Core Insights - The Allstate Corporation has increased its quarterly dividend by 8.7% to $1 per share, reflecting a strong commitment to shareholder returns [1][2][3] - Allstate's current dividend yield stands at 2.12%, significantly higher than the industry average of 0.26%, indicating confidence in its cash flow and future prospects [2] - The company has a history of consistent dividend growth, having raised its dividend five times in the past five years, which signals strong financial health [3] Dividend and Share Repurchase - The increased dividend will be paid on April 1, 2025, to shareholders of record as of March 10, 2025 [2] - Allstate has also announced a total of $29.3 million in dividends for preferred stock for the period from January 15 to April 14, 2025, payable on April 15 [5] - A new $1.5 billion share repurchase program has been approved, effective through September 30, 2026, following the expiration of a previous $5 billion buyback authorization [6] Strategic Focus and Growth Drivers - Allstate is focusing on its core strengths by divesting underperforming segments, including the sale of its Employer Voluntary Benefits and Group Health businesses for $2 billion and $1.25 billion, respectively [8] - The company aims to improve efficiency and profitability through cost-cutting measures and reinvestment in technology and product innovation [9] - Premium growth has been robust, with net premiums earned increasing by 13.9% in 2021, 8.7% in 2022, 10.4% in 2023, and 11.3% in 2024, showcasing the effectiveness of its growth strategy [10] Earnings Estimates and Valuation - The Zacks Consensus Estimate for Allstate's adjusted earnings in 2025 is $18.74 per share, reflecting a 2.3% year-over-year growth, with further growth of 15% expected in 2026 [11] - The stock is currently trading at a forward earnings multiple of 9.82X, lower than its five-year median of 10.89X and the industry average of 29.16X, indicating it is attractively valued [12] Market Challenges - Allstate faces challenges from intense competition in the insurance market, which may affect its pricing strategy and customer retention [13] - As of December 31, 2024, Allstate's debt was $8.1 billion, with a cash balance of $704 million, leading to increased interest expenses and financial pressure [14] - Recent wildfires in Los Angeles have resulted in estimated pre-tax losses of approximately $1.1 billion for Allstate, highlighting the impact of external events on its financial performance [18]

