The Allstate Corporation (ALL) Q3 2024 earnings summary

Executive summary

• Third quarter 2024 revenues rose 14.7% year-over-year to $16.6 billion, with net income of $1.2 billion and adjusted net income of $3.91 per share, reflecting strong operational execution and margin recovery in auto and homeowners segments.

• Return on equity reached 26.1% over the last twelve months, up significantly from the prior year, driven by improved underwriting and investment income.

• Strategic initiatives included increased auto new business sales, the acquisition of Kingfisher to expand mobile device protection, and the planned sale of the Employer Voluntary Benefits business for $2 billion.

• Strong auto and homeowners underwriting supported results despite higher catastrophe losses.

• Protection Plans and investment portfolio delivered profitable growth, supporting overall results.

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% from the prior year, benefiting from higher yields and asset balances.

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

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

• Total policies in force increased 8.1% year-over-year to 205,483,000.

Outlook and guidance

• The divestiture of the Employer Voluntary Benefits business is expected to close in the first half of 2025, with a gain recognized at closing and capital supporting strategic initiatives.

• Lower rate increases in auto insurance are expected to improve customer retention, while homeowners and Protection Plans are anticipated to remain growth drivers.

• The company continues to review other Health and Benefits businesses for potential sale.

• Strategic focus remains on organic growth, transformative investments, and expanding distribution channels.