Allstate : Q1 2025 Investor Supplement

Published: 2025-04-30 17:15:42 ET ALL

Published on 04/30/2025 at 17:15

‌The Allstate Corporation

The condensed consolidated financial statements and financial exhibits included herein are unaudited and should be read in conjunction with the consolidated financial statements and notes thereto included in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.

Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*). These measures are defined on the pages "Definitions of Non-GAAP Measures" and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.

Consolidated Operations

Protection Services

Condensed Consolidated Statements of Operations

Segment Results

Contribution to Income

Book Value per Common Share and Debt to Capital

Allstate Health and Benefits

Return on Allstate Common Shareholders' Equity

Segment Results and Other Statistics

Policies in Force

Corporate and Other

Property-Liability

Segment Results

Results

Allstate Protection

Investments

Profitability Measures

Investment Position and Results

Impact of Net Rate Changes Implemented on Premiums Written

Investment Position and Results by Strategy

Auto Profitability Measures and Statistics

Homeowners Profitability Measures and Statistics

Definitions of Non-GAAP Measures

16,17

Glossary

‌Investor Supplement - First Quarter 2025 Table of Contents

Items included in the glossary are denoted with a caret (^) the first time used.

‌Condensed Consolidated Statements of Operations

(In millions, except per share data)

Three months ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2025

2024

Revenues

Property and casualty insurance premiums ^

$ 14,698

$ 14,591

$ 14,333

$ 13,952

$ 13,512

Accident and health insurance premiums and contract charges ^

487

482

487

474

478

Other revenue ^

762

801

781

679

669

Net investment income

854

833

783

712

764

Net gains (losses) on investments and derivatives

(349)

(201)

243

(103)

(164)

Total revenues

16,452

16,506

16,627

15,714

15,259

Costs and expenses

Property and casualty insurance claims and claims expense

10,815

9,024

10,409

10,801

9,501

Accident, health and other policy benefits

333

337

317

291

296

Amortization of deferred policy acquisition costs

2,087

2,062

2,037

2,001

1,939

Operating costs and expenses

2,245

2,505

2,217

2,019

1,885

Pension and other postretirement remeasurement (gains) losses

(52)

(9)

(2)

Restructuring and related charges

Amortization of purchased intangibles

Interest expense

100

101

104

Total costs and expenses

15,733

14,057

15,209

15,284

13,795

Income from operations before income tax expense

719

2,449

1,418

430

1,464

Income tax expense

123

559

254

266

Net income

596

1,890

1,164

347

1,198

Less: Net income (loss) attributable to noncontrolling interest

(38)

(26)

(20)

Net income attributable to Allstate

595

1,928

1,190

331

1,218

Less: Preferred stock dividends

Net income applicable to common shareholders

$ 566

$ 1,899

$ 1,161

$ 301

$ 1,189

Earnings per common share

Net income applicable to common shareholders per common share - Basic

$ 2.13

$ 7.16

$ 4.39

$ 1.14

$ 4.51

Weighted average common shares - Basic

265.3

265.1

264.6

264.1

263.5

Net income applicable to common shareholders per common share - Diluted

$ 2.11

$ 7.07

$ 4.33

$ 1.13

$ 4.46

Weighted average common shares - Diluted

268.8

268.7

268.0

267.1

266.5

Cash dividends declared per common share

$ 1.00

$ 0.92

(In millions, except per share data)

Three months ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2025

2024

Contribution to income

Net income applicable to common shareholders

$ 566

$ 1,899

$ 1,161

$ 301

$ 1,189

Net (gains) losses on investments and derivatives

349

201

(243)

103

164

Pension and other postretirement remeasurement (gains) losses

(52)

(9)

(2)

Amortization of purchased intangibles

(Gain) loss on disposition

(10)

(1)

(4)

Income tax expense (benefit)

(103)

(46)

(35)

(49)

Adjusted net income *

$ 949

$ 2,062

$ 1,048

$ 429

$ 1,367

Income per common share - Diluted

Net income applicable to common shareholders

$ 2.11

$ 7.07

$ 4.33

$ 1.13

$ 4.46

Net (gains) losses on investments and derivatives

1.30

0.75

(0.91)

0.38

0.62

Pension and other postretirement remeasurement (gains) losses

0.29

(0.20)

0.10

(0.03)

(0.01)

Amortization of purchased intangibles

0.22

0.26

(Gain) loss on disposition

(0.04)

(0.02)

Income tax expense (benefit)

(0.39)

(0.17)

0.13

(0.13)

(0.18)

Adjusted net income *

$ 3.53

$ 7.67

$ 3.91

$ 1.61

$ 5.13

Weighted average common shares - Diluted

268.8

268.7

268.0

267.1

266.5

‌($ in millions, except per share data)

Book value per common share

March 31,

2025

Dec. 31,

2024

Sept. 30,

2024

June 30,

March 31,

2024

$ 16,638

2024

Numerator:

Allstate common shareholders' equity (1)

$ 20,054

$ 19,441 $ 18,876 $ 16,592

Denominator:

Common shares outstanding and dilutive potential common

shares outstanding (2)