Regulatory Environment - The Allstate Corporation's insurance subsidiaries are subject to capital requirements that could impact future dividends, but no immediate effects on current dividend plans are expected [75]. - The company operates under various state insurance regulations, requiring prior approval for any acquisition of 10% or more of its common stock in multiple states [80]. - Rate regulation across 22 locations mandates prior approval for rate changes, affecting the company's ability to respond to market conditions [88]. - The Inflation Reduction Act of 2022 established a 15% corporate alternative minimum tax and a 1% excise tax on stock repurchases, impacting the company's financial strategies [94]. - The OECD's 15% Global Minimum Tax is expected to have a minimal impact on the company's operations, with compliance beginning on or after December 31, 2023 [96]. - The SEC's climate disclosure rule, if implemented, will require qualitative and quantitative disclosures related to climate risks and greenhouse gas emissions [97]. - California's Climate Corporate Data Accountability Act mandates phased reporting on greenhouse gas emissions, with regulations to be developed by July 1, 2025 [98]. - The company is involved in state-based indemnification programs, which may affect its financial obligations related to certain insurance coverages [88]. - The ability of subsidiaries to pay dividends is limited by state insurance regulatory authorities, which could adversely affect the holding company's liquidity and ability to meet obligations [175]. - Changes in regulatory and rating agency capital metrics could decrease deployable capital and potentially reduce future dividends paid by insurance companies [176]. - Regulatory environments may restrict necessary rate increases, impacting profitability and operational results [140]. - Legal and regulatory actions could materially affect the company's results of operations, cash flows, and financial condition, with ongoing litigation and inquiries posing significant risks [220]. - The company is subject to extensive regulations that may limit growth and profitability, with potential changes in the legal environment posing additional risks [213][219]. Financial Performance - Total revenues for 2024 increased to $64,106 million, up 12.3% from $57,094 million in 2023 [615]. - Net income attributable to Allstate for 2024 was $4,667 million, a significant recovery from a net loss of $188 million in 2023 [617]. - Earnings per common share for 2024 was $17.22, compared to a loss of $1.20 per share in 2023 [615]. - Property and casualty insurance premiums rose to $56,388 million in 2024, an increase of 11.9% from $50,670 million in 2023 [615]. - Total costs and expenses for 2024 were $58,345 million, slightly up from $57,442 million in 2023 [615]. - The company reported net investment income of $3,092 million in 2024, up from $2,478 million in 2023 [615]. - Comprehensive income attributable to Allstate for 2024 was $4,468 million, compared to $1,494 million in 2023 [617]. - Total assets increased to $111,617 million in 2024, up from $103,362 million in 2023 [622]. - Total liabilities rose to $90,250 million in 2024, compared to $85,732 million in 2023 [622]. - Total Allstate shareholders' equity increased to $21,442 million in 2024, up from $17,770 million in 2023 [622]. - Net income for 2024 was $4,599 million, a significant recovery from a net loss of $213 million in 2023 and $1,342 million in 2022 [627]. - Net cash provided by operating activities increased to $8,931 million in 2024, compared to $4,228 million in 2023 [627]. - The group health business generated $481 million in premiums and contract charges with an adjusted net income of $71 million for the year ended December 31, 2024 [640]. - Cash at the end of the period was $704 million, down from $722 million at the beginning of the period [627]. - Net cash used in investing activities was $(8,252) million in 2024, compared to $(2,999) million in 2023 [627]. - Proceeds from the issuance of debt amounted to $495 million in 2024, while redemption and repayment of debt totaled $(350) million [627]. - The company reported a decrease in dividends paid on common stock to $(962) million in 2024 from $(925) million in 2023 [627]. Employee Engagement and Culture - Allstate's organizational culture emphasizes employee development and aligns with its goal to become the lowest cost protection provider [108]. - As of December 31, 2024, Allstate had approximately 55,000 full-time employees and 400 part-time employees [109]. - In 2024, Allstate sustained a voluntary turnover rate of 13% and maintained employee engagement scores with 84% of employees expressing a favorable view [113]. - Allstate spent $58 million on employee engagement activities, including in-person and virtual events [114]. - Over 35% of open U.S. positions were filled with internal applicants in 2024 [113]. - Allstate's Employee Impact Groups (EIGs) showed a 28% lower turnover rate among members compared to non-members, with 14% of the U.S. workforce participating [115]. - The company provided financial assistance to over 2,000 U.S. employees for educational programs in 2024 [113]. - Allstate launched an early career enrichment experience to support the development of early career talent [113]. - The organization focuses on skills-based hiring by eliminating degree requirements for certain positions [117]. - Allstate's well-being strategy includes assessments to tailor support programs based on employee needs [114]. - The company emphasizes a culture of well-being, offering paid leave for family care from the day employees join [114]. Market and Competitive Landscape - The competitive landscape in the personal property-liability market is intense, with pricing pressures affecting growth and profitability [139]. - Changes in consumer preferences and technological advancements could disrupt demand for auto insurance, a significant portion of the company's business [165]. - The company must continually adapt to competitive pressures and changing consumer needs to maintain market position and customer retention [158]. - The deployment of new technologies, such as artificial intelligence, is critical for maintaining competitive advantage, but presents regulatory and ethical challenges [166]. - The Transformative Growth strategy aims to accelerate growth by enhancing customer value, expanding access, and investing in customer acquisition through a new technology ecosystem [171]. - The company is developing new insurance and non-insurance products to provide affordable and connected protection, with potential impacts on growth and profitability if not implemented effectively [172]. - Catastrophe risk management actions have led to a reduction in the homeowners business in certain states, which may negatively impact future premium growth rates [173]. - The company faces intense competition for qualified employees, particularly in specialized areas such as data and analytics, which could impact staffing levels and work culture [190]. - Global economic conditions, including low or negative growth and rising inflation, could adversely affect demand for products and overall results of operations [192]. Risk Management - The company faces significant risks from catastrophic events, which could lead to extraordinary losses and impact liquidity [135]. - Catastrophic losses are influenced by severe weather events, with potential increases in claims severity due to inflation and other external factors [136]. - Insufficient reinsurance capacity or high costs may limit the company's ability to profitably write business, impacting overall financial performance [179]. - Participation in indemnification programs poses risks related to reimbursement for claims, particularly with state-mandated mechanisms like the Michigan Catastrophic Claim Association [153]. - Cybersecurity risks, including data breaches and unauthorized access, pose significant threats to the company's operations and reputation, potentially leading to financial losses [200]. - The company faces risks from climate change, which may increase the frequency and severity of natural disasters, potentially impacting financial condition and profitability [205]. - The company is unable to predict the specific impact of climate change on its business due to significant variability in future conditions [207]. - The investment portfolio is subject to valuation risks due to economic shifts caused by climate change, impacting long-term investment returns [206]. - The company may face challenges in meeting evolving environmental, social, and governance (ESG) standards, which could affect stakeholder relationships and business practices [208][209]. - The company has implemented a robust Information Security Program aligned with industry best practices to manage cybersecurity risks [231]. - The company conducts regular risk assessments and control effectiveness tests to proactively identify and mitigate cybersecurity threats [234][235]. - The company has a cybersecurity resiliency strategy to enhance its ability to recover from attacks and maintain critical business operations [236].

