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好事达报告2024年第三季度业绩
尽管灾难损失增加，但仍能获得优异的回报
伊利诺伊州NORTHBROOk，2024年10月30日 - 好事达公司（纽交所：所有板块）今天公布了2024年第三季度的财务业绩。
好事达公司财务摘要 | |||||||||||||||||||||||
| 截至9月30日的三个月， | 截至9月30日的九个月 | ||||||||||||||||||||||
| (单位：百万美元，每股数据和比率) | 2024 | 2023 | % / 点 变更 | 2024 | 2023 | % / 点 变更 | |||||||||||||||||
| 营业收入合计 | $ | 16,627 | $ | 14,497 | 14.7 | % | $ | 47,600 | $ | 42,262 | 12.6 | % | |||||||||||
| 净利润（亏损）适用于普通股股东 | 1,161 | (41) | 未出现数据 | 2,651 | (1,776) | 未出现数据 | |||||||||||||||||
每股稀释普通股 (1) | 4.33 | (0.16) | 未出现数据 | 9.91 | (6.76) | 未出现数据 | |||||||||||||||||
| 净利润（调整后）* | 1,048 | 214 | 未出现数据 | 2,844 | (1,290) | 未出现数据 | |||||||||||||||||
每股稀释后普通股* (1) | 3.91 | 0.81 | 未出现数据 | 10.64 | (4.91) | 未出现数据 | |||||||||||||||||
| 好事达普通股股东权益回报率（过去十二个月） | |||||||||||||||||||||||
| 净利润（亏损）适用于普通股股东 | 26.1 | % | (14.7) | % | 40.8 | ||||||||||||||||||
| 净利润（调整后）* | 26.1 | % | (9.7) | % | 35.8 | ||||||||||||||||||
| 每股普通股流通量（百万美元） | 264.8 | 261.7 | 1.2 | % | |||||||||||||||||||
| 每股普通股账面价值 | $ | 70.35 | $ | 47.79 | 47.2 | % | |||||||||||||||||
综合保费收入 (2) | $ | 15,872 | $ | 14,425 | 10.0 | % | $ | 45,589 | $ | 41,021 | 11.1 | % | |||||||||||
| 财产责任保险保费收入 | 13,694 | 12,270 | 11.6 | % | 39,933 | 35,826 | 11.5 | % | |||||||||||||||
财产责任综合比率 | |||||||||||||||||||||||
| 记录 | 96.4 | 103.4 | (7.0) | 96.9 | 109.8 | (12.9) | |||||||||||||||||
| 基础综合比率* | 83.2 | 91.9 | (8.7) | 85.1 | 92.7 | (7.6) | |||||||||||||||||
| 灾难损失 | $ | 1,703 | $ | 1,181 | 44.2 | % | $ | 4,554 | $ | 5,568 | (18.2) | % | |||||||||||
有效保单总数（以千计） | 205,483 | 190,089 | 8.1 | % | |||||||||||||||||||
(1)在报告净亏损或调整后的净亏损的周期中，由于所有可能具有稀释效应的普通股股份是抗稀释的，因此在计算每股摊薄收益时使用基本每股收益的加权平均股份。
(2)包括对好事达保护和保护服务部门的已投保费和对健康与福利部门的保费和合同费用。
* 本公告中使用的非美国通用会计原则（“非GAAP”）的衡量标准将会用星号标注，并在本文件的“非GAAP衡量标准定义”部分进行定义和与最近似的GAAP衡量标准调节。
Nm = 没有意义
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2024年第三季度业绩
•2024第三季度总收入为166亿美元，比上年同期增长21亿美元，增幅为14.7%，主要受财产责任保险赔付额增加的推动。
•2024年第三季度适用于普通股股东的净利润为12亿美元，而上一年同期净亏损为4100万美元，财产责任核保业绩有所改善。调整后的净利润为10亿美元，每股摊薄收益为3.91美元，而上一年同期调整后的净利润为21400万美元。
好事达在实施长期增长计划的同时专注于近期表现，获得了强劲的财务回报和改善的战略地位，好事达的董事长、首席执行官和总裁汤姆·威尔逊表示。收入比去年同期增长了近15％，季度净利润为12亿美元，调整后的净利润净资产回报率为上一财年的26.1％。成功执行汽车保险利润改进计划有利于结果，创造了48600万美元的汽车保险承保收入。尽管遭受了12亿美元的灾害损失，比去年同季度高出40％，但家庭保险业务仍在季度中实现了承保利润。第三季度的成果包括飓风贝瑞尔、戴比、弗朗辛和海伦，我们动用了超过5,000人处理超过10000万起索赔。飓风米尔顿在季度结束后不久影响了客户，估计损失约1亿美元。保护服务、健康福利和投资的强劲表现为每股调整后净利润贡献了3.91美元。
