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好事達報告2024年第三季度業績
儘管災難損失增加，但仍能獲得優異的回報
伊利諾伊州NORTHBROOk，2024年10月30日 - 好事達公司（紐交所：所有板塊）今天公佈了2024年第三季度的財務業績。
好事達公司財務摘要 | |||||||||||||||||||||||
| 截至9月30日的三個月， | 截至9月30日的九個月 | ||||||||||||||||||||||
| (單位：百萬美元，每股數據和比率) | 2024 | 2023 | % / 點 變更 | 2024 | 2023 | % / 點 變更 | |||||||||||||||||
| 營業收入合計 | $ | 16,627 | $ | 14,497 | 14.7 | % | $ | 47,600 | $ | 42,262 | 12.6 | % | |||||||||||
| 淨利潤（虧損）適用於普通股股東 | 1,161 | (41) | 未出現數據 | 2,651 | (1,776) | 未出現數據 | |||||||||||||||||
每股稀釋普通股 (1) | 4.33 | (0.16) | 未出現數據 | 9.91 | (6.76) | 未出現數據 | |||||||||||||||||
| 淨利潤（調整後）* | 1,048 | 214 | 未出現數據 | 2,844 | (1,290) | 未出現數據 | |||||||||||||||||
每股稀釋後普通股* (1) | 3.91 | 0.81 | 未出現數據 | 10.64 | (4.91) | 未出現數據 | |||||||||||||||||
| 好事達普通股股東權益回報率（過去十二個月） | |||||||||||||||||||||||
| 淨利潤（虧損）適用於普通股股東 | 26.1 | % | (14.7) | % | 40.8 | ||||||||||||||||||
| 淨利潤（調整後）* | 26.1 | % | (9.7) | % | 35.8 | ||||||||||||||||||
| 每股普通股流通量（百萬美元） | 264.8 | 261.7 | 1.2 | % | |||||||||||||||||||
| 每股普通股賬面價值 | $ | 70.35 | $ | 47.79 | 47.2 | % | |||||||||||||||||
綜合保費收入 (2) | $ | 15,872 | $ | 14,425 | 10.0 | % | $ | 45,589 | $ | 41,021 | 11.1 | % | |||||||||||
| 財產責任保險保費收入 | 13,694 | 12,270 | 11.6 | % | 39,933 | 35,826 | 11.5 | % | |||||||||||||||
財產責任綜合比率 | |||||||||||||||||||||||
| 記錄 | 96.4 | 103.4 | (7.0) | 96.9 | 109.8 | (12.9) | |||||||||||||||||
| 基礎綜合比率* | 83.2 | 91.9 | (8.7) | 85.1 | 92.7 | (7.6) | |||||||||||||||||
| 災難損失 | $ | 1,703 | $ | 1,181 | 44.2 | % | $ | 4,554 | $ | 5,568 | (18.2) | % | |||||||||||
有效保單總數（以千計） | 205,483 | 190,089 | 8.1 | % | |||||||||||||||||||
(1)在報告淨虧損或調整後的淨虧損的週期中，由於所有可能具有稀釋效應的普通股股份是抗稀釋的，因此在計算每股攤薄收益時使用基本每股收益的加權平均股份。
(2)包括對好事達保護和保護服務部門的已投保費和對健康與福利部門的保費和合同費用。
* 本公告中使用的非美國通用會計原則（「非GAAP」）的衡量標準將會用星號標註，並在本文件的「非GAAP衡量標準定義」部分進行定義和與最近似的GAAP衡量標準調節。
Nm = 沒有意義
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2024年第三季度業績
•2024第三季度總收入爲166億美元，比上年同期增長21億美元，增幅爲14.7%，主要受財產責任保險賠付額增加的推動。
•2024年第三季度適用於普通股股東的淨利潤爲12億美元，而上一年同期淨虧損爲4100萬美元，財產責任覈保業績有所改善。調整後的淨利潤爲10億美元，每股攤薄收益爲3.91美元，而上一年同期調整後的淨利潤爲21400萬美元。
好事達在實施長期增長計劃的同時專注於近期表現，獲得了強勁的財務回報和改善的戰略地位，好事達的董事長、首席執行官和總裁湯姆·威爾遜表示。收入比去年同期增長了近15％，季度淨利潤爲12億美元，調整後的淨利潤淨資產回報率爲上一財年的26.1％。成功執行汽車保險利潤改進計劃有利於結果，創造了48600萬美元的汽車保險承保收入。儘管遭受了12億美元的災害損失，比去年同季度高出40％，但家庭保險業務仍在季度中實現了承保利潤。第三季度的成果包括颶風貝瑞爾、戴比、弗朗辛和海倫，我們動用了超過5,000人處理超過10000萬起索賠。颶風米爾頓在季度結束後不久影響了客戶，估計損失約1億美元。保護服務、健康福利和投資的強勁表現爲每股調整後淨利潤貢獻了3.91美元。
