The Allstate Corporation (ALL) Q3 2024 earnings summary

Executive summary

• Total revenues rose 14.7% year-over-year to $16.6 billion in Q3 2024, with net income of $1.2 billion and adjusted net income of $3.91 per share, reflecting strong operational execution and improved margins.

• Return on equity reached 26.1% over the last twelve months, up significantly from the prior year.

• Auto profit improvement plan restored margins, while homeowners and protection plans delivered strong returns and growth despite higher catastrophe losses.

• Strategic initiatives included increased auto new business sales, expansion of customer protection offerings, and the acquisition of Kingfisher to enhance mobile device protection.

Financial highlights

• Property-Liability earned premiums rose 11.6% to $13.7 billion in Q3, with underwriting income improving by $909 million year-over-year to $495 million.

• Net investment income was $783 million, up 13.6% year-over-year, benefiting from higher yields and portfolio growth.

• Book value per common share increased 47.2% year-over-year to $70.35 as of September 30, 2024.

• Protection Plans revenue increased 23.1% to $512 million, with adjusted net income up $19 million to $39 million.

• Allstate shareholders' equity rose to $20.88 billion, up from $17.77 billion at year-end.

Outlook and guidance

• The sale of the Employer Voluntary Benefits business for $2 billion is expected to close in the first half of 2025, generating ~$1.6–$1.7 billion in after-tax proceeds.

• Strategic investments in new products, advertising, and expanded distribution are expected to drive future market share gains.

• Operational excellence and growth strategy implementation are expected to continue creating shareholder value.