“在实施增加个人财产-责任业务市场份额和拓展保护方案的策略方面也取得了进展。 好事达保险汽车新业务销售额增加了26％，并通过增加广告和拓展分销渠道。然而，在保留方面的损失反映出过去几年里显著价格上涨的影响，这抵消了该增长，造成车险在册套数下降。 房主保险利润率提高，在册保单高于去年同期2.5％。 保护计划在国际上扩展，并收购了金斧头以增强移动设备保护能力。 继续实施卓越运营和增长策略将继续创造股东价值，”Wilson总结道。
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•财产责任 2024年第三季度赚取的保费达到137亿美元，比去年同期增长11.6%，主要受到平均保费水平提高的推动。本季度的核保收入为4.95亿美元，比去年同期的4.14亿美元亏损好了9.09亿美元。
| 财产责任成果 | |||||||||||||||||||||||
| 截至9月30日的三个月， | 截至9月30日的九个月 | ||||||||||||||||||||||
| （单位：百万美元） | 2024 | 2023 | % / 点 变更 | 2024 | 2023 | % / 点 变更 | |||||||||||||||||
| 赚取的保费 | $ | 13,694 | $ | 12,270 | 11.6 | % | $ | 39,933 | $ | 35,826 | 11.5 | % | |||||||||||
| 保险收入 | $ | 14,707 | $ | 13,304 | 10.5 | % | $ | 42,169 | $ | 37,707 | 11.8 | % | |||||||||||
| 承保收入（损失） | $ | 495 | $ | (414) | 未出现数据 | $ | 1,248 | $ | (3,509) | 未出现数据 | |||||||||||||
| 记录的综合比率 | 96.4 | 103.4 | (7.0) | 96.9 | 109.8 | (12.9) | |||||||||||||||||
| 基础综合比率* | 83.2 | 91.9 | (8.7) | 85.1 | 92.7 | (7.6) | |||||||||||||||||
◦控制支出，同时继续在我们认为对长期成功至关重要的领域进行投资。已实收保费同比增长10.5%，反映了好事达和国家大都会品牌的保费增加。
◦控制支出，同时继续在我们认为对长期成功至关重要的领域进行投资。财产责任合并比率第四季度为96.4，前九个月为96.9。与去年相比，由于更高的平均赚取保费和改善的基础损失经验完全抵消了第三季度的灾难损失和广告费用的增加，这分别好了7.0和12.9个点。
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◦控制支出，同时继续在我们认为对长期成功至关重要的领域进行投资。好事达保险汽车保护 保险业绩反映了成功执行全面计划恢复利润率。盈利能力的提高支持了在风险适当的州和风险区域增加投资。
| 好事达保险汽车保护结果 | |||||||||||||||||||||||
| 截至9月30日的三个月， | 截至9月30日的九个月 | ||||||||||||||||||||||
| （以百万美元为单位，除了比率） | 2024 | 2023 | % / 点 变更 | 2024 | 2023 | % / 点 变更 | |||||||||||||||||
| 赚取的保费 | $ | 9,270 | $ | 8,345 | 11.1 | % | $ | 27,127 | $ | 24,374 | 11.3 | % | |||||||||||
| 保险收入 | 9,539 | 8,770 | 8.8 | 28,180 | 25,388 | 11.0 | |||||||||||||||||
| 有效保单数量（以千计） | 24,998 | 25,376 | (1.5) | ||||||||||||||||||||
| 记录的综合比率 | 94.8 | 102.1 | (7.3) | 95.6 | 104.9 | (9.3) | |||||||||||||||||
| 基础综合比率* | 92.0 | 98.8 | (6.8) | 93.5 | 101.2 | (7.7) | |||||||||||||||||
◦控制支出，同时继续在我们认为对长期成功至关重要的领域进行投资。已赚保费同比增长11.1%，增长主要受到费率上涨的推动，部分抵消了在保单数量下降1.5%的影响。
◦Allstate brand auto rate increases result in an annualized total brand premium impact of 2.9% in the quarter and 6.3% through the first nine months of 2024. National General auto rate increases result in an annualized total brand premium impact of 1.7% in the quarter and 7.8% through the first nine months of 2024.
