Allstate : Q4 2024 Earnings Call Presentation

Published: 2025-02-05 23:20:04 ET ALL

The Allstate Corporation

Fourth Quarter 2024 Earnings Presentation

02.06.2025

Allstate Delivers Excellent Returns While Advancing Strategy

Allstate's Strategy To Create Shareholder Value

Increase Personal

Property-Liability Market Share

Leveraging Allstate brand,

customer base and capabilities

Expand Protection

Services

2024 performance highlights

The Allstate Corporation 2025

PAGE 2

Allstate Produced Strong Results and Generated Attractive Returns on Capital

($ in millions, except per share data and ratios)

Full Year

Results

Total

revenues:

$64,106

(+12.3% to prior year)

Growth in both auto and homeowners insurance

Property-Liability insurance premiums

Accident and health insurance premiums and contract charges Net investment income

Three months ended

December 31,

2024

Change from

prior year

13,933

10.6%

482

3.2%

833

37.9%

Twelve months ended

December 31,

2024 Change from prior year

$53,866 11.2%

1,921 4.1%

3,092 24.8%

Net income

applicable to

common

shareholders:

$4,550

Net income applicable to common shareholders

1,899

30.1%

Adjusted net income*

2,062

33.8%

Per diluted common share(1)

Property-Liability underwriting

profit improvement and higher

Net income

investment income

7.07

28.1%

Adjusted net income*

7.67

31.8%

4,550NM

4,906NM

16.99NM

18.32NM

Return

Net income

25.8%

27.8 pts

Allstate common

shareholders'

equity

Adjusted net income*

26.8%

25.3 pts

NM = Not meaningful

shares are anti-dilutive and are therefore excluded from the calculation

The Allstate Corporation 2025

PAGE 3

Transformative Growth Improves Customer Value and Expands Customer Access

Multi-year initiative to build a low-cost digital insurer with broad distribution

Transformative Growth:

Key accomplishments:

Improve

Customer

Value

Expand

Customer

Access

Broader distribution supports increase from 2019 to 2024

Exclusive agent

Independent agent

Direct

Personal lines new issued applications

5.5 million

9.7 million

Personal lines policies in force

33.5 million

37.3 million

The Allstate Corporation 2025

PAGE 4

Successful Execution of Profit Improvement Plan Generated Strong Underwriting Fourth Quarter Results

Underwriting improvement reflects successful execution of the auto profit improvement plan

Income highlights

(in millions)

Var To PY

Property-Liability underwriting income

$1,832

$507

‒ Auto Insurance

$603

$510

‒ Homeowners Insurance

$1,070

($99)

‒ All Other(1)

$159

$96

Property-Liability combined ratio

86.9

(2.6) pts

‒ Auto Insurance

93.5

(5.4) pts

‒ Homeowners Insurance

69.8

7.8 pts

‒ All Other(1)

84.7

(8.7) pts

(1) Results include other personal lines, commercial, other business lines, Answer Financial and Run-Off Property-Liability

The Allstate Corporation 2025

PAGE 5

Auto Profit Improvement Restored Target Margins

Allstate Protection auto profitability

120.0

116.6

115.0

Favorable 2024 prior quarter severity

110.0

development benefited the fourth quarter

recorded combined ratio by 1.5 points

110.0

106.5

107.3

106.8

105.0

102.8

103.2

100.7

100.0

95.4

95.0

94.8

95.0

93.0

90.0 86.0

85.0

80.0

75.0

92.4

85.1

92.5

103.2 104.2 103.2 103.9 101.0 100.7

99.9

98.2

94.1

92.4

92.6

94.5

Year-end

2019

2020

2021

2022

2023

2024

Combined Ratio

93.0

86.0

95.4

102.1

107.9

117.4

112.6

104.4

108.3

102.1

98.9

96.0

95.9

94.8

93.5

- as reported

Underlying combined ratio* (2022-2024 adjusted at full year average severity level)(1)

Catastrophe losses, PYRR and APIA(2)

The Allstate Corporation 2025

PAGE 6

Homeowners Insurance Generates Attractive Returns

Net written premium growth of 15.3% in the fourth quarter primarily driven by higher average premiums and policies in force growth

