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Dec 31, 2023
Allstate Q4 2023 Earnings Report
Allstate reported strong profitability in Q4 2023, driven by improved auto profitability and mild weather conditions.
Key Takeaways
Allstate's Q4 2023 results showed a significant turnaround with a net income of $1.5 billion, compared to a loss in the prior year quarter. This was driven by improved underwriting performance and higher investment income, resulting in adjusted net income of $1.5 billion, or $5.82 per diluted common share. Property-Liability written premiums increased, and the combined ratio improved significantly.
Net income reached $1.5 billion, a substantial improvement from the prior year's loss, attributed to better auto profitability and favorable weather.
Adjusted net income was $1.5 billion, or $5.82 per diluted common share, driven by enhanced underwriting performance and increased investment income.
Property-Liability written premiums grew to $12.6 billion, reflecting a 10.1% increase year-over-year, boosted by rate increases in auto and home insurance and policy growth at National General.
The Property-Liability combined ratio improved to 89.5, indicating stronger underwriting profitability.
Allstate
Allstate
Allstate Revenue by Segment
Revenue by Segment
Allstate Prot. Plans Revenue
CapyFin.comDealer Services Revenue
CapyFin.comRoadside Services Revenue
CapyFin.comArity Revenue
CapyFin.comIdentity Protection Revenue
CapyFin.comHealth & Benefits Revenue
CapyFin.com Forward Guidance
Allstate is focused on improving profitability and generating long-term profitable growth through strategic actions and a comprehensive profit improvement plan.
Positive Outlook
- Continued implementation of rate increases to keep pace with loss trends and improve margins.
- Expansion of customer access and leveraging technology to generate higher growth.
- Focus on increasing Allstate exclusive agent bundling and productivity.
- Growth through independent agents via National General's distribution capacity and broader product portfolio.
- Broadening protection solutions in the U.S. and through international growth via Allstate Protection Plans.
Challenges Ahead
- Inflation in loss costs impacting auto insurance results.
- Decline in policies in force due to profitability actions in personal auto and commercial lines in some states.
- Historically elevated claim severity levels.
- Lower valuation increases and less income from the sale of underlying investments in performance-based investment income.
- Potential for adverse reserve development related to claims in litigation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income