01—Abstract
Summary
Summary of the 10-K filed February 24, 2025. Cited figures are marked; the original filing is the authoritative source.
The Allstate Corporation's 2024 Form 10-K details a significant financial turnaround, with consolidated net income of $4.55 billiona compared to a net loss of $316 million in 2023.
This improvement was driven by strong performance in the Allstate Protection segment, which reported underwriting income of $3.15 billionb, a substantial recovery from the prior year's underwriting loss of $2.09 billion. This was primarily attributed to higher earned premiums, favorable reserve reestimates, and lower losses, partially offset by increased advertising costs. Total revenue increased by 12.3% to $64.11 billion, fueled by premium rate increases and a 24.8% rise in net investment income to $3.09 billion.
The company is actively managing its business mix, including strategic divestitures in the Health and Benefits segment (employer voluntary benefits and group health), aimed at focusing on core property-liability and protection services. Allstate's financial strength remains robust, with shareholders' equity growing to $21.44 billionc and book value per diluted common share increasing by 21.8% to $72.35.
02—Key points
Key Highlights
- Allstate reported a significant net income of $4.55 billion for 2024, a substantial improvement from a net loss of $316 million in 2023.
- The Allstate Protection segment achieved an underwriting income of $3.15 billion, a strong recovery from a $2.09 billion underwriting loss in 2023, driven by higher premiums and improved loss trends.
- Total revenues increased by 12.3% to $64.11 billion, supported by premium rate adjustments and a 24.8% increase in net investment income to $3.09 billion.
- The company is strategically divesting its employer voluntary benefits and group health businesses within the Allstate Health and Benefits segment, expected to close in 2025.
- Shareholders' equity grew to $21.44 billion, and book value per diluted common share increased by 21.8% to $72.35.
- The Property-Liability combined ratio improved to 94.3% from 104.5% in the prior year, reflecting the success of the auto insurance profitability plan and lower catastrophe losses.
- Policies in force across the consolidated company reached 208 million, a 7.2% increase, although Allstate Protection policies saw a slight decrease due to auto insurance trends.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 24, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $64.11B$57.09B | +12.3% |
| Net Income | $4.55B-$316.00M | +1539.9% |
| EPS (Basic) | $17.22$-1.20 | +1535.0% |
| EPS (Diluted) | $16.99$-1.20 | +1515.8% |
| Shares Outstanding (Basic) | 264.30M262.50M | +0.7% |
| Shares Outstanding (Diluted) | 267.80M262.50M | +2.0% |
05—Questions
Frequently Asked Questions
What was the primary driver of Allstate's improved financial performance in 2024?
The primary driver of Allstate's improved financial performance in 2024 was the significant recovery in the Allstate Protection segment, which moved from an underwriting loss in 2023 to substantial underwriting income in 2024. This was mainly due to higher earned premiums from rate increases, favorable reserve reestimates, and reduced losses, coupled with effective execution of the auto insurance profitability plan and lower catastrophe losses.
How is Allstate addressing challenges in the auto insurance market?
Allstate is actively addressing auto insurance market challenges through a comprehensive profitability plan that includes implementing rate increases across various locations to offset higher loss costs. While this led to a decrease in auto insurance policies in force within the Allstate Protection segment, the company saw increased new issued applications across all channels and is focusing on improving customer value through its 'Affordable, Simple and Connected' product offerings.
What is the status of Allstate's divestitures in the Health and Benefits segment?
Allstate has entered into agreements to sell its employer voluntary benefits business (expected to close in the first half of 2025) and its group health business (expected to close during 2025). These divestitures are part of a strategy to focus resources and capital on core property-liability and protection services businesses. The future of the individual health business is subject to further decision on retention or divestiture.
How did Allstate's investment portfolio perform in 2024?
Allstate's investment portfolio performed well, with total revenue from investments increasing by 24.8% to $3.09 billion. Net investment income benefited from strategic repositioning into higher-yielding fixed income securities and higher investment balances. The total return on the $72.61 billion investment portfolio was 3.8%.
06—Continue