01—Abstract
Summary
Summary of the 10-K filed February 21, 2024. Cited figures are marked; the original filing is the authoritative source.
The Allstate Corporation (ALL) reported a net loss of $316 milliona, or $(1.20) per diluted share, for the fiscal year ended December 31, 2023.
This represents an improvement from the net loss of $1.39 billionb in 2022. Total revenue increased by 11.1% to $57.09 billion, driven by higher property and casualty insurance premiums earned and a recovery in equity valuations compared to the prior year. The Allstate Protection segment, the largest contributor to revenue, showed an underwriting loss of $2.09 billion, an improvement from the $2.78 billion loss in 2022.
This improvement was due to increased premiums earned and lower unfavorable non-catastrophe reserve reestimates, though partially offset by higher catastrophe losses. The company is actively implementing a profitability plan for its auto insurance business, including rate increases, expense reductions, and underwriting adjustments.
Looking ahead, Allstate remains focused on its 'Transformative Growth' strategy, aiming to improve customer value, expand access, enhance acquisition sophistication, and modernize its technology ecosystem. The company is also pursuing the sale of its Health and Benefits business, announced in November 2023.
02—Key points
Key Highlights
- Net loss improved to $316 million in 2023 from a $1.39 billion net loss in 2022.
- Total revenue increased 11.1% to $57.09 billion, driven by higher premiums earned and improved investment valuations.
- The Allstate Protection segment's underwriting loss decreased to $2.09 billion from $2.78 billion in the prior year, signaling progress in profitability initiatives.
- The company is actively executing a plan to improve auto insurance profitability through rate increases and expense reductions.
- Policies in force across all segments increased by 2.8% to 194 million, with Protection Services seeing a 4.3% rise.
- Allstate made significant progress on its 'Transformative Growth' strategy, including cost reductions and the deployment of a new technology platform.
- The company announced its intention to sell its Health and Benefits business in November 2023.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 21, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $57.09B$51.41B | +11.1% |
| Operating Income | -$188.00M-$1.29B | +85.4% |
| Interest Expense | $379.00M$335.00M | +13.1% |
| Net Income | -$316.00M-$1.42B | +77.7% |
| EPS (Basic) | $-1.20$-5.14 | +76.7% |
| EPS (Diluted) | $-1.20$-5.14 | +76.7% |
| Shares Outstanding (Basic) | 262.50M271.20M | −3.2% |
| Shares Outstanding (Diluted) | 262.50M271.20M | −3.2% |
05—Questions
Frequently Asked Questions
What was Allstate's net income/loss for the fiscal year 2023?
Allstate reported a net loss of $316 million for the fiscal year ended December 31, 2023, an improvement from a net loss of $1.39 billion in 2022.
How did the Allstate Protection segment perform in 2023?
The Allstate Protection segment reported an underwriting loss of $2.09 billion in 2023, an improvement from the $2.78 billion underwriting loss in 2022. This was driven by higher premiums earned and lower unfavorable non-catastrophe reserve reestimates, partially offset by increased catastrophe losses.
What is Allstate's current strategy regarding its Health and Benefits business?
Allstate announced in November 2023 that it is pursuing the sale of its Health and Benefits business.
What is the company's outlook on auto insurance profitability?
Allstate is executing a comprehensive plan to improve auto insurance profitability by raising rates, reducing operating expenses and advertising, implementing underwriting restrictions in underperforming states, and enhancing claims processes to manage loss costs. Rate increases for both Allstate and National General brands are expected to continue into 2024.
06—Continue