268.8

268.7

268.3

267.0

267.2

Book value per common share

$ 74.61

$ 72.35

$ 70.35

$ 62.14

$ 62.27

Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities

Numerator:

Allstate common shareholders' equity (1)

$ 20,054

$ 19,441

$ 18,876

$ 16,592

$ 16,638

Less: Unrealized net capital gains and losses on fixed income securities

(351)

(779)

364

(939)

(813)

Adjusted Allstate common shareholders' equity

$ 20,405

$ 20,220

$ 18,512

$ 17,531

$ 17,451

Denominator:

Common shares outstanding and dilutive potential common shares outstanding (2)

268.8

268.7

268.3

267.0

267.2

Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities *

75.91

75.25

69.00

65.66

65.31

Total debt

8,086

8,085

8,083

8,082

7,938

Total capital resources

30,141

29,527

28,960

26,675

26,577

Ratio of debt to Allstate shareholders' equity

36.7 %

37.7 %

38.7 %

43.5 %

42.6 %

Ratio of debt to capital resources

26.8 %

27.4 %

27.9 %

30.3 %

29.9 %

(1)Excludes equity related to preferred stock of $2,001 million for all periods shown.

(2)Common shares outstanding were 265,115,277 and 264,969,685 as of March 31, 2025 and December 31, 2024, respectively.

‌($ in millions) As of or for the twelve months ended

Return on Allstate common shareholders' equity

Numerator:

March 31,

2025

Dec. 31,

2024

Sept. 30,

2024

June 30,

March 31,

2024

1,960

$ 15,524

(1,573)

17,097

16,638

(819)

17,457

$ 17,277

11.3 %

2024

Net income applicable to common shareholders

$ 3,927

$ 4,550

$ 4,111

$ 2,909

$ 1,219

Denominator:

Beginning Allstate common shareholders' equity

$ 16,638

$ 15,769

$ 12,592

$ 13,516

$ 15,524

Ending Allstate common shareholders' equity (1)

20,054

19,441

18,876

16,592

16,638

Average Allstate common shareholders' equity ^

$ 18,346

$ 17,605

$ 15,734

$ 15,054

$ 16,081

Return on Allstate common shareholders' equity

21.4

25.8

26.1

19.3

7.6

Adjusted net income return on Allstate common shareholders' equity

Numerator:

Adjusted net income *

$ 4,488

$ 4,906 $ 4,385 $ 3,551

Denominator:

Beginning Allstate common shareholders' equity Less: Unrealized net capital gains and losses

Adjusted beginning Allstate common shareholders' equity

$ 16,638

(819)

17,457

$ 15,769 $ 12,592 $ 13,516

(604) (2,512) (1,845)

16,373 15,104 15,361

Ending Allstate common shareholders' equity (1)

Less: Unrealized net capital gains and losses Adjusted ending Allstate common shareholders' equity

20,054

(351)

20,405

19,441 18,876 16,592

(771) 361 (938)

20,212 18,515 17,530

Average adjusted Allstate common shareholders' equity ^

$ 18,931

$ 18,293 $ 16,810 $ 16,446

Adjusted net income return on Allstate common shareholders' equity *

23.7 %

26.8 % 26.1 % 21.6 %

(1)Excludes equity related to preferred stock of $2,001 million for all periods shown.

Policies in force statistics (in thousands) (1)

Allstate Protection

Dec. 31,

2024

Sept. 30,

2024

June 30,

March 31,

2024

Auto

25,100

24,936

24,998

25,124

25,207

Homeowners

7,549

7,511

7,483

7,426

7,364

Other personal lines

4,874

4,870

4,877

4,871

4,849

Commercial lines

189

213

238

256

273

Total

37,712

37,530

37,596

37,677

37,693

March 31,

2025

Protection Services

Allstate Protection Plans

161,503

159,761

156,818

151,172

148,086

Allstate Dealer Services

3,690

3,710

3,703

3,733

3,758

Allstate Roadside

867

758

670

604

565

Allstate Identity Protection

2,648

2,511

2,538

2,510

3,031

Total

168,708

166,740

163,729

158,019

155,440

Allstate Health and Benefits

Employer voluntary benefits ^ (2)

3,553

3,464

3,556

3,577

3,594

Group health ^ (2)

138

140

148

146

Individual health ^

478

471

462

456

453

Total

4,169

4,075

4,158

4,181

4,193

Total policies in force

210,589

208,345

205,483

199,877

197,326

(1)Policy counts are based on items rather than customers.

A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy.

Lender-placed policies are excluded from policy counts because relationships are with the lenders.

Allstate Roadside reflects memberships in force and does not include their wholesale partners as the customer relationship is managed by the wholesale partner.

Allstate Dealer Services reflects service contracts and other products sold in conjunction with auto lending and vehicle sales transactions and do not include their third party administrators ("TPAs") as the customer relationship is managed by the TPAs.

Allstate Protection Plans represents active consumer product protection plans.

Allstate Identity Protection reflects individual customer counts for identity protection products.

Allstate Health and Benefits reflects certificate counts as opposed to group counts.

(2)Held for sale as of March 31, 2025. The sale of the empoyer voluntary benefits business closed on April 1, 2025.

