The Allstate Corporation released its financial results for the third quarter of 2024, showing a revenue increase of 14.7% to $16.6 billion compared to $14.5 billion in the same quarter last year.
Year-to-date consolidated revenue reached $47.6 billion, up 12.6% from $42.3 billion in the prior year. Net income for common shareholders was reported at $1.2 billion for the quarter, rebounding from a loss of $41 million in Q3 2023, while adjusted net income reached $1 billion compared to $214 million in the prior-year period.
Chair, CEO, and president Tom Wilson (pictured above) attributed the quarterly performance to Allstate's focus on both short-term financial performance and a long-term growth strategy.
“Revenues increased by almost 15% from the prior year, net income was $1.2 billion for the quarter and adjusted net income return on equity* was 26.1% for the prior twelve months," Wilson said in the company’s news release.
The company’s auto insurance profit improvement plan contributed $486 million in underwriting income, while its homeowners insurance line achieved an underwriting profit despite $1.2 billion in catastrophe losses—an increase of 40% over the prior-year quarter.
Third-quarter results accounted for Hurricanes Beryl, Debby, Francine, and Helene, with over 5,000 personnel handling more than 100,000 claims. Hurricane Milton, which struck shortly after the quarter ended, incurred estimated losses of about $100 million.
Allstate’s combined ratio for property-liability insurance improved to 96.4%, down from 103.4% in Q3 2023, while the underlying combined ratio decreased to 83.2% from 91.9%.
Catastrophe losses totaled $1.7 billion for the quarter, up 44.2% from $1.2 billion in the prior-year quarter. The company reported an 8.1% increase in total policies in force, reaching 205,483,000 by the end of September.
Wilson noted strong contributions from Allstate’s Protection Services, Health and Benefits, and Investments divisions, with adjusted net income reaching $3.91 per share.
“Progress was also made on implementing the strategy to increase market share in personal Property-Liability and expand protection solutions,” he said. New auto insurance business sales under Allstate Protection grew 26%, driven by expanded advertising and distribution, although retention losses related to recent price increases resulted in a decline in overall auto policies in force.
Homeowners insurance margins showed improvement, with policies in force up by 2.5% from the previous year.
Wilson highlighted growth initiatives in the Protection Plans segment, including an international expansion and the acquisition of Kingfisher to enhance mobile device protection services.
“Operational excellence and implementation of the growth strategy will continue to create shareholder value,” Wilson said.
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