◦The recorded auto insurance combined ratio of 94.8 in the third quarter of 2024 was 7.3 points lower than the prior year quarter, reflecting higher average earned premiums, improved underlying loss experience and favorable prior year reserve reestimates.
◦The severity estimated for claims reported in the first two quarters of the year was reduced in the third quarter which had a favorable impact on quarterly results. Excluding this impact, the third quarter combined ratio would have been 95.6.
◦Prior year non-catastrophe reserve reestimates were favorable $55 million in the third quarter, reflecting favorable Allstate brand reserve development, primarily driven by physical damage coverages.
◦Allstate Protection homeowners insurance generates attractive returns and is an attractive growth opportunity. The third quarter was profitable despite a 40% increase in catastrophe losses. Premiums earned increased to $3.4 billion and the recorded combined ratio was 98.2. Third quarter catastrophe losses were $1.2 billion reflecting four hurricanes and 46 severe weather and other events. The recorded combined ratio for the first nine months of 2024 was 97.5 which generated $249 million of underwriting income compared to an underwriting loss of $2.0 billion during the same period in 2023.
| Allstate Protection Homeowners Results | |||||||||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| ($ in millions, except ratios) | 2024 | 2023 | % / pts Change | 2024 | 2023 | % / pts Change | |||||||||||||||||
| Premiums earned | $ | 3,403 | $ | 2,969 | 14.6 | % | $ | 9,812 | $ | 8,662 | 13.3 | % | |||||||||||
| Premiums written | 4,073 | 3,525 | 15.5 | 10,792 | 9,440 | 14.3 | |||||||||||||||||
| Policies in Force (in thousands) | 7,483 | 7,297 | 2.5 | ||||||||||||||||||||
| Recorded combined ratio | 98.2 | 104.4 | (6.2) | 97.5 | 122.8 | (25.3) | |||||||||||||||||
| Catastrophe Losses | $ | 1,231 | $ | 878 | 40.2 | % | $ | 3,402 | $ | 4,516 | (24.7) | % | |||||||||||
| Underlying combined ratio* | 62.1 | 72.9 | (10.8) | 63.6 | 69.4 | (5.8) | |||||||||||||||||
◦Earned premiums increased by 14.6% compared to the prior year quarter, primarily reflecting higher average premium and policies in force growth of 2.5%.
▪Policies in force growth reflects improved retention and increased new policy sales.
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◦Allstate brand homeowners rate increases result in an annualized total brand premium impact of 3.1% in the quarter and 7.6% through the first nine months of 2024. Implemented rate increases and inflation in insured home replacement costs resulted in a 10.8% increase in homeowners insurance average gross written premium compared to the prior year quarter.
◦National General brand homeowners rate increases result in an annualized total brand premium impact of 2.2% in the quarter and 6.1% through the first nine months of 2024.
◦Catastrophe losses of $1.2 billion in the quarter increased $353 million compared to the prior year quarter.
◦The recorded homeowners insurance combined ratio of 98.2 was 6.2 points below the third quarter of 2023 reflecting higher average earned premiums and favorable average underlying loss costs partially offset by higher catastrophe losses. The underlying combined ratio* of 62.1 decreased by 10.8 points compared to the prior year quarter.
