The Allstate Corporation (NYSE: ALL) today reported financial
results for the first quarter of 2024.
The Allstate Corporation
Consolidated Highlights
Three months ended March
31,
($ in millions, except per share data
and ratios)
2024
2023
% / pts Change
Consolidated revenues
$
15,259
$
13,786
10.7
%
Net income (loss) applicable to common
shareholders
1,189
(346
)
NM
per diluted common share (1)
4.46
(1.31
)
NM
Adjusted net income (loss)*
1,367
(342
)
NM
per diluted common share* (1)
5.13
(1.30
)
NM
Return on Allstate common shareholders’
equity (trailing twelve months)
Net income (loss) applicable to common
shareholders
7.6
%
(13.0
)%
20.6
Adjusted net income (loss)*
11.3
%
(6.7
)%
18.0
Common shares outstanding (in
millions)
263.9
263.1
0.3
%
Book value per common share
$
62.27
$
58.65
6.2
%
Consolidated premiums written
(2)
$
14,288
$
12,865
11.1
Property-Liability insurance premiums
earned
12,900
11,635
10.9
Property-Liability combined
ratio
Recorded
93.0
108.6
(15.6
)
Underlying combined ratio*
86.9
93.3
(6.4
)
Catastrophe losses
$
731
$
1,691
(56.8
)%
Total policies in force (in
thousands)
197,326
186,726
5.7
(1)
In periods where a net loss or adjusted
net loss is reported, weighted average shares for basic earnings
per share is used for calculating diluted earnings per share
because all dilutive potential common shares are anti-dilutive and
are therefore excluded from the calculation.
(2)
Includes premiums and contract charges for
the Health and Benefits segment.
*
Measures used in this release that are not
based on accounting principles generally accepted in the United
States of America (“non-GAAP”) are denoted with an asterisk and
defined and reconciled to the most directly comparable GAAP measure
in the “Definitions of Non-GAAP Measures” section of this
document.
NM = not meaningful
“Allstate’s broad-based profitability reflects the benefits of
strong operating capabilities, decisive actions to improve
shareholder value and lower catastrophe losses,” said Tom Wilson,
Chair, President and CEO of The Allstate Corporation. “Auto
profitability was enhanced as a growing number of states achieved
targeted margin levels in the quarter. Industry leading home
insurance capabilities, when combined with lower catastrophe
losses, further improved profitability. Investment income increased
primarily due to higher yields and extension of fixed income
maturities over the last 18 months. Revenues reached $15.3 billion
for the quarter, increasing 10.7% compared to the prior year. Net
income was $1.2 billion with adjusted net income* of $5.13 per
diluted common share.”
“Allstate’s results support accelerated execution of the
strategy to increase auto and home insurance market share and
broaden protection provided to customers. Attractive auto insurance
margins supported a significant increase in Allstate brand
advertising, resulting in greater new business through Allstate
agents and direct operations. National General increased policy
growth through independent agents. Progress was also made in
broadening protection offerings, with Allstate Protection Plans’
revenues increasing by over 20% due to an expanded product set and
international growth. Allstate’s strategy, operational expertise,
people, and financial strength will enable us to continue creating
value for customers and shareholders,” concluded Wilson.
First Quarter 2024 Results
- Total revenues of $15.3 billion in the first quarter of 2024
increased 10.7%, or $1.5 billion, compared to the prior year
quarter driven by higher average premiums that resulted in a $1.3
billion increase in Property-Liability earned premium.
- Net income applicable to common shareholders was $1.2 billion
in the first quarter of 2024 compared to a net loss of $346 million
in the prior year quarter, as Property-Liability underwriting
results improved. Adjusted net income* was $1.4 billion, or $5.13
per diluted share, compared to an adjusted net loss* of $342
million in the prior year quarter.
- Property-Liability earned premiums of $12.9 billion
increased 10.9% in the first quarter of 2024 compared to the prior
year quarter, primarily driven by higher average premiums from rate
increases. Underwriting income of $898 million in the quarter
increased by $1.9 billion compared to the prior year quarter, due
to increased premiums earned, improved underlying loss experience
and lower catastrophe losses.