‌Property-Liability Results

($ in millions, except ratios)

Three months ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2025

2024

Premiums written

$ 14,297

$ 13,757

$ 14,707

$ 14,279

$ 13,183

(Increase) decrease in unearned premiums

(272)

267

(1,075)

(921)

(237)

Other

(91)

(19)

(46)

Premiums earned

14,027

13,933

13,694

13,339

12,900

Other revenue

488

493

531

441

430

Claims and claims expense

(10,660)

(8,871)

(10,249)

(10,649)

(9,349)

Amortization of deferred policy acquisition costs

(1,732)

(1,699)

(1,696)

(1,673)

(1,608)

Operating costs and expenses

(1,701)

(1,966)

(1,710)

(1,537)

(1,417)

Restructuring and related charges

(16)

(6)

(23)

(15)

(7)

Amortization of purchased intangibles

(46)

(52)

(51)

Underwriting income (loss) (1)

$ 360

$ 1,832

$ 495

$ (145)

$ 898

Catastrophe losses

$ (2,202)

$ (410)

$ (1,703)

$ (2,120)

$ (731)

Claims expense excluding catastrophe expense ^

(734)

(758)

(736)

(713)

(696)

Operating ratios and reconciliations to underlying ratios

Loss ratio

76.0

63.7

74.9

79.8

72.4

Effect of catastrophe losses

(15.7)

(2.9)

(12.4)

(15.9)

(5.7)

Effect of non-catastrophe prior year reserve reestimates

1.7

(0.6)

(0.4)

0.5

(0.1)

Underlying loss ratio *

62.0

60.2

62.1

64.4

66.6

Expense ratio ^

21.4

23.2

21.5

21.3

20.6

Effect of amortization of purchased intangibles

(0.3)

(0.4)

(0.3)

Underlying expense ratio *

21.1

22.8

21.1

20.9

20.3

Effect of advertising expense

(3.7)

(4.7)

(3.8)

(3.0)

(2.2)

Effect of restructuring and related charges

(0.1)

Adjusted underwriting expense ratio *

17.3

18.0

17.2

17.8

18.0

Claims expense ratio excluding catastrophe expense ^

5.2

5.4

5.3

5.4

Adjusted expense ratio *

22.5

23.4

22.6

23.1

23.4

Combined ratio

97.4

86.9

96.4

101.1

93.0

Effect of catastrophe losses

(15.7)

(2.9)

(12.4)

(15.9)

(5.7)

Effect of non-catastrophe prior year reserve reestimates

1.7

(0.6)

(0.4)

0.5

(0.1)

Effect of amortization of purchased intangibles

(0.3)

(0.4)

(0.3)

Underlying combined ratio *

83.1

83.0

83.2

85.3

86.9

Effect of Run-off Property-Liability on combined ratio

0.1

0.5

(1)Underwriting income (loss)

Allstate Protection

$ 364

$ 1,837

$ 555

$ (142)

$ 903

Run-off Property-Liability

(4)

(5)

(60)

(3)

(5)

Property-Liability

$ 360

$ 1,832

$ 495

$ (145)

$ 898

Other financial information

Net investment income

$ 783

$ 757

$ 708

$ 643

$ 702

Income tax expense on operations

(227)

(596)

(217)

(113)

(308)

Net income (loss) attributable to noncontrolling interest, after-tax

(38)

(25)

(20)

Amortization of purchased intangibles

(46)

(52)

(51)

‌Allstate Protection Profitability Measures

($ in millions, except ratios) Three months ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2025

2024

Premiums written

Auto

$ 9,848

$ 9,116

$ 9,539

$ 9,284

$ 9,357

Homeowners

3,453

3,624

4,073

3,845

2,874

Other personal lines

729

746

817

845

660

Commercial lines

104

150

157

Other business lines ^

173

187

174

155

135

Total

$ 14,297

$ 13,757

$ 14,707

$ 14,279

$ 13,183

Net premiums earned

Auto

$ 9,347

$ 9,348

$ 9,270

$ 9,079

$ 8,778

Homeowners

3,657

3,548

3,403

3,255

3,154

Other personal lines

741

745

718

701

659

Commercial lines

113

131

151

158

169

Other business lines

169

161

152

146

140

Total

$ 14,027

$ 13,933

$ 13,694

$ 13,339

$ 12,900

Underwriting income (loss)

Auto

$ 816

$ 603

$ 486

$ 370

$ 351

Homeowners

(451)

1,070

(375)

564

Other personal lines

(65)

133

(18)

(55)

Commercial lines

(16)

(138)

(70)

Other business lines

Answer Financial

Total

$ 364

$ 1,837

$ 555

$ (142)

$ 903

Claims expense excluding catastrophe expense

$ 731

$ 756

$ 732

$ 711

$ 695

Operating ratios and reconciliations to underlying ratios

Loss ratio

76.0

63.6

74.4

79.8

72.4

Effect of catastrophe losses

(15.7)

(2.9)

(12.4)

(15.9)

(5.7)

Effect of non-catastrophe prior year reserve reestimates

1.7

(0.5)

0.1

0.5

(0.1)

