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Dec 31, 2022
Allstate Q4 2022 Earnings Report
Allstate experienced a net loss due to auto insurance underwriting losses, but revenues increased driven by Property-Liability premiums growth.
Key Takeaways
Allstate reported a net loss of $310 million in Q4 2022, impacted by auto insurance underwriting losses. Revenues increased to $13.6 billion, driven by a 9.5% growth in Property-Liability premiums. The company is implementing a plan to improve auto insurance margins and continues to execute its Transformative Growth strategy.
Net loss of $310 million in the fourth quarter, impacted by auto insurance underwriting losses.
Revenues increased to $13.6 billion, driven by 9.5% growth in Property-Liability premiums.
Comprehensive plan being implemented to improve auto insurance margins.
Transformative Growth strategy execution continues to increase shareholder value.
Allstate
Allstate
Forward Guidance
Allstate is focused on restoring auto profitability and executing its Transformative Growth strategy to increase shareholder value. This includes increasing average premiums, reducing expenses, and launching new products.
Positive Outlook
- Continued pursuit of rate increases and underwriting actions to improve auto insurance profitability.
- Expansion of affordable, simple, and connected auto insurance product to more states in 2023.
- Leveraging expertise in data and analytics for a differentiated direct-to-consumer experience.
- Proactive risk and return management of the investment portfolio.
- Capital management actions to benefit shareholders through dividends and share repurchases.
Challenges Ahead
- Auto insurance underwriting losses negatively impacting results.
- Higher auto insurance prices not sufficient to overcome increased loss costs and reserve increases.
- Increased claims severity and higher unfavorable prior year reserve reestimates.
- Increased catastrophe losses.
- Lower performance-based investment income.