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•Protection Services provides protection solutions and services through five businesses largely by embedding Allstate branded offerings in non-insurance purchases. Revenues increased to $822 million in the third quarter of 2024, 17.9% higher than the prior year quarter, primarily due to Allstate Protection Plans and Arity. Adjusted net income of $58 million increased by $31 million compared to the prior year quarter, driven by Allstate Protection Plans.
| Protection Services Results | |||||||||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2024 | 2023 | % / $ Change | 2024 | 2023 | % / $ Change | |||||||||||||||||
Total revenues (1) | $ | 822 | $ | 697 | 17.9 | % | $ | 2,348 | $ | 2,054 | 14.3 | % | |||||||||||
| Allstate Protection Plans | 512 | 416 | 23.1 | 1,459 | 1,200 | 21.6 | |||||||||||||||||
| Allstate Dealer Services | 146 | 146 | — | 440 | 442 | (0.5) | |||||||||||||||||
| Allstate Roadside | 53 | 69 | (23.2) | 170 | 199 | (14.6) | |||||||||||||||||
| Arity | 74 | 29 | 155.2 | 165 | 101 | 63.4 | |||||||||||||||||
| Allstate Identity Protection | 37 | 37 | — | 114 | 112 | 1.8 | |||||||||||||||||
| Adjusted net income (loss) | $ | 58 | $ | 27 | $ | 31 | $ | 167 | $ | 102 | $ | 65 | |||||||||||
| Allstate Protection Plans | 39 | 20 | 19 | 120 | 79 | 41 | |||||||||||||||||
| Allstate Dealer Services | 5 | 5 | — | 17 | 18 | (1) | |||||||||||||||||
| Allstate Roadside | 10 | 7 | 3 | 29 | 17 | 12 | |||||||||||||||||
| Arity | 1 | (6) | 7 | (5) | (13) | 8 | |||||||||||||||||
| Allstate Identity Protection | 3 | 1 | 2 | 6 | 1 | 5 | |||||||||||||||||
(1)Excludes net gains and losses on investments and derivatives.
◦Allstate Protection Plans continued to grow rapidly by expanding distribution relationships and protection offerings. Revenue of $512 million increased $96 million, or 23.1%, compared to the prior year quarter driven by growth in North American and international business. Adjusted net income of $39 million in the third quarter of 2024 was $19 million higher than the prior year quarter.
◦Allstate Dealer Services generated revenue of $146 million and adjusted net income of $5 million which were consistent with the prior year quarter.
◦Allstate Roadside revenue of $53 million in the third quarter of 2024 decreased 23.2% compared to the prior year quarter reflecting the discontinuance of a large unprofitable account. Adjusted net income of $10 million was $3 million higher than the prior year quarter, primarily driven by increased pricing, improved provider capacity and lower costs.
◦Arity revenue of $74 million increased $45 million compared to the prior year quarter, due to higher revenue from lead sales. Adjusted net income of $1 million in the third quarter of 2024 was $7 million higher than prior year quarter.
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◦Allstate Identity Protection revenue of $37 million in the third quarter of 2024 was consistent with prior year quarter. Adjusted net income of $3 million in the third quarter of 2024 was $2 million higher than prior year quarter driven by lower operating expenses.
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•Allstate Health and Benefits
◦Divestiture of these businesses is being pursued to capture value through greater strategic alignment with acquiring companies. An agreement to sell the Employer Voluntary Benefits (EVB) business to StanCorp Financial for $2 billion was finalized and will be completed upon regulatory approval. As a result, EVB is classified as “Held For Sale” on the balance sheet while operations are fully reflected in results. The process to evaluate disposition of the remaining two businesses is progressing.
◦Premiums and contract charges for health and benefits increased 5.2%, or $24 million, compared to the prior year quarter primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits. Adjusted net income of $37 million in the third quarter was $32 million lower than prior year quarter attributable to increased benefit utilization across all businesses.