Property-Liability
Results
Three months ended March
31,
($ in millions)
2024
2023
% / pts
Change
Premiums earned
$
12,900
$
11,635
10.9
%
Allstate brand
10,604
9,852
7.6
National General
2,296
1,783
28.8
Premiums written
$
13,183
$
11,783
11.9
%
Allstate brand
10,509
9,705
8.3
National General
2,674
2,078
28.7
Underwriting income (loss)
$
898
$
(1,001
)
NM
Allstate brand
790
(972
)
NM
National General
110
(28
)
NM
Recorded combined ratio
93.0
108.6
(15.6
)
Underlying combined ratio*
86.9
93.3
(6.4
)
- Premiums written of $13.2 billion increased 11.9% compared to
the prior year quarter driven by both the Allstate brand and
National General. Allstate brand increased 8.3% primarily due to
higher auto and homeowners average premium, partially offset by the
impact of profit improvement actions on personal auto and
commercial lines policies in force. National General increased
28.7% reflecting higher average premium and policies in force
growth.
- Allstate brand underwriting income in the first quarter of 2024
improved to $790 million compared to a $972 million loss in the
prior year quarter, driven by higher earned premiums, lower
catastrophe losses and improved underlying loss experience.
- National General underwriting income of $110 million in the
first quarter of 2024 increased by $138 million compared to the
prior year quarter, reflecting higher earned premiums and a 4.8
point improvement in the expense ratio.
- Property-Liability combined ratio was 93.0 for the quarter. The
underlying combined ratio* was 86.9, improving 6.4 points compared
to the prior year quarter, due to higher earned premiums, improved
underlying loss experience and operating efficiencies.
- Allstate Protection auto insurance results reflect
execution of a comprehensive plan to restore margins through higher
rates, lower expenses, underwriting actions and claims process
enhancements. Profitability improvement enabled the further removal
of growth restrictions and profitable growth investments have been
initiated in a growing number of states within the Allstate brand.
National General continues to generate profitable growth through
independent agents.
Allstate Protection Auto
Results
Three months ended March
31,
($ in millions, except ratios)
2024
2023
% / pts
Change
Premiums earned
$
8,778
$
7,908
11.0
%
Allstate brand
7,173
6,660
7.7
National General
1,605
1,248
28.6
Premiums written
$
9,357
$
8,349
12.1
%
Allstate brand
7,399
6,826
8.4
National General
1,958
1,523
28.6
Policies in Force (in
thousands)
25,207
25,733
(2.0
)%
Allstate brand
20,038
21,142
(5.2
)
National General
5,169
4,591
12.6
Recorded combined ratio
96.0
104.4
(8.4
)
Underlying combined ratio*
95.1
102.6
(7.5
)
- Earned and written premiums grew 11.0% and 12.1% compared to
the prior year quarter, respectively. The increase was driven by
higher average premium from rate increases, partially offset by a
decline in policies in force.
- Allstate brand auto net written premium was 8.4% higher than
the prior year quarter reflecting a 13.4% increase in average gross
written premium driven by rate increases, partially offset by a
decrease in policies in force. Policies in force decreased 5.2%
compared to prior year in the first quarter, improving from a 6.2%
decline as of year end 2023. The improvement reflects higher
retention and new business levels in rate adequate states as growth
restrictions were removed and advertising investment was increased
in a growing number of states.
- National General auto net written premiums increased 28.6%
compared to the prior year quarter driven by higher average premium
and a 12.6% increase in policies in force.
- Allstate brand auto rate increases were implemented in 27
locations in the first quarter at an average of 8.4%, resulting in
an annualized total brand premium impact of 2.4% in the quarter.
National General auto rate increases were implemented in 27
locations in the first quarter at an average of 9.6%, resulting in
an annualized total brand premium impact of 4.1% in the quarter.
Rate increases will continue to be implemented in states not yet
delivering acceptable returns, and to keep pace with inflationary
trends.
- The recorded auto insurance combined ratio of 96.0 in the first
quarter of 2024 was 8.4 points lower than the prior year quarter,
reflecting higher earned premiums, improved underlying loss
experience, favorable prior year reserve reestimates and operating
efficiencies.
- Prior year non-catastrophe reserve reestimates were favorable
$67 million in the first quarter, reflecting favorable Allstate
brand reserve development, primarily driven by physical damage
coverages.