we discuss ideas like this as they happen in more detail. All active investors are welcome to join on a free trial and ask any question in our chat room full of sophisticated traders and investors.With this article, we will look at The Allstate Corporation ( ALL ) and its exchange-traded debt issue - Allstate Corp., 5.10% Fixed-To-Floating Rate Sub Debentures due 1/15/2053, The Allstate Corporation SUB DEB 53 (Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the comp ...

Allstate (NYSE: ALL ) is a stock that I covered last year with skepticism. Titled A Non-Grower Priced for Growth, I rated it a Sell. There were many things I didn't like about the business, which IMy articles are written with a mind to owning a stock for years, not trying to predict price movements in a few months. I don't do target prices; I do valuations.I first entered investing in 2020 as an individual value investor, keen to understand the fundamentals of businesses and buy their shares at attractive p ...

Allstate said the wildfires that blazed through Southern California last month will bring the insurance company a sizable loss. CEO Tom Wilson said in a statement Wednesday that the wildfire-related losses are "expected to be about $1.1 billion, pre-tax, net of reinsurance, reflecting a decision to reduce market share beginning in 2007 and a comprehensive reinsurance program."Allstate’s expected loss from the Los Angeles-area wildfires was disclosed in the insurance company’s fourth-quarter earnings release ...

Shares of Allstate (NYSE: ALL ) have been a solid performer over the past year, adding 22%, as the company has been able to raise prices to recover lost underwriting margin. That said, shares have pulled back aboutOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure: I ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $16.5 billion, an increase of 11.3% compared to the prior year quarter [9] - Net income for Q4 2024 was $1.9 billion, with a full-year net income of $4.6 billion [9] - Adjusted net income return on equity was 26.8% for the last twelve months [10][12] - Revenues for the full year 2024 reached $64.1 billion, with property liability earned premiums up 10.6% in Q4 and 11.2% for the full year [11] Business Line Data and Key Metrics Changes - Property liability underwriting income for Q4 was $1.8 billion, an improvement of $507 million compared to the prior year [22] - Auto insurance generated $603 million of underwriting income, reflecting a $510 million improvement year-over-year [22] - Homeowners insurance underwriting income was $1.1 billion, down $99 million from the prior year due to increased catastrophe losses [22] - The combined ratio for property liability was 86.9%, a 2.6 percentage point improvement from the prior year [24] Market Data and Key Metrics Changes - Policies in force increased from 237.3 million to 240 million, despite pandemic-related price increases [20] - Homeowners insurance policies in force grew by 2.4%, driven by strong retention and a 20.5% increase in new business [37] - Auto insurance policies in force declined by 1.4%, primarily due to decreased customer retention in states with significant rate increases [36] Company Strategy and Development Direction - The company aims to increase personal property liability market share and expand customer protection [8] - New products, including affordable connected auto insurance, have been launched in 31 states [16] - The company is focusing on improving customer access through enhanced agent productivity and expanded direct sales [17] - The sale of group health and employee voluntary benefits is expected to generate $3.25 billion in proceeds, which will be used to strengthen the company's competitive position [10][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial performance and strategic growth initiatives [12] - The company is proactively addressing retention issues and improving customer satisfaction through targeted outreach [68] - Management acknowledged challenges in California but emphasized a strong business model and profitability in other markets [100] Other Important Information - The company plans to provide monthly disclosures of policies in force to enhance transparency for investors [39] - The financial impact of California wildfires is estimated at $2 billion, with reinsurance recoveries expected to mitigate losses [33][34] Q&A Session Summary Question: Advertising Spend Increase - Management explained that advertising spend is adjusted quarterly based on market conditions and analytics, ensuring efficiency in ad spend [56][57] Question: Growth in Property Liability - Management clarified that while they do not provide forward-looking projections, they are currently growing in homeowners and are optimistic about future growth in auto insurance [59][60] Question: Competitive Pricing and Retention - Management discussed the competitive positioning of pricing and emphasized the importance of retention strategies to improve customer satisfaction [72][79] Question: Return on Equity Outlook - Management indicated that while the current ROE is strong, the focus will be on growth to drive shareholder value rather than solely on increasing returns [81][88] Question: Expense Ratio Improvements - Management confirmed ongoing efforts to reduce expenses further, focusing on digitization and marketing effectiveness [92][95] Question: California Wildfire Impact - Management stated that they do not have growth aspirations in California and have been cautious in their approach to new customers in the state [98][100] Question: Retention Metrics - Management highlighted the importance of retention and indicated that they will provide more transparent monthly updates on retention trends [105][112]

