In This Article:
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Total Revenue: $16.5 billion in Q4, up 11.3% year-over-year.
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Net Income: $1.9 billion in Q4; $4.6 billion for the full year 2024.
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Adjusted Net Income Return on Equity: 26.8% over the last 12 months.
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Property-Liability Earned Premiums: Up 10.6% in Q4 and 11.2% for the full year.
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Net Investment Income: Up 37.9% year-over-year in Q4.
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Property-Liability Underwriting Income: $1.8 billion in Q4, improved by $507 million year-over-year.
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Auto Insurance Underwriting Income: $603 million in Q4, improved by $510 million year-over-year.
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Homeowners Insurance Underwriting Income: $1.1 billion in Q4, $99 million lower due to increased catastrophe losses.
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Combined Ratio: Total Property-Liability combined ratio of 86.9% in Q4, a 2.6 point improvement year-over-year.
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Auto Insurance Combined Ratio: 93.5 in Q4, 5.4 points below the prior year quarter.
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Homeowners Insurance Combined Ratio: 90.1% for the full year 2024.
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Protection Plans Revenue: $528 million in Q4, up 20.3% year-over-year.
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Protection Plans Adjusted Net Income: $37 million in Q4, consistent with the prior year quarter.
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Proceeds from Sale of Group Health and Employee Voluntary Benefits: Expected $3.25 billion.
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Policies in Force: Increased to 237.3 million.
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Homeowners Insurance Policies in Force Growth: 2.4% increase in 2024.
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Auto Insurance Policies in Force: Declined by 1.4%.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Allstate Corp (NYSE:ALL) reported a significant increase in total revenues, reaching $16.5 billion in the fourth quarter, up 11.3% compared to the prior year quarter.
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The company achieved a strong adjusted net income return on equity of 26.8% over the last 12 months.
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Successful execution of the auto profit improvement plan resulted in a substantial increase in auto insurance underwriting income, improving by $510 million compared to the prior year quarter.
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Homeowners insurance produced attractive returns with a combined ratio of 90.1% for the full year 2024, in line with the company's low 90s target.
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The sale of group health and employee voluntary benefits businesses is expected to generate $3.25 billion in proceeds, representing attractive valuation multiples.
Negative Points
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Increased catastrophe losses led to a $99 million decrease in homeowners insurance underwriting income compared to the prior year quarter.
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Auto insurance policies in force declined by 1.4% due to a decrease in customer retention, particularly in states with large recent rate increases.
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The California wildfires resulted in estimated gross losses of $2 billion, with net losses expected to be $1.1 billion after reinsurance recoveries.
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Retention has been adversely impacted by significant rate increases over the past few years, particularly in states like New York and New Jersey.
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Despite strong new business trends, overall auto units declined year-over-year due to retention challenges.