The Allstate Corporation (ALL) Q2 2024 earnings summary

Executive summary

• Net income applicable to common shareholders was $301 million for Q2 2024, reversing a $1.4 billion loss in Q2 2023, driven by improved underwriting, higher premiums, and strong growth in National General and Protection Plans.

• Revenues increased 12.4% year-over-year to $15.7 billion, fueled by higher property-liability premiums and net investment income.

• Adjusted net income was $429 million, or $1.61 per diluted share, compared to an adjusted net loss of $1.2 billion last year.

• Return on common shareholders' equity for the trailing twelve months was 19.3%, up from -17.2% a year ago.

• Strategic focus remains on expanding market share, leveraging multi-channel distribution, and executing a transformative growth plan.

Financial highlights

• Property-Liability earned premiums rose 11.9% to $13.3 billion, with underwriting loss improving by $1.9 billion year-over-year.

• Catastrophe losses were $2.1 billion, down $573 million from the prior year quarter.

• Net investment income increased nearly 17% year-over-year to $712 million.

• Protection Services revenue grew 12.7% to $773 million, led by Allstate Protection Plans (+21.1%).

• Book value per common share increased 21.2% year-over-year to $62.14.

Outlook and guidance

• Growth investments are being accelerated in states with attractive returns, with continued focus on profitability and market share expansion.

• The company expects to continue investing in advertising, technology, and digital capabilities to drive growth.

• The Health and Benefits business divestiture process is ongoing, with announcements expected later in the year.

• Management expects to continue targeted rate increases in underperforming states and lines, and to support growth by removing underwriting restrictions as auto profitability improves.

• Transformative Growth plan and broad protection offerings are expected to drive further shareholder value.