- The underlying combined ratio* of 95.1 improved by 7.5 points
compared to the prior year quarter from higher average premium,
operating efficiencies and lower accident frequency, partially
driven by milder weather conditions in the quarter. These impacts
more than offset the increase in current year claims severity.
- Allstate Protection homeowners insurance growth reflects
higher average premiums and policies in force growth at National
General and the Allstate brand. Underwriting income was favorably
impacted by lower catastrophe losses and non-catastrophe claim
frequency due to the milder weather.
Allstate Protection Homeowners
Results
Three months ended March
31,
($ in millions, except ratios)
2024
2023
% / pts
Change
Premiums earned
$
3,154
$
2,810
12.2
%
Allstate brand
2,767
2,488
11.2
National General
387
322
20.2
Premiums written
$
2,874
$
2,534
13.4
%
Allstate brand
2,517
2,210
13.9
National General
357
324
10.2
Policies in Force (in
thousands)
7,364
7,262
1.4
%
Allstate brand
6,681
6,621
0.9
National General
683
641
6.6
Recorded combined ratio
82.1
119.0
(36.9
)
Catastrophe Losses
$
555
$
1,449
(61.7
)%
Underlying combined ratio*
65.5
67.6
(2.1
)
- Earned premiums increased by 12.2% and written premiums
increased 13.4% compared to the prior year quarter, primarily
reflecting higher average premium and policies in force growth of
1.4%.
- Allstate brand net written premiums increased 13.9% compared to
the prior year quarter, primarily driven by implemented rate
increases and policies in force growth due to strong new business
growth and higher retention.
- National General net written premiums grew 10.2% compared to
the prior year quarter due to policies in force growth, driven by
the continued rollout of Custom360SM, the new homeowners product
offering in the independent agent channel, and higher average
premiums from implemented rate increases.
- Allstate brand homeowners implemented rate increases in 15
locations in the first quarter at an average of 11.7%, resulting in
an annualized total brand premium impact of 3.4% in the quarter.
National General homeowners rate increases were implemented in 12
locations in the first quarter at an average of 14.0%, resulting in
an annualized total brand premium impact of 1.6% in the
quarter.
- The recorded homeowners insurance combined ratio of 82.1 was
36.9 points below the first quarter of 2023, due to lower
catastrophe losses and higher earned premiums.
- Catastrophe losses of $555 million in the quarter decreased
$894 million compared to the prior year quarter reflecting milder
weather conditions and favorable development from events in 2023
and prior years.
- The underlying combined ratio* of 65.5 decreased by 2.1 points
compared to the prior year quarter, driven by higher earned premium
and favorable non-catastrophe claim frequency from milder weather,
partially offset by higher non-catastrophe claim severity.
- Protection Services continues to broaden the protection
provided to customers largely through embedded distribution
programs. Revenues increased to $753 million in the first quarter
of 2024, 12.2% higher than the prior year quarter, primarily due to
Allstate Protection Plans. Adjusted net income of $54 million
increased by $20 million compared to the prior year quarter, driven
by Allstate Protection Plans and Allstate Roadside.
Protection Services
Results
Three months ended March
31,
($ in millions)
2024
2023
% / $
Change
Total revenues (1)
$
753
$
671
12.2
%
Allstate Protection Plans
464
385
20.5
Allstate Dealer Services
146
148
(1.4
)
Allstate Roadside
66
64
3.1
Arity
39
37
5.4
Allstate Identity Protection
38
37
2.7
Adjusted net income (loss)
$
54
$
34
$
20
Allstate Protection Plans
40
28
12
Allstate Dealer Services
6
7
(1
)
Allstate Roadside
11
4
7
Arity
(4
)
(4
)
—
Allstate Identity Protection
1
(1
)
2
(1) Excludes net gains and losses on investments and derivatives.
- Allstate Protection Plans revenue of $464 million
increased $79 million, or 20.5%, compared to the prior year quarter
driven by growth from expanded product categories and international
business. Adjusted net income of $40 million in the first quarter
of 2024 was $12 million higher than the prior year quarter, driven
by higher revenue coupled with improved claims trends.
- Allstate Dealer Services generated revenue of $146
million through auto dealers, which was 1.4% lower than the first
quarter of 2023. Adjusted net income of $6 million in the first
quarter was $1 million lower than the prior year quarter.