Underlying loss ratio *

62.0

60.2

62.1

64.4

66.6

Expense ratio

21.4

23.2

21.5

21.3

20.6

Effect of amortization of purchased intangibles

(0.3)

(0.4)

(0.3)

Underlying expense ratio *

21.1

22.8

21.1

20.9

20.3

Effect of advertising expense

(3.7)

(4.7)

(3.8)

(3.0)

(2.2)

Effect of restructuring and related charges

(0.1)

Adjusted underwriting expense ratio *

17.3

18.0

17.2

17.8

18.0

Combined ratio

97.4

86.8

95.9

101.1

93.0

Underlying combined ratio *

83.1

83.0

83.2

85.3

86.9

Claims expense ratio excluding catastrophe expense

5.2

5.4

5.3

5.4

Number of

Three months ended March 31, 2025

Location

Number of

Three months ended December 31, 2024

Location

locations (1)Total (%) (2) (3)

specific (%) (4)

locations Total (%) (3)

specific (%)

Auto

1.4

4.3

0.9

4.8

Homeowners (5)

1.5

5.9

3.7

9.5

Number of

Three months ended September 30, 2024

Location

Number of

Three months ended June 30, 2024

Location

locations Total (%) (3)

specific (%)

locations Total (%) (3)

specific (%)

Auto

2.7

7.6

1.1

6.8

Homeowners (5)

2.9

16.3

1.2

10.8

(1)Refers to the number of U.S. states, the District of Columbia or Canadian provinces where rate changes have been implemented.

(2)Represents the impact in the locations where rate changes were implemented during the period as a percentage of total prior year-end premiums written.

(3)Implemented auto insurance rate increases totaled $545 million in the first quarter of 2025, after implementing $309 million, $919 million and $385 million in the fourth, third and second quarters of 2024, respectively.

(4)Represents the impact in the locations where rate changes were implemented during the period as a percentage of its respective total prior year-end premiums written in those same locations.

(5)Excludes the impact to average premium from inflation in insured home replacement costs and other aging factor adjustments, which could be significant.

‌Auto Profitability Measures and Statistics

($ in millions, except ratios) Three months ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2025

2024

Allstate Protection

Premiums written

$ 9,848

$ 9,116

$ 9,539

$ 9,284

$ 9,357

Net premiums earned

9,347

9,348

9,270

9,079

8,778

Underwriting income (loss)

816

603

486

370

351

Operating ratios and reconciliations to underlying ratios

Loss ratio

69.3

71.9

74.2

75.4

Effect of catastrophe losses

(2.2)

(0.6)

(3.0)

(3.9)

(1.2)

Effect of non-catastrophe prior year reserve reestimates ("PYRR")

2.5

0.4

0.6

1.9

0.7

Underlying loss ratio *

69.6

69.1

69.5

72.2

74.9

Expense ratio

22.0

24.2

22.9

21.7

20.6

Effect of amortization of purchased intangibles

(0.4)

(0.3)

(0.4)

Underlying expense ratio *

21.6

23.9

22.5

21.3

20.2

Combined ratio

91.3

93.5

94.8

95.9

96.0

Effect of catastrophe losses

(2.2)

(0.6)

(3.0)

(3.9)

(1.2)

Effect of non-catastrophe PYRR

2.5

0.4

0.6

1.9

0.7

Effect of amortization of purchased intangibles ("APIA")

(0.4)

(0.3)

(0.4)

Underlying combined ratio *

91.2

93.0

92.0

93.5

95.1

Annualized average earned premium ^ ($)

1,490

1,500

1,483

1,445

1,393

Average underlying loss (incurred pure premium) * ^ ($)

1,037

1,031

1,043

Average underlying loss (incurred pure premium) * (% change year-over-year)

(0.6)

(0.1)

(0.5)

3.4

Average underlying loss (incurred pure premium) and expense * ^ ($)

1,359

1,395

1,364

1,351

1,325

New issued applications by channel (in thousands) ^

Exclusive agency

748

671

675

628

605

Independent agency

686

562

597

562

555

Direct

757

579

620

538

510

Total

2,191

1,812

1,892

1,728

1,670

Allstate brand

Average premium - gross written ^ ($)

853

858

852

841

823

($ in millions, except ratios) Three months ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2025

2024

Allstate Protection

Premiums written

$ 3,453

$ 3,624

$ 4,073

$ 3,845

$ 2,874

Net premiums earned

3,657

3,548

3,403

3,255

3,154

Underwriting income (loss)

(451)

1,070

(375)

564

Operating ratios and reconciliations to underlying ratios

Loss ratio

91.8

46.9

76.3

90.3

60.3

Effect of catastrophe losses

(49.9)

(8.9)

(36.2)

(49.6)

(17.6)

Effect of non-catastrophe prior year reserve reestimates ("PYRR")

0.2

(1.1)

0.4

1.9

1.3

Underlying loss ratio *

42.1

36.9

40.5

42.6

44.0

Expense ratio

20.5

22.9

21.9

21.2

21.8

Effect of amortization of purchased intangibles

(0.2)

(0.3)

Underlying expense ratio *

20.3

22.6

21.6

20.9

21.5

Combined ratio

112.3

69.8

98.2

111.5

82.1

Effect of catastrophe losses

(49.9)

