The Allstate Corporation (ALL) Q4 2023 earnings summary

Executive summary

• Q4 net income was $1.460B, or $5.52 per diluted share, versus a $303M loss YoY; adjusted net income was $1.541B, or $5.82 per share.

• Improved Property-Liability underwriting, mild weather and market-based investment income supported the quarter; written premiums rose 10.1% to $12.6B.

Financial highlights

• Q4 revenue rose 8.7% YoY to $14.832B, including Property-Liability premiums of $12.601B, up 10.7%, and net investment income of $604M.

• FY 2023 revenue increased 11.1% to $57.094B; net loss applicable to common shareholders was $316M versus a $1.394B loss in 2022, while adjusted net income was $251M versus an adjusted loss of $239M.

• Investment portfolio total return was 4.6% in Q4 and 6.7% for FY 2023.

Outlook and guidance

• Continue rate increases where rates remain inadequate to keep pace with loss trends and improve margins; 2024 pricing actions target improved auto margins in 10 states.

• Digitization, sourcing and distribution efficiencies are expected to support costs; advertising investment will increase as underwriting restrictions are unwound with improved rate adequacy.

• Transformative Growth priorities include broader customer access, improved acquisition economics, technology ecosystems, new operating models and profitable growth.