Allstate Health and Benefits Results | |||||||||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||
| Premiums and contract charges | $ | 487 | $ | 463 | 5.2 | % | $ | 1,439 | $ | 1,379 | 4.4 | % | |||||||||||
| Employer voluntary benefits | 248 | 253 | (2.0) | 742 | 753 | (1.5) | |||||||||||||||||
| Group health | 120 | 111 | 8.1 | 358 | 328 | 9.1 | |||||||||||||||||
| Individual health | 119 | 99 | 20.2 | 339 | 298 | 13.8 | |||||||||||||||||
| Adjusted net income | $ | 37 | $ | 69 | (46.4) | $ | 151 | $ | 182 | (17.0) | % | ||||||||||||
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•Allstate Investments pursues a proactive approach to balancing risk and returns for the $73.6 billion portfolio. In 2023, fixed income duration was extended and public equity holdings significantly lowered to optimize risk adjusted returns on capital. Net investment income of $783 million in the third quarter of 2024, increased by $94 million from the prior year quarter due to portfolio repositioning into higher yielding fixed income securities and increased investment balances.
| Allstate Investment Results | |||||||||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| ($ in millions, except ratios) | 2024 | 2023 | $ / pts Change | 2024 | 2023 | $ / pts Change | |||||||||||||||||
| Net investment income | $ | 783 | $ | 689 | $ | 94 | $ | 2,259 | $ | 1,874 | $ | 385 | |||||||||||
Market-based (1) | 708 | 567 | 141 | 2,001 | 1,610 | 391 | |||||||||||||||||
Performance-based (1) | 143 | 186 | (43) | 451 | 439 | 12 | |||||||||||||||||
| Net gains (losses) on investments and derivatives | $ | 243 | $ | (86) | $ | 329 | $ | (24) | $ | (223) | $ | 199 | |||||||||||
| Change in unrealized net capital gains and losses, pre-tax | $ | 1,677 | $ | (855) | $ | 2,532 | $ | 1,252 | $ | (325) | $ | 1,577 | |||||||||||
Total return on investment portfolio (2) | 3.7 | % | (0.4) | % | 4.1 | 5.0 | % | 2.1 | % | 2.9 | |||||||||||||
Total return on investment portfolio (2) (trailing twelve months) | 9.4 | % | 4.6 | % | 4.8 | ||||||||||||||||||
(1)Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.
(2)Beginning in the third quarter of 2024, calculations include investments held for sale.
◦Market-based investment income was $708 million in the third quarter of 2024, an increase of $141 million, or 24.9%, compared to the prior year quarter, reflecting higher yields and increased asset balances in the $63.3 billion market-based portfolio. Fixed income duration was 5.3 years as of September 30, 2024, 0.5 years above prior year end.
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◦Performance-based investment income totaled $143 million in the third quarter of 2024, a decrease of $43 million compared to the prior year quarter primarily reflecting lower real estate investment results. The portfolio allocation to performance-based assets provides a diversifying source of higher long-term returns, and volatility in reported results is expected.
◦Net gains on investments and derivatives were $243 million in the third quarter of 2024, compared to losses of $86 million in the prior year quarter. Net gains in the third quarter of 2024 were driven by valuation gains on equity investments and sales of fixed income securities.
◦Unrealized net capital gains increased by $1.7 billion from the second quarter of 2024 as lower interest rates resulted in higher fixed income valuations.
◦Total return on the investment portfolio was 3.7% for the third quarter of 2024 and 9.4% for the latest twelve months.
Proactive Capital Management
“Allstate continues to be strongly capitalized while generating attractive returns with adjusted net income return on equity* of 26.1% over the last twelve months. Total estimated statutory surplus in the insurance companies increased to $17.3 billion and $3.0 billion of assets are held at the holding company. The divestiture of the Employer Voluntary Benefits business is expected in the first half of 2025,” 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, October 31. 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.