(8.9)

(36.2)

(49.6)

(17.6)

Effect of non-catastrophe PYRR

0.2

(1.1)

0.4

1.9

1.3

Effect of amortization of purchased intangibles ("APIA")

(0.2)

(0.3)

Underlying combined ratio *

62.4

59.5

62.1

63.5

65.5

New issued applications by channel (in thousands)

Exclusive agency

232

227

260

241

218

Independent agency

Direct

Total

320

318

362

334

291

Allstate brand

Average premium - gross written ($)

2,210

2,111

2,050

1,993

1,912

‌Protection Services Segment Results

($ in millions) Three months ended

March 31,

2025

Dec. 31,

2024

Sept. 30,

2024

June 30,

2024

March 31,

2024

Protection Services

Net premiums written

$ 657

$ 816

$ 678

$ 676

$ 627

Premiums earned

$ 671

$ 658

$ 639

$ 613

$ 612

Other revenue

128

148

110

Intersegment insurance premiums and service fees

Net investment income

Claims and claims expense

(161)

(160)

(166)

(157)

(158)

Amortization of deferred policy acquisition costs

(318)

(328)

(304)

(296)

(289)

Operating costs and expenses

(309)

(330)

(280)

(246)

(234)

Restructuring and related charges

(1)

Income tax expense on operations

(17)

(20)

(15)

(19)

(17)

Less: net income (loss) attributable to noncontrolling interest

(1)

Adjusted net income ^ (1)

Depreciation

Restructuring and related charges

Income tax expense on operations

Adjusted earnings before taxes, depreciation and restructuring *

$ 77

$ 76

$ 78

$ 80

$ 78

Allstate Protection Plans

Net premiums written

$ 487

$ 648

$ 519

$ 518

$ 470

Premiums earned

$ 510

$ 497

$ 480

$ 453

$ 439

Revenue ^

540

528

512

483

464

Claims and claims expense

(124)

(123)

(129)

(120)

(114)

Amortization of deferred policy acquisition costs

(210)

(219)

(196)

(188)

(180)

Other costs and expenses ^

(148)

(130)

(139)

(122)

(117)

Restructuring and related charges

(1)

Income tax expense on operations

(13)

(18)

(10)

(13)

(12)

Less: net income (loss) attributable to noncontrolling interest

(1)

Adjusted net income

$ 45

$ 37

$ 39

$ 41

$ 40

Allstate Dealer Services

Revenue

$ 146

$ 147

$ 146

$ 148

$ 146

Adjusted net income

Allstate Roadside

Revenue

$ 55

$ 54

$ 53

$ 51

$ 66

Adjusted net income

Arity

Revenue

$ 79

$ 121

$ 74

$ 52

$ 39

Adjusted net income (loss)

(6)

(3)

(2)

(4)

Allstate Identity Protection

Revenue

$ 40

$ 39

$ 37

$ 39

$ 38

Adjusted net income

(1)Adjusted net income is the GAAP segment measure.

($ in millions)

Three months ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2025

2024

Allstate Health and Benefits

Accident and health insurance premiums and contract

charges

$ 487

$ 482

$ 487

$ 474

$ 478

Other revenue (1)

131

144

123

121

134

Net investment income

Accident, health and other policy benefits

(333)

(337)

(317)

(291)

(296)

Amortization of deferred policy acquisition costs

(37)

(35)

(37)

(32)

(42)

Operating costs and expenses

(234)

(232)

(224)

(225)

Restructuring and related charges

(2)

(1)

Income tax expense on operations

(9)

(11)

(15)

Adjusted net income

$ 30

$ 35

$ 37

$ 58

$ 56

Interest credited to contractholder funds

(8)

(9)

(8)

(9)

Benefit ratio ^

66.7 %

68.0 %

63.4 %

59.7 %

60.0 %

Adjusted net income (loss)

Employer voluntary benefits

$ 22

$ 21

$ 19

$ 28

$ 17

Group health

Individual health

(4)

Total

$ 30

$ 35

$ 37

$ 58

$ 56

Premiums and contract charges

Employer voluntary benefits

$ 243

$ 248

$ 246

$ 248

Group health

124

123

120

118

Individual health

120

116

119

108

112

Total

$ 487

$ 482

$ 487

$ 474

$ 478

(1)Reflects commission revenue, administrative fees, agency fees and technology fees from the group health and individual health business.