- Allstate Roadside revenue of $66 million in the first
quarter of 2024 increased 3.1% compared to the prior year quarter
driven by price increases and new business growth. Adjusted net
income of $11 million was $7 million higher than the prior year
quarter, primarily driven by increased pricing, improved provider
capacity and lower costs.
- Arity revenue of $39 million increased $2 million
compared to the prior year quarter, primarily due to higher
advertising revenue. Adjusted net loss of $4 million in the first
quarter of 2024 was consistent with the prior year quarter.
- Allstate Identity Protection revenue of $38 million in
the first quarter of 2024 was 2.7% higher than the prior year
quarter due to growth from new and existing clients. Adjusted net
income of $1 million in the first quarter of 2024 compared to a $1
million loss in the prior year quarter.
- Allstate Health and Benefits premiums and contract
charges increased 3.2%, or $15 million, compared to the prior year
quarter driven by growth in individual health and group health.
Adjusted net income of $56 million in the first quarter was
consistent with the prior year quarter as individual health fee
income growth was offset by lower employer voluntary benefits
income.
Allstate Health and Benefits
Results
Three months ended March
31,
($ in millions)
2024
2023
% Change
Premiums and contract charges
$
478
$
463
3.2
%
Employer voluntary benefits
248
255
(2.7
)
Group health
118
107
10.3
Individual health
112
101
10.9
Adjusted net income
$
56
$
56
—
- Allstate Investments $67.9 billion portfolio generated
net investment income of $764 million in the first quarter of 2024,
an increase of $189 million from the prior year quarter due to
higher market-based and performance-based income.
Allstate Investment
Results
Three months ended March
31,
($ in millions, except ratios)
2024
2023
$ / pts
Change
Net investment income
$
764
$
575
$
189
Market-based (1)
626
507
119
Performance-based (1)
201
126
75
Net gains (losses) on investments and
derivatives
$
(164
)
$
14
$
(178
)
Change in unrealized net capital gains
and losses, pre-tax
$
(273
)
$
872
$
(1,145
)
Total return on investment
portfolio
0.5
%
2.4
%
(1.9
)
Total return on investment portfolio
(trailing twelve months)
4.8
%
1.2
%
3.6
(1) Investment expenses are not allocated between market-based and
performance-based portfolios with the exception of investee level
expenses.
- Total return on the investment portfolio was 0.5% for
the first quarter of 2024 and 4.8% for the latest twelve
months.
- Market-based investment income was $626 million in the
first quarter of 2024, an increase of $119 million, or 23.5%,
compared to the prior year quarter, reflecting higher yields in the
$50.8 billion fixed income portfolio. Fixed income duration was 4.9
years as of March 31, 2024, 0.1 year above prior year end and 1.5
years higher than year end 2022. Investment portfolio allocations,
including fixed income duration and equity risk levels, are
informed by expected risk adjusted returns and the enterprise risk
and return position.
- Performance-based investment income totaled $201
million in the first quarter of 2024, an increase of $75 million
compared to the prior year quarter, reflecting higher private
equity valuation increases. The portfolio allocation to
performance-based assets provides a diversifying source of higher
long-term returns, and volatility in reported results is
expected.
- Net losses on investments and derivatives were $164
million in the first quarter of 2024, compared to gains of $14
million in the prior year quarter. Net losses in the first quarter
of 2024 were driven by a $123 million valuation allowance
established for surplus notes issued by two reciprocal insurers and
losses on sales of fixed income securities, partially offset by
valuation gains on equity investments.
- Unrealized net capital losses were $1.1 billion or $273
million adverse to the prior quarter as higher interest rates
resulted in lower fixed income valuations.
Proactive Capital Management
“Operating and financial performance in the first quarter
demonstrates Allstate’s operational excellence and focus on
profitability. Financial condition and capital position remain
strong with statutory surplus in the insurance companies increasing
compared to the prior quarter to $15.9 billion, and $3.2 billion of
assets held at the holding company. Successfully executing the
profit improvement plan, advancing Transformative Growth,
proactively investing and expanding Protection Services delivered
attractive shareholder returns,” said Jess Merten, Chief Financial
Officer.
Visit www.allstateinvestors.com for
additional information about Allstate’s results, including a
webcast of its quarterly conference call and the call presentation.