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| THE ALLSTATE CORPORATION AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) | |||||||||||
($ in millions, except par value data) | September 30, 2024 | December 31, 2023 | |||||||||
| Assets | |||||||||||
| Investments | |||||||||||
Fixed income securities, at fair value (amortized cost, net $53,447 and $49,649) | $ | 53,961 | $ | 48,865 | |||||||
Equity securities, at fair value (cost $1,829 and $2,244) | 2,091 | 2,411 | |||||||||
| Mortgage loans, net | 765 | 822 | |||||||||
| Limited partnership interests | 8,925 | 8,380 | |||||||||
Short-term, at fair value (amortized cost $6,995 and $5,145) | 6,994 | 5,144 | |||||||||
| Other investments, net | 866 | 1,055 | |||||||||
| Total investments | 73,602 | 66,677 | |||||||||
| Cash | 816 | 722 | |||||||||
| Premium installment receivables, net | 11,041 | 10,044 | |||||||||
| Deferred policy acquisition costs | 5,751 | 5,940 | |||||||||
| Reinsurance and indemnification recoverables, net | 9,013 | 8,809 | |||||||||
| Accrued investment income | 603 | 539 | |||||||||
| Deferred income taxes | — | 219 | |||||||||
| Property and equipment, net | 714 | 859 | |||||||||
| Goodwill | 3,206 | 3,502 | |||||||||
| Other assets, net | 5,834 | 6,051 | |||||||||
| Assets held for sale | 3,163 | — | |||||||||
| Total assets | $ | 113,743 | $ | 103,362 | |||||||
| Liabilities | |||||||||||
| Reserve for property and casualty insurance claims and claims expense | $ | 42,743 | $ | 39,858 | |||||||
| Reserve for future policy benefits | 274 | 1,347 | |||||||||
| Contractholder funds | — | 888 | |||||||||
| Unearned premiums | 27,059 | 24,709 | |||||||||
| Claim payments outstanding | 1,727 | 1,353 | |||||||||
| Other liabilities and accrued expenses | 10,644 | 9,635 | |||||||||
| Debt | 8,083 | 7,942 | |||||||||
| Liabilities held for sale | 2,164 | — | |||||||||
| Total liabilities | 92,905 | 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, 265 million and 262 million shares outstanding | 9 | 9 | |||||||||
| Additional capital paid-in | 3,987 | 3,854 | |||||||||
| Retained income | 51,635 | 49,716 | |||||||||
Treasury stock, at cost (635 million and 638 million shares) | (37,006) | (37,110) | |||||||||
Accumulated other comprehensive income (loss): | |||||||||||
Unrealized net capital gains and losses | 361 | (604) | |||||||||
| Unrealized foreign currency translation adjustments | (99) | (98) | |||||||||
| Unamortized pension and other postretirement prior service credit | 12 | 13 | |||||||||
Discount rate for reserve for future policy benefits | (23) | (11) | |||||||||
| Total accumulated other comprehensive income (loss) | 251 | (700) | |||||||||
| Total Allstate shareholders’ equity | 20,877 | 17,770 | |||||||||
| Noncontrolling interest | (39) | (140) | |||||||||
Total equity | 20,838 | 17,630 | |||||||||
Total liabilities and equity | $ | 113,743 | $ | 103,362 | |||||||
7
| THE ALLSTATE CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||||
($ in millions, except per share data) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Property and casualty insurance premiums | $ | 14,333 | $ | 12,839 | $ | 41,797 | $ | 37,482 | |||||||||||||||
| Accident and health insurance premiums and contract charges | 487 | 463 | 1,439 | 1,379 | |||||||||||||||||||
| Other revenue | 781 | 592 | 2,129 | 1,750 | |||||||||||||||||||
| Net investment income | 783 | 689 | 2,259 | 1,874 | |||||||||||||||||||
| Net gains (losses) on investments and derivatives | 243 | (86) | (24) | (223) | |||||||||||||||||||
| Total revenues | 16,627 | 14,497 | 47,600 | 42,262 | |||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Property and casualty insurance claims and claims expense | 10,409 | 10,237 | 30,711 | 32,290 | |||||||||||||||||||
Accident, health and other policy benefits (including remeasurement (gains) losses of $1, $0, $1 and $0) | 317 | 262 | 904 | 785 | |||||||||||||||||||
