ALLSTATE CORP Quarterly Report for Q2 Ended Jun 30, 2024

Summary

Allstate Corp. reported a net income of $301 million for the second quarter of 2024, a significant turnaround from a loss of $1.39 billion in the same period last year. This improvement was driven by stronger underwriting results, particularly in the Allstate Protection segment, which saw its underwriting loss narrow considerably due to increased earned premiums and lower catastrophe losses. Total revenues for the quarter grew by 12.4% year-over-year to $15.71 billion, supported by higher average premiums from rate increases and an increase in net investment income. The company's financial position remains solid, with total assets growing and shareholders' equity increasing to $18.59 billion, reflecting the positive net income. Despite ongoing macroeconomic challenges and inflation impacts, Allstate demonstrated a robust recovery in its core property-liability operations. The company's strategic focus on increasing personal property-liability market share and expanding protection offerings is showing positive traction. The improvement in auto and homeowners insurance profitability has allowed for strategic increases in advertising and the removal of some underwriting restrictions to drive growth. While catastrophe losses remain a significant factor, they were lower year-over-year, contributing to the improved underwriting performance. The Protection Services segment also showed growth, driven by Allstate Protection Plans, and the Health and Benefits segment maintained stable performance. Overall, Allstate presents a picture of recovery and strategic execution in a challenging operating environment.

Key Highlights

• 1Net income of $301 million in Q2 2024, a substantial improvement from a net loss of $1.39 billion in Q2 2023.
• 2Total revenues increased by 12.4% to $15.71 billion in Q2 2024, driven by higher average premiums and increased net investment income.
• 3Allstate Protection segment's underwriting loss narrowed significantly to $142 million in Q2 2024 from $2.09 billion in Q2 2023, reflecting improved earned premiums and reduced catastrophe losses.
• 4Catastrophe losses decreased to $2.12 billion in Q2 2024 from $2.70 billion in Q2 2023.
• 5Shareholders' equity increased to $18.59 billion as of June 30, 2024, up from $17.77 billion as of December 31, 2023.
• 6Book value per diluted common share rose to $62.14 as of June 30, 2024, an increase of 21.2% from the prior year.
• 7Net investment income increased by $102 million to $712 million in Q2 2024, supported by higher market-based investment results.

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