The conference call will be at 9 a.m. ET on Thursday, May 2.
Financial information, including material announcements about The
Allstate Corporation, is routinely posted on www.allstateinvestors.com.
Forward-Looking Statements
This news release contains “forward-looking statements” that
anticipate results based on our estimates, assumptions and plans
that are subject to uncertainty. These statements are made subject
to the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements do not relate
strictly to historical or current facts and may be identified by
their use of words like “plans,” “seeks,” “expects,” “will,”
“should,” “anticipates,” “estimates,” “intends,” “believes,”
“likely,” “targets” and other words with similar meanings. We
believe these statements are based on reasonable estimates,
assumptions and plans. However, if the estimates, assumptions or
plans underlying the forward-looking statements prove inaccurate or
if other risks or uncertainties arise, actual results could differ
materially from those communicated in these forward-looking
statements. Factors that could cause actual results to differ
materially from those expressed in, or implied by, the
forward-looking statements may be found in our filings with the
U.S. Securities and Exchange Commission, including the “Risk
Factors” section in our most recent annual report on Form 10-K.
Forward-looking statements are as of the date on which they are
made, and we assume no obligation to update or revise any
forward-looking statement.
THE ALLSTATE CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
($ in millions, except par value
data)
March 31, 2024
December 31, 2023
Assets
Investments
Fixed income securities, at fair value
(amortized cost, net $51,837 and $49,649)
$
50,777
$
48,865
Equity securities, at fair value (cost
$2,172 and $2,244)
2,383
2,411
Mortgage loans, net
815
822
Limited partnership interests
8,562
8,380
Short-term, at fair value (amortized cost
$4,320 and $5,145)
4,318
5,144
Other investments, net
1,004
1,055
Total investments
67,859
66,677
Cash
850
722
Premium installment receivables, net
10,573
10,044
Deferred policy acquisition costs
5,946
5,940
Reinsurance and indemnification
recoverables, net
8,726
8,809
Accrued investment income
567
539
Deferred income taxes
161
219
Property and equipment, net
802
859
Goodwill
3,502
3,502
Other assets, net
6,255
6,051
Total assets
$
105,241
$
103,362
Liabilities
Reserve for property and casualty
insurance claims and claims expense
$
40,143
$
39,858
Reserve for future policy benefits
1,325
1,347
Contractholder funds
890
888
Unearned premiums
24,945
24,709
Claim payments outstanding
1,491
1,353
Other liabilities and accrued expenses
10,029
9,635
Debt
7,938
7,942
Total liabilities
86,761
85,732
Equity
Preferred stock and additional capital
paid-in, $1 par value, 25 million shares authorized, 82.0 thousand
shares issued and outstanding, $2,050 aggregate liquidation
preference
2,001
2,001
Common stock, $.01 par value, 2.0 billion
shares authorized and 900 million issued, 264 million and 262
million shares outstanding
9
9
Additional capital paid-in
3,894
3,854
Retained income
50,662
49,716
Treasury stock, at cost (636 million and
638 million shares)
(37,044
)
(37,110
)
Accumulated other comprehensive
income:
Unrealized net capital gains and
losses
(819
)
(604
)
Unrealized foreign currency translation
adjustments
(90
)
(98
)
Unamortized pension and other
postretirement prior service credit
12
13
Discount rate for reserve for future
policy benefits
14
(11
)
Total accumulated other comprehensive
loss
(883
)
(700
)
Total Allstate shareholders’
equity
18,639
17,770
Noncontrolling interest
(159
)
(140
)
Total equity
18,480
17,630
Total liabilities and equity
$
105,241
$
103,362
THE ALLSTATE CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
($ in millions, except per share
data)
Three months ended March
31,
2024
2023
Revenues
Property and casualty insurance
premiums
$
13,512
$
12,173
Accident and health insurance premiums and
contract charges
478
463
Other revenue
669
561
Net investment income
764
575
Net gains (losses) on investments and
derivatives
(164
)
14
Total revenues
15,259
13,786
Costs and expenses
Property and casualty insurance claims and
claims expense
9,501
10,326
Accident, health and other policy
benefits
296
265
Amortization of deferred policy
acquisition costs
1,939
1,744
Operating costs and expenses
1,885
1,716
Pension and other postretirement
remeasurement (gains) losses
(2
)
(53
)
Restructuring and related charges
10
27
Amortization of purchased intangibles
69
81
Interest expense
97
86
Total costs and expenses
13,795
14,192
Income (loss) from operations before
income tax expense
1,464
(406
)
Income tax expense (benefit)
266
(85
)
Net income (loss)
1,198
(321
)
Less: Net loss attributable to
noncontrolling interest
(20
)
(1
)
Net income (loss) attributable to
Allstate
1,218
(320
)
Less: Preferred stock dividends
29
26
Net income (loss) applicable to common
shareholders
$
1,189
$
(346
)
Earnings per common share:
Net income (loss) applicable to common
shareholders per common share - Basic
$
4.51
$
(1.31
)
Weighted average common shares - Basic
263.5
263.5
Net income (loss) applicable to common
shareholders per common share - Diluted
$
4.46
$
(1.31
)
Weighted average common shares -
Diluted
266.5
263.5
Definitions of Non-GAAP Measures
We believe that investors’ understanding of Allstate’s
performance is enhanced by our disclosure of the following non-GAAP
measures. Our methods for calculating these measures may differ
from those used by other companies and therefore comparability may
be limited.