| Amortization of deferred policy acquisition costs | 2,037 | 1,841 | 5,977 | 5,374 | |||||||||||||||||||
| Operating costs and expenses | 2,217 | 1,771 | 6,121 | 5,273 | |||||||||||||||||||
| Pension and other postretirement remeasurement (gains) losses | 26 | 149 | 15 | 56 | |||||||||||||||||||
| Restructuring and related charges | 28 | 87 | 51 | 141 | |||||||||||||||||||
| Amortization of purchased intangibles | 71 | 83 | 210 | 246 | |||||||||||||||||||
| Interest expense | 104 | 88 | 299 | 272 | |||||||||||||||||||
| Total costs and expenses | 15,209 | 14,518 | 44,288 | 44,437 | |||||||||||||||||||
| Income (loss) from operations before income tax expense | 1,418 | (21) | 3,312 | (2,175) | |||||||||||||||||||
| Income tax expense (benefit) | 254 | (17) | 603 | (475) | |||||||||||||||||||
| Net income (loss) | 1,164 | (4) | 2,709 | (1,700) | |||||||||||||||||||
| Less: Net (loss) income attributable to noncontrolling interest | (26) | 1 | (30) | (23) | |||||||||||||||||||
| Net income (loss) attributable to Allstate | 1,190 | (5) | 2,739 | (1,677) | |||||||||||||||||||
| Less: Preferred stock dividends | 29 | 36 | 88 | 99 | |||||||||||||||||||
| Net income (loss) applicable to common shareholders | $ | 1,161 | $ | (41) | $ | 2,651 | $ | (1,776) | |||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||
| Net income (loss) applicable to common shareholders per common share - Basic | $ | 4.39 | $ | (0.16) | $ | 10.04 | $ | (6.76) | |||||||||||||||
| Weighted average common shares - Basic | 264.6 | 261.8 | 264.1 | 262.6 | |||||||||||||||||||
| Net income (loss) applicable to common shareholders per common share - Diluted | $ | 4.33 | $ | (0.16) | $ | 9.91 | $ | (6.76) | |||||||||||||||
| Weighted average common shares - Diluted | 268.0 | 261.8 | 267.4 | 262.6 | |||||||||||||||||||
8
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.
9
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 September 30, | ||||||||||||||||||||||
| Consolidated | Per diluted common share | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income (loss) applicable to common shareholders (1) | $ | 1,161 | $ | (41) | $ | 4.33 | $ | (0.16) | |||||||||||||||
| Net (gains) losses on investments and derivatives | (243) | 86 | (0.91) | 0.33 | |||||||||||||||||||
| Pension and other postretirement remeasurement (gains) losses | 26 | 149 | 0.10 | 0.57 | |||||||||||||||||||
| Amortization of purchased intangibles | 71 | 83 | 0.26 | 0.31 | |||||||||||||||||||
| (Gain) loss on disposition | (1) | 5 | — | 0.02 | |||||||||||||||||||
| Income tax expense (benefit) | 34 | (68) | 0.13 | (0.26) | |||||||||||||||||||
Adjusted net income (loss) * | $ | 1,048 | $ | 214 | $ | 3.91 | $ | 0.81 | |||||||||||||||
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) | — | 1.5 | |||||||||||||||||||||
| Nine months ended September 30, | |||||||||||||||||||||||
Consolidated | Per diluted common share | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income (loss) applicable to common shareholders (1) | $ | 2,651 | $ | (1,776) | $ | 9.91 | $ | (6.76) | |||||||||||||||
| Net (gains) losses on investments and derivatives | 24 | 223 | 0.09 | 0.85 | |||||||||||||||||||
| Pension and other postretirement remeasurement (gains) losses | 15 | 56 | 0.06 | 0.21 | |||||||||||||||||||
| Amortization of purchased intangibles | 210 | 246 | 0.79 | 0.94 | |||||||||||||||||||
| (Gain) loss on disposition | (6) | 4 | (0.02) | 0.02 | |||||||||||||||||||
Non-recurring costs (2) | — | 90 | — | 0.34 | |||||||||||||||||||
| Income tax expense (benefit) | (50) | (133) | (0.19) | (0.51) | |||||||||||||||||||
Adjusted net income (loss) * (1) | $ | 2,844 | $ | (1,290) | $ | 10.64 | $ | (4.91) | |||||||||||||||
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) | — | 1.9 | |||||||||||||||||||||
_____________
(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) Relates to settlement costs for non-recurring litigation that is outside of the ordinary course of business.
