Net (gains) losses on investments and derivatives |
|
24 |
|
|
|
223 |
|
|
|
0.09 |
|
|
|
0.85 |
|
Pension and other postretirement remeasurement (gains) losses |
|
15 |
|
|
|
56 |
|
|
|
0.06 |
|
|
|
0.21 |
|
Amortization of purchased intangibles |
|
210 |
|
|
|
246 |
|
|
|
0.79 |
|
|
|
0.94 |
|
(Gain) loss on disposition |
|
(6 |
) |
|
|
4 |
|
|
|
(0.02 |
) |
|
|
0.02 |
|
Non-recurring costs (2) |
|
— |
|
|
|
90 |
|
|
|
— |
|
|
|
0.34 |
|
Income tax expense (benefit) |
|
(50 |
) |
|
|
(133 |
) |
|
|
(0.19 |
) |
|
|
(0.51 |
) |
Adjusted net income (loss) * (1) |
$ |
2,844 |
|
|
$ |
(1,290 |
) |
|
$ |
10.64 |
|
|
$ |
(4.91 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) |
|
|
|
|
|
— |
|
|
|
1.9 |
|||||
| _____________ | ||
| (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 September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Return on Allstate common shareholders’ equity |
|
|
|
||||
Numerator: |
|
|
|
||||
Net income (loss) applicable to common shareholders |
$ |
4,111 |
|
|
$ |
(2,079 |
) |
Denominator: |
|
|
|
||||
Beginning Allstate common shareholders’ equity |
$ |
12,592 |
|
|
$ |
15,713 |
|
Ending Allstate common shareholders’ equity (1) |
|
18,876 |
|
|
|
12,592 |
|
Average Allstate common shareholders’ equity |
$ |
15,734 |
|
|
$ |
14,153 |
|
Return on Allstate common shareholders’ equity |
|
26.1 |
% |
|
|
(14.7 |
)% |
($ in millions) |
For the twelve months ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Adjusted net income (loss) return on Allstate common shareholders’ equity |
|
|
|
||||
Numerator: |
|
|
|
||||
Adjusted net income (loss) * |
$ |
4,385 |
|
|
$ |
(1,641 |
) |
|
|
|
|
||||
Denominator: |
|
|
|
||||
Beginning Allstate common shareholders’ equity |
$ |
12,592 |
|
|
$ |
15,713 |
|
Less: Unrealized net capital gains and losses |
|
(2,512 |
) |
|
|
(2,929 |
) |
Adjusted beginning Allstate common shareholders’ equity |
|
15,104 |
|
|
|
18,642 |
|
|
|
|
|
||||
Ending Allstate common shareholders’ equity (1) |
|
18,876 |
|
|
|
12,592 |
|
Less: Unrealized net capital gains and losses |
|
361 |
|
|
|
(2,512 |
) |
Adjusted ending Allstate common shareholders’ equity |
|
18,515 |
|
|
|
15,104 |
|
Average adjusted Allstate common shareholders’ equity |
$ |
16,810 |
|
|
$ |
16,873 |
|
Adjusted net income (loss) return on Allstate common shareholders’ equity * |
|
26.1 |
% |
|
|
(9.7 |
)% |
| _____________ | ||
(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 September 30, |
|
Nine months ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Combined ratio |
96.4 |
|
|
103.4 |
|
|
96.9 |
|
|
109.8 |
|
Effect of catastrophe losses |
(12.4 |
) |
|
(9.6 |
) |
|
(11.4 |
) |
|
(15.5 |
) |
Effect of prior year non-catastrophe reserve reestimates |
(0.4 |
) |
|
(1.4 |
) |
|
— |
|
|
(1.1 |
) |
Effect of amortization of purchased intangibles |
(0.4 |
) |
|
(0.5 |
) |
|
(0.4 |
) |
|
(0.5 |
) |
Underlying combined ratio* |
83.2 |
|
|
91.9 |
|
|
85.1 |
|
|
92.7 |
|
|
|
|
|
|
|
|
|
||||
Effect of prior year catastrophe reserve reestimates |
(0.1 |
) |
|
0.1 |
|
|
(0.8 |
) |
|
— |
|
Allstate Protection - Auto Insurance |
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Combined ratio |
94.8 |
|
|
102.1 |
|
|
95.6 |
|
|
104.9 |
|
Effect of catastrophe losses |
(3.0 |
) |
|
(2.6 |
) |
|
(2.7 |
) |
|
(2.7 |
) |
Effect of prior year non-catastrophe reserve reestimates |
0.6 |
|
|
(0.3 |
) |
|
1.0 |
|
|
(0.5 |
) |
Effect of amortization of purchased intangibles |
(0.4 |
) |
|
(0.4 |
) |
|
(0.4 |
) |
|
(0.5 |
) |
Underlying combined ratio* |
92.0 |
|
|
98.8 |
|
|
93.5 |
|
|
101.2 |
|
|
|
|
|
|
|
|
|
||||
Effect of prior year catastrophe reserve reestimates |
(0.1 |
) |
|
0.1 |
|
|
(0.1 |
) |
|
(0.1 |
) |
Allstate Protection - Homeowners Insurance |
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Combined ratio |
98.2 |
|
|
104.4 |
|
|
97.5 |
|
|
122.8 |
|
Effect of catastrophe losses |
(36.2 |
) |
|
(29.6 |
) |
|
(34.7 |
) |
|
(52.1 |
) |
Effect of prior year non-catastrophe reserve reestimates |
0.4 |
|
|
(1.5 |
) |
|
1.1 |
|
|
(0.9 |
) |
Effect of amortization of purchased intangibles |
(0.3 |
) |
|
(0.4 |
) |
|
(0.3 |
) |
|
(0.4 |
) |
Underlying combined ratio* |
62.1 |
|
|
72.9 |
|
|
63.6 |
|
|
69.4 |
|
|
|
|
|
|
|
|
|
||||
Effect of prior year catastrophe reserve reestimates |
— |
|
|
0.6 |
|
|
(2.8 |
) |
|
0.7 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030167165/en/
Nick Nottoli
Media Relations
(847) 402-5600
Allister Gobin
Investor Relations
(847) 402-2800
Source: The Allstate Corporation
FAQ
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