Allstate Q4 2024 Earnings Report
Key Takeaways
Allstate's Q4 2024 revenues reached $16.5 billion, a 11.3% increase year-over-year, with net income at $1.9 billion, up 30.1% from the prior year quarter. The adjusted net income was $2.1 billion, or $7.67 per diluted share. The Property-Liability combined ratio improved to 86.9, contributing to the strong financial performance.
Total revenues increased by 11.3% to $16.5 billion, driven by growth in premiums and other revenue sources.
Net income applicable to common shareholders rose to $1.9 billion, reflecting improved Property-Liability underwriting results.
The Property-Liability combined ratio improved to 86.9, driven by higher average earned premiums and improved loss experience.
Protection Services revenues increased by 23.6% to $889 million, led by Allstate Protection Plans and Arity.
Allstate
Allstate
Forward Guidance
Allstate anticipates growth in Property-Liability policies in force during 2025 as auto insurance policy renewal rates improve and new business increases.
Positive Outlook
- Continued growth in Property-Liability policies in force is expected.
- Auto insurance policy renewal rates are anticipated to improve.
- New business is expected to increase.
- The Individual Health business has attractive growth prospects.
- Allstate remains committed to managing capital and enterprise risk and return to benefit shareholders.
Challenges Ahead
- Catastrophe losses can cause loss trends to vary significantly between periods.
- Prior year reserve reestimates are caused by unexpected loss development on historical reserves, which could increase or decrease current year net income.
- The portfolio allocation to performance-based assets provides a diversifying source of higher long-term returns, and volatility in reported results is expected.
- Higher interest rates resulted in lower fixed income valuations.
- Return on equity will be slightly lower.