Fourth quarter profitability reflects favorable underlying performance partially offset by higher catastrophe losses mostly attributed to hurricane losses

Allstate Protection homeowners

statistics

Var

Allstate Protection homeowners combined ratio components

Q4 2024

to PY

2024

to PY

Written premium

$3,624

15.3%

$14,416

14.6%

($ in millions)

Average premium -

2,111

12.8%

2,021

11.5%

gross written ($)(1)

Underwriting income

1,070

-8.5%

1,319

($ in millions)

90.6

29.5

2014-2023 Average: ~92

93.6

88.4

90.0

96.7

93.6

29.4

24.8

27.7

28.0

23.3

106.8

39.5

90.1

27.6

62.0

0.7

69.8

10.3

Combined Ratio

69.8

7.8 pts

90.1

(16.7) pts

Catastrophe Loss

8.9

8.2 pts

27.8

(10.8) pts

Ratio

Underlying

59.5

(1.8) pts

62.5

(4.8) pts

Combined Ratio*

61.1

64.2

63.6

62.3

68.7

70.3

67.3

62.5

61.3

59.5

2017

2018

2019

2020

2021

2022

2023

2024

2023

2024

Underlying combined ratio*

Catastrophe losses, PYRR and APIA(2)

(1)

Reflects Allstate brand homeowners

(2)

Reflects combined ratio impact of catastrophe losses, prior year reserve reestimates and amortization of purchased intangibles

The Allstate Corporation 2025

PAGE 7

Underwriting, Exposure Management and Robust Reinsurance Program Mitigate Impact of California Wildfire Losses

Allstate California homeowners market share at year-end(1)

California wildfire estimated impact

Homeowners market share has been reduced

by over 50% since 2008

12.6%

9.3%

7.9%

5.8%

Gross

$2.0B

Losses

Reinsurance

$0.9B

Recoveries

Net

Losses, Pre-

$1.1B

Tax

2008

2013

2018

2023

Due to comprehensive reinsurance, each additional $100 million in gross losses results in $10 million in net losses

The Allstate Corporation 2025

PAGE 8

Auto Policies In Force Below Prior Year; Homeowners Growth Continues

Auto policies in force decreased

Homeowners growth driven by increased

as new business growth was more than

new business and stable retention

offset by lower retention

Property-Liability policies in force - Fourth quarter, 2024

Variance to prior year

Auto

Homeowners

Property-

Liability

Other Property-Liability(1)

5.1

Policies in force

Homeowners

Total

policies

(347)

173

(238)

7.5

(in thousands)

force:

Auto24.9

37.5

million

- % Increase / (Decrease)

(1.4)

2.4

(0.6)

Focus on growing insurance policies in force

(1) Results include other personal lines and commercial

Note: Starting February, Property-Liability disclosures will be expanded to include monthly policies in force and will be posted on the investor relations

website to provide additional information on growth trends. Disclosures will be posted on the third Thursday of every month

The Allstate Corporation 2025

PAGE 9

Income from Investment Portfolio Increased

Market-based benefiting from portfolio growth and higher fixed income yields while Performance-based results included broad-based valuation increases

Net investment income and earned yield

($ in millions)

Market-based (MB) equity investments

increased to $3.3B or 5% of the

portfolio at year-end 2024

Portfolio asset allocations(3)

As of 12/31/2024

1,000

750

500

250

(250)

Fixed Income Earned Yield(1)

764

783

833

712

689

143

167

610

604

201

575

107

186

127

126

536

567

604

626

667

708

727

507

2023

2024

Market-based

Performance-based

Expense ex ILE(2)

3.4

3.6

3.7

4.0

4.1

4.3

4.4

$72.6 billion portfolio

MB interest-bearing: Investment

MB equity investments

grade, government and short-term

Performance-based

MB interest-bearing:

Below investment grade

Fixed income portfolio duration increased

from 4.8 to 5.3 years in 2024

The Allstate Corporation 2025

PAGE 10

Disclaimer

The Allstate Corporation published this content on February 06, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 06, 2025 at 04:19:04.749.