Adjusted net income is net income (loss) applicable to
common shareholders, excluding:
- Net gains and losses on investments and derivatives
- Pension and other postretirement remeasurement gains and
losses
- Amortization or impairment of purchased intangibles
- Gain or loss on disposition
- Adjustments for other significant non-recurring, infrequent or
unusual items, when (a) the nature of the charge or gain is such
that it is reasonably unlikely to recur within two years, or (b)
there has been no similar charge or gain within the prior two
years
- Related income tax expense or benefit of these items
Net income (loss) applicable to common shareholders is the GAAP
measure that is most directly comparable to adjusted net
income.
We use adjusted net income as an important measure to evaluate
our results of operations. We believe that the measure provides
investors with a valuable measure of the Company’s ongoing
performance because it reveals trends in our insurance and
financial services business that may be obscured by the net effect
of net gains and losses on investments and derivatives, pension and
other postretirement remeasurement gains and losses, amortization
or impairment of purchased intangibles, gain or loss on disposition
and adjustments for other significant non-recurring, infrequent or
unusual items and the related tax expense or benefit of these
items. Net gains and losses on investments and derivatives, and
pension and other postretirement remeasurement gains and losses may
vary significantly between periods and are generally driven by
business decisions and external economic developments such as
capital market conditions, the timing of which is unrelated to the
insurance underwriting process. Gain or loss on disposition is
excluded because it is non-recurring in nature and the amortization
or impairment of purchased intangibles is excluded because it
relates to the acquisition purchase price and is not indicative of
our underlying business results or trends. Non-recurring items are
excluded because, by their nature, they are not indicative of our
business or economic trends. Accordingly, adjusted net income
excludes the effect of items that tend to be highly variable from
period to period and highlights the results from ongoing operations
and the underlying profitability of our business. A byproduct of
excluding these items to determine adjusted net income is the
transparency and understanding of their significance to net income
variability and profitability while recognizing these or similar
items may recur in subsequent periods. Adjusted net income is used
by management along with the other components of net income (loss)
applicable to common shareholders to assess our performance. We use
adjusted measures of adjusted net income in incentive compensation.
Therefore, we believe it is useful for investors to evaluate net
income (loss) applicable to common shareholders, adjusted net
income and their components separately and in the aggregate when
reviewing and evaluating our performance. We note that investors,
financial analysts, financial and business media organizations and
rating agencies utilize adjusted net income results in their
evaluation of our and our industry’s financial performance and in
their investment decisions, recommendations and communications as
it represents a reliable, representative and consistent measurement
of the industry and the Company and management’s performance. We
note that the price to earnings multiple commonly used by insurance
investors as a forward-looking valuation technique uses adjusted
net income as the denominator. Adjusted net income should not be
considered a substitute for net income (loss) applicable to common
shareholders and does not reflect the overall profitability of our
business.
The following tables reconcile net income (loss) applicable to
common shareholders and adjusted net income (loss). Taxes on
adjustments to reconcile net income (loss) applicable to common
shareholders and adjusted net income (loss) generally use a 21%
effective tax rate.
