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Mar 31, 2023
Allstate Q1 2023 Earnings Report
Allstate's financial performance for Q1 2023 was marked by revenue growth offset by underwriting losses, driven by increased catastrophe losses and rising auto loss costs.
Key Takeaways
Allstate reported a net loss of $346 million for Q1 2023, compared to a net income of $634 million in the prior year quarter. Total revenues increased by 11.8% to $13.8 billion, driven by higher property-liability earned premiums and net gains on investments. The underwriting loss of $1.0 billion was primarily due to higher catastrophe losses and increased auto loss costs.
Total revenues increased by 11.8% to $13.8 billion, driven by a 10.8% increase in Property-Liability earned premium and net gains on investments and derivatives.
Net loss applicable to common shareholders was $346 million, compared to income of $634 million in the prior year quarter, driven by an underwriting loss primarily due to higher catastrophe losses.
Property-Liability earned premium increased by 10.8%, driven primarily by higher average premiums.
Protection Services revenues increased by 7.0% to $671 million, primarily due to Allstate Protection Plans and Allstate Dealer Services.
Revenue by Segment
Forward Guidance
Allstate is focused on transformative growth, including a new auto insurance product, expense reductions, distribution transformation, and expansion of Protection Plans and Health and Benefits.
Positive Outlook
- New auto insurance product designed to be affordable, simple, and connected, available to about one-third of the U.S. market in 2023.
- Expense reductions partially offsetting current increases in claims severity.
- Higher Allstate exclusive agent productivity.
- Expanded product offerings through independent agents.
- Enhanced direct capabilities.
Challenges Ahead
- Auto loss costs continue to increase rapidly.
- High first quarter catastrophe losses.
- Profitability actions negatively impacted Allstate brand new issued applications and retention.
- Reductions in insurance client advertising.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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