($ in millions) Three months ended

March 31,

2025

Dec. 31,

2024

Sept. 30,

2024

June 30,

2024

March 31,

2024

Other revenue

$ 15

$ 16

$ 17

$ 19

$ 20

Net investment income

Operating costs and expenses

(32)

(35)

(39)

(47)

(42)

Restructuring and related charges

(3)

(1)

Interest expense

(100)

(101)

(104)

(98)

(97)

Income tax benefit on operations

Preferred stock dividends

(29)

(30)

(29)

Adjusted net loss

$ (97)

$ (106)

$ (110)

$ (104)

$ (106)

‌March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2025

2024

Investment position

Fixed income securities, at fair value

$ 51,993

$ 52,747

$ 53,961

$ 52,576

$ 50,777

Equity securities ^

4,465

4,463

2,091

2,216

2,383

Mortgage loans, net

770

784

765

815

Limited partnership interests ^

9,380

9,255

8,925

8,730

8,562

Short-term, at fair value

6,541

4,537

6,994

5,288

4,318

Other investments, net

901

824

866

979

1,004

Total

$ 74,050

$ 72,610

$ 73,602

$ 70,604

$ 67,859

Net investment income

Fixed income securities

$ 608

$ 614

$ 587

$ 571

$ 526

Equity securities

Mortgage loans

Limited partnership interests

194

160

138

103

199

Short-term investments

Other investments

Investment income, before expense

925

919

863

788

837

Investment expense

(71)

(86)

(80)

(76)

(73)

Net investment income

$ 854

$ 833

$ 783

$ 712

$ 764

Pre-tax yields on fixed income securities ^ (1)

4.4

4.3

4.1

Net gains (losses) on investments and derivatives, pre-tax by transaction type

Sales

$ (137)

$ (75)

$ 116

$ (90)

$ (111)

Credit losses

(76)

(3)

(12)

(16)

(115)

Valuation change of equity investments

(117)

(112)

119

Valuation change and settlements of derivatives

(19)

(11)

(15)

(8)

Total

$ (349)

$ (201)

$ 243

$ (103)

$ (164)

Total return on investment portfolio ^ (1)

Net investment income

1.2

1.1

1.0

1.1

Valuation-interest bearing

0.4

(2)

(2.1)

2.5

(0.3)

(0.7) (2)

Valuation-equity investments

(0.2)

(0.1)

0.1

Total

1.4

(1.1)

3.7

0.7

0.5 %

Fixed income securities portfolio duration ^ (in years) (1)

5.1

5.2

5.1

4.9

4.8

Fixed income securities portfolio duration including interest rate derivative positions (in years) (1)

5.1

5.3

5.0

4.9

Fixed income and short-term investments duration including interest rate derivative positions (in years) (1)

4.6

4.9

4.7

4.6

(1)Beginning in the third quarter of 2024 calculations include investments held for sale.

(2)Includes (0.1%) and (0.2%) impact related to losses recorded for variable interest in Reciprocal Exchanges in Q1 2025 and Q1 2024, respectively.

‌March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2025

2024

Investment Position

Market-based ^

Interest-bearing investments ^

$ 59,411

$ 58,068

$ 61,747

$ 58,781

$ 56,035

Equity securities

3,795

3,797

1,400

1,539

1,722

LP and other alternative investments ^

281

285

148

162

158

Total

$ 63,487

$ 62,150

$ 63,295

$ 60,482

$ 57,915

Performance-based ^

Private equity (1)

$ 8,393

$ 8,411

$ 8,191

$ 8,064

$ 7,891

Real estate

2,170

2,049

2,116

2,058

2,053

Total

$ 10,563

$ 10,460

$ 10,307

$ 10,122

$ 9,944

Investment income Market-based

Interest-bearing investments

$ 698

$ 705

$ 691

$ 649

$ 609

Equity securities

LP and other alternative investments (2)

(3)

Income for yield calculation

$ 719

$ 727

$ 708

$ 667

$ 626

Pre-tax yield (3)

4.4

4.5

4.4

4.3

Performance-based

Private equity

$ 103

$ 138

$ 130

$ 119

$ 196

Real estate

103

Investment income, before expense

206

192

155

121

211

Investee level expenses

(10)

(25)

(12)

(14)

(10)

Income for yield calculation

$ 196

$ 167

$ 143

$ 107

$ 201

Pre-tax yield

7.5

6.5

5.6

4.3

8.2

Total return on investment portfolio

Market-based (3)

1.5 % (4)(1.5) % 4.2 % 0.7 %

0.3 % (4)

Performance-based

1.6

2.1

1.5

1.0

2.3

Internal rate of return ^

Performance-based

10 year

11.2

11.4

11.2

11.5

11.7

5 year

12.2

12.1

11.5

11.6

12.1

3 year

5.4

7.3

9.4

11.7

14.3

1 year

4.5

6.3

4.3

4.9

5.6

(1)Includes infrastructure investments of $1.32 billion as of March 31, 2025.

(2)Net of any investee level expenses.

(3)Beginning in the third quarter of 2024 calculations include investments held for sale.

(4)Includes (0.1%) and (0.2%) impact related to losses recorded for variable interest in Reciprocal Exchanges in Q1 2025 and Q1 2024, respectively.

‌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 (loss) 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. A reconciliation of adjusted net income to net income (loss) applicable to common shareholders is provided in the schedule, "Contribution to Income".

Underlying loss ratio is a non-GAAP ratio, which is computed as the difference between three GAAP operating ratios: the loss ratio, the effect of catastrophes on the combined ratio, and the effect of prior year non-catastrophe reserve reestimates on the combined ratio. We believe that this ratio is useful to investors, and it is used by management to reveal the trends that may be obscured by catastrophe losses and prior year reserve reestimates. 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. 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 loss ratio. The underlying loss ratio should not be considered a substitute for the loss ratio and does not reflect the overall loss ratio of our business. A reconciliation of underlying loss ratio is provided in the schedules "Property-Liability Results", "Allstate Protection Profitability Measures", "Auto Profitability Measures" and "Homeowners Profitability Measures".

