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Sep 30, 2023

Allstate Q3 2023 Earnings Report

Allstate's Q3 2023 financial performance was marked by improved profitability and progress in its growth strategy.

Key Takeaways

Allstate reported adjusted net income of $214 million, driven by improved underwriting performance, strong investment income, and profits from Protection Services and Health and Benefits. The Property-Liability underlying combined ratio improved, but the company faced an underwriting loss due to increased auto insurance loss costs, elevated catastrophe losses, and adverse prior year loss development. Allstate is pursuing the sale of its Health and Benefits businesses and is focused on increasing property-liability market share.

Adjusted net income was $214 million, or $0.81 per diluted share.

Property-Liability earned premium grew by 10.0%.

The Property-Liability underlying combined ratio improved to 91.9.

Total revenues increased by 9.8% to $14.5 billion.

Total Revenue
$14.5B
Previous year: $12B
+20.4%
EPS
$0.81
Previous year: -$1.56
-151.9%
Property-Liability Combined Ratio
103.4%
Previous year: 111.6%
-7.3%
Gross Profit
$13.2B
Previous year: $11.3B
+16.7%
Cash and Equivalents
$860M
Previous year: $786M
+9.4%
Free Cash Flow
$1.18B
Previous year: $1.92B
-38.7%
Total Assets
$92.1B
Previous year: $97.7B
-5.7%

Allstate

Allstate

Forward Guidance

Allstate is proactively managing capital and is confident that strategic actions will result in profitable growth and attractive shareholder returns.

Positive Outlook

  • Comprehensive profit improvement plan is in progress.
  • Strategic actions are expected to lead to profitable growth.
  • Attractive shareholder returns are anticipated.
  • Financial flexibility to navigate the operating environment.
  • Capital resources are available to invest in growth.

Challenges Ahead

  • Challenging operating environment.
  • Unspecified uncertainties.
  • Reliance on estimates, assumptions, and plans.
  • Potential for inaccurate estimates, assumptions, or plans.
  • Risk of actual results differing materially from forward-looking statements.