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Dec 31, 2024
Allstate Q4 2024 Earnings Report
Allstate reported strong financial results for the fourth quarter of 2024, with significant increases in revenue, net income, and adjusted net income, driven by improved underwriting results and investment income.
Key Takeaways
Allstate Corporation delivered an excellent fourth quarter in 2024, with total revenues reaching $16.51 billion, an 11.3% increase from the prior year. Net income applicable to common shareholders surged to $1.90 billion, a 30.1% increase, and adjusted net income rose to $2.06 billion, up 33.8%. These strong results were primarily driven by improved Property-Liability underwriting performance and higher investment income.
Total revenues for Q4 2024 increased by 11.3% to $16.51 billion compared to the prior year quarter.
Net income applicable to common shareholders rose by 30.1% to $1.90 billion in Q4 2024.
Adjusted net income for Q4 2024 increased by 33.8% to $2.06 billion, or $7.67 per diluted share.
The Property-Liability combined ratio improved by 2.6 points to 86.9, reflecting better underwriting results.
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 positioned for continued growth and shareholder value creation, with strategic initiatives focused on market share expansion, Protection Services growth, and divestiture of non-core businesses.
Positive Outlook
- Total Property-Liability policies in force are expected to grow in 2025 as auto insurance policy renewal rates improve and new business continues to increase.
- Protection Plans revenues reached nearly $2.0 billion for the year, increasing policies in force by 60% since 2019 to 160 million.
- The sale of Employer Voluntary Benefits and Group Health businesses for $3.25 billion is expected to generate a financial book gain of approximately $1.0 billion in 2025.
- The Individual Health business, with adjusted net income of $30 million in 2024, has attractive growth prospects and will either be retained or divested.
- Allstate remains committed to managing capital and enterprise risk and return to benefit shareholders.
Challenges Ahead
- The financial operating results of the Group Health business will continue to be reported as part of net income until sold, which may impact reported figures.
- While return on equity will be slightly lower due to the divestitures, the capital can support additional growth.
- The company continues to face challenges from catastrophe losses, as evidenced by the significant increase in Q4 2024.
- The recorded auto insurance combined ratio, while improved, still reflects ongoing efforts to restore margins.
- The exit from a large unprofitable customer relationship in Allstate Roadside Services indicates ongoing portfolio optimization that may impact revenue in the short term.