Underlying expense ratio is a non-GAAP ratio, which is computed as the difference between the expense ratio and the effect of amortization or impairment of purchased intangibles on the expense ratio. We believe that the measure provides investors with a valuable measure of ongoing performance because it reveals trends that may be obscured by the amortization or impairment of purchased intangible assets. Amortization or Impairment of purchased intangible assets is excluded because it relates to the acquisition purchase price and is not indicative of our 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 expense ratio. The underlying expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business. A reconciliation of underlying expense ratio is provided in the schedules "Property-Liability Results", "Allstate Protection Profitability Measures", "Auto Profitability Measures" and "Homeowners Profitability Measures".

Average underlying loss (incurred pure premium) and average underlying loss (incurred pure premium) and expense per policy are calculated as the underlying loss ratio and the underlying combined ratio (non-GAAP ratios), respectively, multiplied by the annualized GAAP earned premium ("annualized average earned premium"). We believe that these measures are useful to investors and are used by management for the same reasons noted above for the underlying loss and underlying combined ratios. The components of the calculation are available on the "Auto Profitability Measures and Statistics" page.

‌Adjusted underwriting expense ratio is a non-GAAP ratio, which is computed as the difference between the expense ratio and the effect of advertising expense, restructuring and related charges and amortization or impairment of purchased intangibles on the expense ratio. We believe that the measure provides investors with a valuable measure of ongoing performance because it reveals trends that may be obscured by the advertising expense, restructuring and related charges and amortization or impairment of purchased intangibles. Advertising expense is excluded as it may vary significantly from period to period based on business decisions and competitive position. Restructuring and related charges are excluded because these items are not indicative of our business results or trends. Amortization or impairment of purchased intangible assets is excluded because it relates to the acquisition purchase price. These are not indicative of our business results or trends. A reduction in expenses enables investment flexibility that can drive growth. 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 expense ratio. The adjusted underwriting expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business.

Adjusted expense ratio is a non-GAAP ratio, which is computed as the combination of the adjusted underwriting expense ratio and claims expense ratio excluding catastrophe expense. We believe it is useful for investors to evaluate this ratio which is linked to a long-term expense ratio improvement commitment through 2024. The most directly comparable GAAP measure is the expense ratio. The adjusted expense ratio should not be considered a substitute for the expense ratio and does not reflect the overall expense ratio of our business.

Underlying combined ratio is a non-GAAP ratio, which is the sum of the underlying loss and underlying expense ratios. 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. 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. A reconciliation of the underlying combined ratio to combined ratio is provided in the schedule "Property-Liability Results", "Auto Profitability Measures" and "Homeowners Profitability Measures".

Protection Services adjusted earnings before taxes, depreciation and restructuring, is a non-GAAP measure, which is computed as adjusted net income (loss), excluding taxes, depreciation and restructuring. Adjusted net income (loss) is the GAAP measure that is most directly comparable to adjusted earnings before taxes, depreciation and restructuring. We use adjusted earnings before taxes, depreciation and restructuring, as an important measure to evaluate Protection Services' results of operations. We believe that the measure provides investors with a valuable measure of Protection Services' ongoing performance because it reveals trends that may be obscured by the taxes, depreciation and restructuring expenses. Taxes, depreciation and restructuring are excluded because these are not directly attributable to the underlying operating performance of Protection Services' segment. Adjusted earnings before taxes, depreciation and restructuring highlights the results from ongoing operations and the underlying profitability of our business and is used by management along with the other components of adjusted net income (loss) to assess our performance. We believe it is useful for investors to evaluate adjusted net income (loss), adjusted earnings before taxes, depreciation and restructuring, and their components separately and in the aggregate when reviewing and evaluating Protection Services segment's performance. Adjusted earnings before taxes, depreciation and restructuring should not be considered a substitute for adjusted net income (loss) and does not reflect the overall profitability of our business. A reconciliation of adjusted net income (loss) to adjusted earnings before taxes, depreciation and restructuring, is provided in the schedule, "Protection Services Segment Results".

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 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. 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. A reconciliation of return on Allstate common shareholders' equity and adjusted net income return on Allstate common shareholders' equity can be found in the schedule, "Return on Allstate Common Shareholders' Equity".

Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a ratio that uses a non-GAAP measure. It is calculated by dividing Allstate common shareholders' equity after excluding the impact of unrealized net capital gains and losses on fixed income securities by total common shares outstanding plus dilutive potential common shares outstanding. We use the trend in book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, in conjunction with book value per common share to identify and analyze the change in net worth applicable to management efforts between periods. We believe the non-GAAP ratio is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management, and we believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. We note that book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, is a measure commonly used by insurance investors as a valuation technique. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of unrealized net capital gains and losses on fixed income securities, should not be considered a substitute for book value per common share, and does not reflect the recorded net worth of our business. A reconciliation of book value per common share, excluding the impact of unrealized net capital gains on fixed income securities, and book value per common share can be found in the schedule, "Book Value per Common Share and Debt to Capital".