「在實施增加個人財產-責任業務市場份額和拓展保護方案的策略方面也取得了進展。 好事達保險汽車新業務銷售額增加了26％，並通過增加廣告和拓展分銷渠道。然而，在保留方面的損失反映出過去幾年裏顯著價格上漲的影響，這抵消了該增長，造成車險在冊套數下降。 房主保險利潤率提高，在冊保單高於去年同期2.5％。 保護計劃在國際上擴展，並收購了金斧頭以增強移動設備保護能力。 繼續實施卓越運營和增長策略將繼續創造股東價值，」Wilson總結道。
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•財產責任 2024年第三季度賺取的保費達到137億美元，比去年同期增長11.6%，主要受到平均保費水平提高的推動。本季度的核保收入爲4.95億美元，比去年同期的4.14億美元虧損好了9.09億美元。
| 財產責任成果 | |||||||||||||||||||||||
| 截至9月30日的三個月， | 截至9月30日的九個月 | ||||||||||||||||||||||
| （單位：百萬美元） | 2024 | 2023 | % / 點 變更 | 2024 | 2023 | % / 點 變更 | |||||||||||||||||
| 賺取的保費 | $ | 13,694 | $ | 12,270 | 11.6 | % | $ | 39,933 | $ | 35,826 | 11.5 | % | |||||||||||
| 保險收入 | $ | 14,707 | $ | 13,304 | 10.5 | % | $ | 42,169 | $ | 37,707 | 11.8 | % | |||||||||||
| 承保收入（損失） | $ | 495 | $ | (414) | 未出現數據 | $ | 1,248 | $ | (3,509) | 未出現數據 | |||||||||||||
| 記錄的綜合比率 | 96.4 | 103.4 | (7.0) | 96.9 | 109.8 | (12.9) | |||||||||||||||||
| 基礎綜合比率* | 83.2 | 91.9 | (8.7) | 85.1 | 92.7 | (7.6) | |||||||||||||||||
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。已實收保費同比增長10.5%，反映了好事達和國家大都會品牌的保費增加。
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。財產責任合併比率第四季度爲96.4，前九個月爲96.9。與去年相比，由於更高的平均賺取保費和改善的基礎損失經驗完全抵消了第三季度的災難損失和廣告費用的增加，這分別好了7.0和12.9個點。
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◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。好事達保險汽車保護 保險業績反映了成功執行全面計劃恢復利潤率。盈利能力的提高支持了在風險適當的州和風險區域增加投資。
| 好事達保險汽車保護結果 | |||||||||||||||||||||||
| 截至9月30日的三個月， | 截至9月30日的九個月 | ||||||||||||||||||||||
| （以百萬美元爲單位，除了比率） | 2024 | 2023 | % / 點 變更 | 2024 | 2023 | % / 點 變更 | |||||||||||||||||
| 賺取的保費 | $ | 9,270 | $ | 8,345 | 11.1 | % | $ | 27,127 | $ | 24,374 | 11.3 | % | |||||||||||
| 保險收入 | 9,539 | 8,770 | 8.8 | 28,180 | 25,388 | 11.0 | |||||||||||||||||
| 有效保單數量（以千計） | 24,998 | 25,376 | (1.5) | ||||||||||||||||||||
| 記錄的綜合比率 | 94.8 | 102.1 | (7.3) | 95.6 | 104.9 | (9.3) | |||||||||||||||||
| 基礎綜合比率* | 92.0 | 98.8 | (6.8) | 93.5 | 101.2 | (7.7) | |||||||||||||||||
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。已賺保費同比增長11.1%，增長主要受到費率上漲的推動，部分抵消了在保單數量下降1.5%的影響。
◦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