The Allstate Corporation (ALL) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenues reached $16.5 billion, up 11.3% year-over-year, with net income of $1.9 billion for the quarter and $4.6 billion for the full year, reversing a loss in 2023.

• Adjusted net income return on equity was 26.8% for the last 12 months, reflecting strong underwriting and investment results.

• Strategic divestitures of group health and employee voluntary benefits businesses are expected to generate $3.25 billion in proceeds and a $1 billion book gain.

• Transformative growth initiatives and digital transformation improved expense ratios, expanded product offerings, and increased distribution productivity.

• Expansion of Protection Services and growth in Property-Liability market share were key strategic initiatives.

Financial highlights

• Full-year revenues rose to $64.1 billion, with property-liability earned premiums up 11.2% and net investment income up nearly 25%.

• Adjusted net income per share was $7.67 in Q4, up 31.8% year-over-year.

• Property-liability underwriting income for Q4 was $1.8 billion, up $507 million year-over-year.

• Book value per common share increased 21.8% year-over-year to $72.35.

• Protection plans revenue grew 20.3% in Q4 to $528 million, with adjusted net income of $37 million.

Outlook and guidance

• Focus for 2025 is on growing property-liability policies in force by improving retention and new business sales.

• Proceeds from divestitures expected to close in 2025, enhancing capital flexibility.

• Continued investment in marketing, technology, and product rollout to drive profitable growth.