($ in millions, except per share
data)
Three months ended March
31,
Consolidated
Per diluted common
share
2024
2023
2024
2023
Net income (loss) applicable to common
shareholders (1)
$
1,189
$
(346
)
$
4.46
$
(1.31
)
Net (gains) losses on investments and
derivatives
164
(14
)
0.62
(0.05
)
Pension and other postretirement
remeasurement (gains) losses
(2
)
(53
)
(0.01
)
(0.20
)
Amortization of purchased intangibles
69
81
0.26
0.31
(Gain) loss on disposition
(4
)
(9
)
(0.02
)
(0.04
)
Income tax benefit
(49
)
(1
)
(0.18
)
(0.01
)
Adjusted net income (loss) *
(1)
$
1,367
$
(342
)
$
5.13
$
(1.30
)
Weighted average dilutive potential common
shares excluded due to net loss applicable to common shareholders
(1)
—
2.6
_____________
(1)
In periods where a net loss or adjusted
net loss is reported, weighted average shares for basic earnings
per share is used for calculating diluted earnings per share
because all dilutive potential common shares are anti-dilutive and
are therefore excluded from the calculation.
Adjusted net income (loss) return on Allstate common
shareholders’ equity is a ratio that uses a non-GAAP measure.
It is calculated by dividing the rolling 12-month adjusted net
income by the average of Allstate common shareholders’ equity at
the beginning and at the end of the 12-months, after excluding the
effect of unrealized net capital gains and losses. Return on
Allstate common shareholders’ equity is the most directly
comparable GAAP measure. We use adjusted net income as the
numerator for the same reasons we use adjusted net income, as
discussed previously. We use average Allstate common shareholders’
equity excluding the effect of unrealized net capital gains and
losses for the denominator as a representation of common
shareholders’ equity primarily applicable to Allstate's earned and
realized business operations because it eliminates the effect of
items that are unrealized and vary significantly between periods
due to external economic developments such as capital market
conditions like changes in equity prices and interest rates, the
amount and timing of which are unrelated to the insurance
underwriting process. We use it to supplement our evaluation of net
income (loss) applicable to common shareholders and return on
Allstate common shareholders’ equity because it excludes the effect
of items that tend to be highly variable from period to period. We
believe that this measure is useful to investors and that it
provides a valuable tool for investors when considered along with
return on Allstate common shareholders’ equity because it
eliminates the after-tax effects of realized and unrealized net
capital gains and losses that can fluctuate significantly from
period to period and that are driven by economic developments, the
magnitude and timing of which are generally not influenced by
management. In addition, it eliminates non-recurring items that are
not indicative of our ongoing business or economic trends. A
byproduct of excluding the items noted above to determine adjusted
net income return on Allstate common shareholders’ equity from
return on Allstate common shareholders’ equity is the transparency
and understanding of their significance to return on common
shareholders’ equity variability and profitability while
recognizing these or similar items may recur in subsequent periods.
We use adjusted measures of adjusted net income return on Allstate
common shareholders’ equity in incentive compensation. Therefore,
we believe it is useful for investors to have adjusted net income
return on Allstate common shareholders’ equity and return on
Allstate common shareholders’ equity when evaluating our
performance. We note that investors, financial analysts, financial
and business media organizations and rating agencies utilize
adjusted net income return on common shareholders’ equity results
in their evaluation of our and our industry’s financial performance
and in their investment decisions, recommendations and
communications as it represents a reliable, representative and
consistent measurement of the industry and the company and
management’s utilization of capital. We also provide it to
facilitate a comparison to our long-term adjusted net income return
on Allstate common shareholders’ equity goal. Adjusted net income
return on Allstate common shareholders’ equity should not be
considered a substitute for return on Allstate common shareholders’
equity and does not reflect the overall profitability of our
business.
The following tables reconcile return on Allstate common
shareholders’ equity and adjusted net income (loss) return on
Allstate common shareholders’ equity.
