The Allstate Corporation ALL reported a fourth-quarter 2024 adjusted net income of $7.67 per share, which outpaced the Zacks Consensus Estimate by 17.8%. The bottom line increased nearly 32% year over year.
Operating revenues advanced 12.1% year over year to $16.71 billion but missed the consensus mark by a whisker.
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The strong fourth-quarter earnings benefited from growth in premiums and improved underwriting income and investment income. However, the upside was partly offset by elevated catastrophe losses and increased costs and expenses.
ALL’s 2024 Figures
Allstate’s 2024 operating revenues of $64.33 billion increased from $57.39 billion a year ago and marginally beat the estimates. Full-year adjusted net income of $18.32 per share surged from 95 cents a year ago and comfortably beat the consensus estimate of $16.96 per share. Full-year Cat Loss of almost $5 billion declined 11.9% year over year.
The Allstate Corporation Price, Consensus and EPS Surprise
The Allstate Corporation Price, Consensus and EPS Surprise
The Allstate Corporation price-consensus-eps-surprise-chart | The Allstate Corporation Quote
Key Takeaways From Allstate’s Q4 Results
Consolidated premiums written of $15.06 billion improved 8.8% year over year.
Net investment income was $833 million, which rose 46.2% year over year, resulting from repositioning into higher-yielding fixed-income securities, growing portfolio and improved performance-based results. The metric surpassed the Zacks Consensus Estimate of $754 million. Both market-based and performance-based investment income witnessed significant jumps in the quarter under review.
Total costs and expenses escalated 8.1% year over year to $14 billion but were lower than our estimate of $14.7 billion. The year-over-year rise was due to increased property and casualty insurance claims and claims expenses, and operating costs and expenses. Catastrophe losses escalated to $410 million from $68 million a year ago.
Allstate’s pretax income was $2.4 billion in the fourth quarter, up from the year-ago figure of $1.8 billion.
As of Dec. 31, 2024, total policies in force were 208.3 million, which grew 7.2% year over year.
ALL’s Segmental Performances
The Property-Liability segment’s premiums earned advanced 10.6% year over year to $13.9 billion, attributable to rate hikes. Yet, the metric fell short of the Zacks Consensus Estimate by 0.5%. Underwriting income in the unit amounted to $1.8 billion compared with the prior-year quarter’s figure of $1.3 billion. The underlying combined ratio improved 390 basis points year over year to 83%.
The Protection Services segment recorded revenues of $889 million, which advanced 23.6% year over year, aided by Allstate Protection Plans and Arity businesses. Adjusted net income surged to $50 million from $4 million a year ago.
The Allstate Health and Benefits segment’s premium and contract charges improved 3.2% year over year to $482 million and beat the Zacks Consensus Estimate by 1.6%. Adjusted net income of $35 million dropped 41.7% year over year. The segment includes Employer voluntary benefits, Group health and Individual health businesses. Last August, it agreed to sell its Employer voluntary benefits businessto StanCorp Financial for $2 billion. It recently agreed to divest the Group health business as well to Nationwide for $1.25 billion in cash. The Individual health business will either be retained or divested in the coming days.
Financial Update (as of Dec. 31, 2024)
Allstate exited the fourth quarter with a cash balance of $704 million, which fell from the 2024-end level of $722 million. Total assets of $111.6 billion increased from the $103.4 billion figure at 2024-end.
Debt amounted to $8.09 billion, which inched up from the $7.94 billion figure as of Dec. 31, 2024.
Total equity of $21.4 billion advanced from the 2024-end level of $17.6 billion.
Book value per common share was $72.35 as of Dec. 31, 2025, which climbed 21.8% year over year.
ALL’s 2025 View
The company expects total Property-Liability policies in force to increase this year as auto insurance policy renewal rates improve and new business continues to grow.
Allstate currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Report From Other Insurers – AON, WTW &MMC
Aon plc AON reported fourth-quarter 2024 adjusted earnings of $4.42 per share, which surpassed the Zacks Consensus Estimate by 4.3%, supported by new business growth and solid retention rates in Aon’s solution lines. Its Risk Capital and Human Capital segments gained from organic revenue growth, NFP acquisition synergies and net restructuring savings. However, the upside was partially offset by escalating operating costs.
Willis Towers Watson Public Limited Company WTW delivered fourth-quarter 2024 adjusted earnings of $8.13 per share, which beat the Zacks Consensus Estimate by 1.5% thanks to an increase in revenues and expanded operating margins at the Health, Wealth & Career and Risk & Broking segments. The reduced expenses also added to the upside.
Marsh & McLennan Companies, Inc. MMC reported fourth-quarter 2024 adjusted earnings per share of $1.87, which beat the Zacks Consensus Estimate by 6.9% on the back ofstrong United States/Canada and International operations in the Marsh Unit within the Risk and Insurance Services segment. Higher profits from its consulting business also acted as a tailwind. The upside was partly offset by an overall elevated expense level.
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