10
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 September 30, | ||||||||||
| 2024 | 2023 | ||||||||||
Return on Allstate common shareholders’ equity | |||||||||||
Numerator: | |||||||||||
| Net income (loss) applicable to common shareholders | $ | 4,111 | $ | (2,079) | |||||||
Denominator: | |||||||||||
Beginning Allstate common shareholders’ equity | $ | 12,592 | $ | 15,713 | |||||||
Ending Allstate common shareholders’ equity (1) | 18,876 | 12,592 | |||||||||
Average Allstate common shareholders’ equity | $ | 15,734 | $ | 14,153 | |||||||
| Return on Allstate common shareholders’ equity | 26.1 | % | (14.7) | % | |||||||
| ($ in millions) | For the twelve months ended September 30, | ||||||||||
| 2024 | 2023 | ||||||||||
| Adjusted net income (loss) return on Allstate common shareholders’ equity | |||||||||||
| Numerator: | |||||||||||
| Adjusted net income (loss) * | $ | 4,385 | $ | (1,641) | |||||||
Denominator: | |||||||||||
Beginning Allstate common shareholders’ equity | $ | 12,592 | $ | 15,713 | |||||||
| Less: Unrealized net capital gains and losses | (2,512) | (2,929) | |||||||||
Adjusted beginning Allstate common shareholders’ equity | 15,104 | 18,642 | |||||||||
Ending Allstate common shareholders’ equity (1) | 18,876 | 12,592 | |||||||||
| Less: Unrealized net capital gains and losses | 361 | (2,512) | |||||||||
Adjusted ending Allstate common shareholders’ equity | 18,515 | 15,104 | |||||||||
Average adjusted Allstate common shareholders’ equity | $ | 16,810 | $ | 16,873 | |||||||
| Adjusted net income (loss) return on Allstate common shareholders’ equity * | 26.1 | % | (9.7) | % | |||||||
_____________
(1) Excludes equity related to preferred stock of $2,001 million as of September 30, 2024 and 2023.
11
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 September 30, | Nine months ended September 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Combined ratio | 96.4 | 103.4 | 96.9 | 109.8 | |||||||||||||||||||
| Effect of catastrophe losses | (12.4) | (9.6) | (11.4) | (15.5) | |||||||||||||||||||
| Effect of prior year non-catastrophe reserve reestimates | (0.4) | (1.4) | — | (1.1) | |||||||||||||||||||
| Effect of amortization of purchased intangibles | (0.4) | (0.5) | (0.4) | (0.5) | |||||||||||||||||||
| Underlying combined ratio* | 83.2 | 91.9 | 85.1 | 92.7 | |||||||||||||||||||
| Effect of prior year catastrophe reserve reestimates | (0.1) | 0.1 | (0.8) | — | |||||||||||||||||||
| Allstate Protection - Auto Insurance | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Combined ratio | 94.8 | 102.1 | 95.6 | 104.9 | |||||||||||||||||||
| Effect of catastrophe losses | (3.0) | (2.6) | (2.7) | (2.7) | |||||||||||||||||||
| Effect of prior year non-catastrophe reserve reestimates | 0.6 | (0.3) | 1.0 | (0.5) | |||||||||||||||||||
| Effect of amortization of purchased intangibles | (0.4) | (0.4) | (0.4) | (0.5) | |||||||||||||||||||
| Underlying combined ratio* | 92.0 | 98.8 | 93.5 | 101.2 | |||||||||||||||||||
| Effect of prior year catastrophe reserve reestimates | (0.1) | 0.1 | (0.1) | (0.1) | |||||||||||||||||||
| Allstate Protection - Homeowners Insurance | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Combined ratio | 98.2 | 104.4 | 97.5 | 122.8 | |||||||||||||||||||
| Effect of catastrophe losses | (36.2) | (29.6) | (34.7) | (52.1) | |||||||||||||||||||
| Effect of prior year non-catastrophe reserve reestimates | 0.4 | (1.5) | 1.1 | (0.9) | |||||||||||||||||||
| Effect of amortization of purchased intangibles | (0.3) | (0.4) | (0.3) | (0.4) | |||||||||||||||||||
| Underlying combined ratio* | 62.1 | 72.9 | 63.6 | 69.4 | |||||||||||||||||||
| Effect of prior year catastrophe reserve reestimates | — | 0.6 | (2.8) | 0.7 | |||||||||||||||||||
# # # # #
12