‌Consolidated Operations

Accident and health insurance premiums and contract charges are reported in the Allstate Health and Benefits segment and include employer voluntary benefits, group health and individual health products. Adjusted net income is the GAAP segment measure used for the Protection Services, Allstate Health and Benefits, and Corporate and Other segments.

Average Allstate common shareholders' equity and average adjusted Allstate common shareholders' equity are determined using a two-point average, with the beginning and ending Allstate common shareholders' equity and Allstate adjusted common shareholders' equity, respectively, for the twelve-month period as data points.

Other revenue primarily represents fees collected from policyholders relating to premium installment payments, commissions on sales of non-proprietary products, sales of identity protection services, fee-based services and other revenue transactions.

Property and casualty insurance premiums are reported in the Allstate Protection and Protection Services segments and include auto, homeowners, other personal lines, commercial lines and other business lines insurance products, as well as consumer product protection plans, roadside assistance and automotive protection and insurance products.

Property-Liability

Annualized average earned premium is calculated by annualizing net earned premium reported in the quarter and year-to-date divided by policies in force at quarter end.

Average premium - gross written: Gross premiums written divided by issued item count. Gross premiums written include the impacts from discounts, surcharges and ceded reinsurance premiums and exclude the impacts from mid-term premium adjustments and premium refund accruals. Average premiums represent the appropriate policy term for each line, which is generally 6 months for auto and 12 months for homeowners.

Claims expense ratio excluding catastrophe expense: Incurred loss adjustment expenses, net of reinsurance, excluding expenses related to catastrophes. These expenses are embedded within the loss ratio. Expense ratio: Other revenue is deducted from other costs and expenses in the expense ratio calculation.

New issued applications: Item counts of automobile and homeowner insurance applications for insurance policies that were issued during the period, regardless of whether the customer was previously insured by another Allstate Protection brand.

Other business lines primarily represent commissions earned and other costs and expenses for Ivantage, non-proprietary life and annuity products, and lender-placed products.

Protection Services

Other costs and expenses may include amortization of deferred policy acquisition costs, operating costs and expenses, and restructuring and related charges.

Revenue may include net premiums earned, intersegment insurance premiums and service fees, other revenue, revenue earned from external customers and net investment income.

Allstate Health and Benefits

Benefit ratio is accident, health and other policy benefits less interest credited to contractholder funds, divided by premiums and contract charges. Employer voluntary benefits includes supplemental life and health products offered through workplace enrollment.

Group health includes health products and administrative services sold to employers.

Individual health includes short-term medical and other health products sold directly to individuals.

Investments

Duration measures the price sensitivity of assets and liabilities to changes in interest rates.

Equity securities include investments in exchange traded and mutual funds whose underlying investments are fixed income securities.

Interest-bearing investments comprise fixed income securities, mortgage loans, short-term investments, and other investments including bank loans and derivatives.

Internal rate of return is one of the measures we use to evaluate the performance of these investments. The IRR represents the rate of return on the investments considering the cash flows paid and received and, until the investment is fully liquidated, the estimated value of investment holdings at the end of the measurement period. The calculated IRR for any measurement period is highly influenced by the values of the portfolio at the beginning and end of the period, which reflect the estimated fair values of the investments as of such dates. As a result, the IRR can vary significantly for different measurement periods based on macroeconomic or other events that impact the estimated beginning or ending portfolio value, such as the global financial crisis. Our IRR calculation method may differ from those used by other investors. The timing of the recognition of income in the financial statements may differ significantly from the cash distributions and changes in the value of these investments.

Limited partnership interests: Income from equity method of accounting LP is generally recognized on a three-month delay due to the availability of the investee financial statements.

LP and other investments comprise limited partnership interests and other alternative investments, including real estate investments classified as other investments. Market-based investments include publicly traded equity securities classified as limited partnerships.

Market-based strategy seeks to deliver predictable earnings aligned to business needs and take advantage of short-term opportunities primarily through public and private fixed income investments and public equity securities.

Performance-based strategy seeks to deliver attractive risk-adjusted returns and supplement market risk with idiosyncratic risk primarily through investments in private equity, including infrastructure investments, and real estate, most of which were limited partnerships.

Pre-tax yields: Quarterly pre-tax yield is calculated as annualized quarterly investment income, before investment expense divided by the average of the ending investment balances of the current and prior quarter. Year-to-date pretax yield is calculated as annualized year-to-date investment income, before investment expense divided by the average of investment balances at the beginning of the year and the end of each quarter during the year. For the purposes of the pre-tax yield calculation, income for directly held real estate and other investments is net of investee level expenses (asset level operating expenses reported in investment expense). Fixed income securities investment balances exclude unrealized capital gains and losses. Equity securities investment balances use cost in the calculation.

Total return on investment portfolio is calculated from GAAP results, including the total of net investment income, net gains and losses on investments and derivative instruments, the change in unrealized net capital gains and losses, and the change in the difference between fair value and carrying value of mortgage and bank loans divided by the average fair value balances.

Disclaimer

The Allstate Corporation published this content on April 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 21:12 UTC.