($ in millions)
For the twelve months ended
March 31,
2024
2023
Return on Allstate common
shareholders’ equity
Numerator:
Net income (loss) applicable to common
shareholders
$
1,219
$
(2,374
)
Denominator:
Beginning Allstate common shareholders’
equity
$
15,524
$
21,105
Ending Allstate common shareholders’
equity (1)
16,638
15,524
Average Allstate common shareholders’
equity
$
16,081
$
18,315
Return on Allstate common shareholders’
equity
7.6
%
(13.0
)%
($ in millions)
For the twelve months ended
March 31,
2024
2023
Adjusted net income (loss) return on
Allstate common shareholders’ equity
Numerator:
Adjusted net income (loss) *
$
1,960
$
(1,311
)
Denominator:
Beginning Allstate common shareholders’
equity
$
15,524
$
21,105
Less: Unrealized net capital gains and
losses
(1,573
)
(996
)
Adjusted beginning Allstate common
shareholders’ equity
17,097
22,101
Ending Allstate common shareholders’
equity (1)
16,638
15,524
Less: Unrealized net capital gains and
losses
(819
)
(1,573
)
Adjusted ending Allstate common
shareholders’ equity
17,457
17,097
Average adjusted Allstate common
shareholders’ equity
$
17,277
$
19,599
Adjusted net income (loss) return on
Allstate common shareholders’ equity *
11.3
%
(6.7
)%
_____________
(1)
Excludes equity related to preferred stock
of $2,001 million and $1,970 million as of March 31, 2024
and 2023, respectively.
Combined ratio excluding the effect of catastrophes, prior
year reserve reestimates and amortization or impairment of
purchased intangibles (“underlying combined ratio”) is a
non-GAAP ratio, which is computed as the difference between four
GAAP operating ratios: the combined ratio, the effect of
catastrophes on the combined ratio, the effect of prior year
non-catastrophe reserve reestimates on the combined ratio, and the
effect of amortization or impairment of purchased intangibles on
the combined ratio. We believe that this ratio is useful to
investors, and it is used by management to reveal the trends in our
Property-Liability business that may be obscured by catastrophe
losses, prior year reserve reestimates and amortization or
impairment of purchased intangibles. Catastrophe losses cause our
loss trends to vary significantly between periods as a result of
their incidence of occurrence and magnitude, and can have a
significant impact on the combined ratio. Prior year reserve
reestimates are caused by unexpected loss development on historical
reserves, which could increase or decrease current year net income.
Amortization or impairment of purchased intangibles relates to the
acquisition purchase price and is not indicative of our underlying
insurance business results or trends. We believe it is useful for
investors to evaluate these components separately and in the
aggregate when reviewing our underwriting performance. The most
directly comparable GAAP measure is the combined ratio. The
underlying combined ratio should not be considered a substitute for
the combined ratio and does not reflect the overall underwriting
profitability of our business.
The following tables reconcile the respective combined ratio to
the underlying combined ratio. Underwriting margin is calculated as
100% minus the combined ratio.
Property-Liability
Three months ended March
31,
2024
2023
Combined ratio
93.0
108.6
Effect of catastrophe losses
(5.7
)
(14.5
)
Effect of prior year non-catastrophe
reserve reestimates
(0.1
)
(0.3
)
Effect of amortization of purchased
intangibles
(0.3
)
(0.5
)
Underlying combined ratio*
86.9
93.3
Effect of prior year catastrophe reserve
reestimates
(1.3
)
(0.4
)
Allstate
Protection - Auto Insurance
Three months ended March
31,
2024
2023
Combined ratio
96.0
104.4
Effect of catastrophe losses
(1.2
)
(1.2
)
Effect of prior year non-catastrophe
reserve reestimates
0.7
(0.1
)
Effect of amortization of purchased
intangibles
(0.4
)
(0.5
)
Underlying combined ratio*
95.1
102.6
Effect of prior year catastrophe reserve
reestimates
(0.1
)
(0.4
)
Allstate
Protection - Homeowners Insurance
Three months ended March
31,
2024
2023
Combined ratio
82.1
119.0
Effect of catastrophe losses
(17.6
)
(51.6
)
Effect of prior year non-catastrophe
reserve reestimates
1.3
0.5
Effect of amortization of purchased
intangibles
(0.3
)
(0.3
)
Underlying combined ratio*
65.5
67.6
Effect of prior year catastrophe reserve
reestimates
(4.7
)
(0.2
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501923026/en/
Al Scott Media Relations (847) 402-5600
Brent Vandermause Investor Relations (847) 402-2800
Grafico Azioni Allstate (NYSE:ALL)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Allstate (NYSE:ALL)
Storico
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