Q4 2024 Allstate Corp Earnings Call Transcript
Key Points
- Allstate Corp (ALL) reported a significant increase in total revenues, reaching $16.5 billion in the fourth quarter, up 11.3% compared to the prior year quarter.
- The company achieved a strong adjusted net income return on equity of 26.8% over the last 12 months.
- Successful execution of the auto profit improvement plan resulted in a substantial increase in auto insurance underwriting income, improving by $510 million compared to the prior year quarter.
- Homeowners insurance produced attractive returns with a combined ratio of 90.1% for the full year 2024, in line with the company's low 90s target.
- The sale of group health and employee voluntary benefits businesses is expected to generate $3.25 billion in proceeds, representing attractive valuation multiples.
- Increased catastrophe losses led to a $99 million decrease in homeowners insurance underwriting income compared to the prior year quarter.
- Auto insurance policies in force declined by 1.4% due to a decrease in customer retention, particularly in states with large recent rate increases.
- The California wildfires resulted in estimated gross losses of $2 billion, with net losses expected to be $1.1 billion after reinsurance recoveries.
- Retention has been adversely impacted by significant rate increases over the past few years, particularly in states like New York and New Jersey.
- Despite strong new business trends, overall auto units declined year-over-year due to retention challenges.
Good day and thank you for standing by. Welcome to Allstate's third-quarter earnings investor call. (Operator Instructions) As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Allister Gobin, Head of Investor Relations. Please go ahead, sir.
Thank you, Jonathan. Good morning. Welcome to Allstate's Fourth Quarter 2024 Earnings Conference Call. Yesterday, following the close of the market, we issued our news release and investor supplement, and posted related material on our website at allstateinvestors.com. Our management team will provide perspective on our strategy and an update on results.
After prepared remarks, we will have a question-and-answer session.
As noted on the first slide of the presentation, our discussion will contain non-GAAP measures for which there are reconciliations in the news release and investor supplement and forward-looking statements about Allstate's operations. Allstate's results may differ materially from
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