The Allstate Corporation (ALL) reported a fourth-quarter 2024 adjusted net income of $7.67 per share, which outpaced the Zacks Consensus Estimate by 17.8%. The bottom line increased nearly 32% year over year.Operating revenues advanced 12.1% year over year to $16.71 billion but missed the consensus mark by a whisker.See the Zacks Earnings Calendar to stay ahead of market-making news.The strong fourth-quarter earnings benefited from growth in premiums and improved underwriting income and investment income. H ...

Financial Performance - Allstate's total revenue reached $16.5 billion in the fourth quarter and $64.1 billion for the full year, representing increases of 11.3% and 12.3% respectively, compared to the prior year[6] - Net income applicable to common shareholders was $1.9 billion in the fourth quarter and $4.6 billion for the full year[6,8] - The adjusted net income return on equity was 26.8% over the last twelve months[6,8] Underwriting Results - Property-Liability insurance premiums reached $13.933 billion in the fourth quarter, up 10.6%, and $53.866 billion for the full year, up 11.2%[8] - The Property-Liability combined ratio was 86.9 in Q4, a decrease of 2.6 percentage points[10] - Auto Insurance underwriting income was $603 million in Q4, with a combined ratio of 93.5, improved by 5.4 percentage points[10] - Homeowners Insurance underwriting income was $1.070 billion in Q4, but the combined ratio increased to 69.8, up 7.8 percentage points[10] Strategic Initiatives - The sale of Group Health, combined with the previously announced Employer Voluntary Benefits sale, will generate $3.25 billion of total expected proceeds[6,7,33] - The adjusted expense ratio decreased from 27.9 in 2019 to 23.1 in 2024 due to Transformative Growth initiatives[9] Business Segment Performance - Protection Plans revenues increased 20.3% to $528 million in the fourth quarter and 21.2% to $1.987 billion for the full year[29,30] - Protection Plans adjusted net income was $37 million for the quarter and $157 million for the year[30] Investment Portfolio - Net investment income was $833 million in the fourth quarter, a 37.9% increase, and $3.092 billion for the full year, a 24.8% increase[8] - Market-based equity investments increased to $3.3 billion, representing 5% of the portfolio at year-end 2024[26] Policies in Force - Total policies in force reached 37.5 million[23] - Auto policies in force decreased by 347,000, a 1.4% decrease[23] - Homeowners policies in force increased by 173,000, a 2.4% increase[23] California Wildfire Impact - Gross losses from California wildfires are estimated at $2.0 billion, with reinsurance recoveries of $0.9 billion, resulting in net losses of $1.1 billion before tax[21]

Financial Performance - Consolidated revenues for Q4 2024 reached $16.5 billion, an increase of 11.3% compared to Q4 2023[9] - Net income applicable to common shareholders was $1.9 billion in Q4 2024, up 30.1% from $1.5 billion in the prior year quarter[9] - Adjusted net income for the full year 2024 was $4.9 billion, with an adjusted net income return on equity of 26.8%[9] - Total revenues for the twelve months ended December 31, 2024, reached $64,106 million, up from $57,094 million in 2023, marking an increase of 12.0%[33] - Net income attributable to Allstate for the twelve months ended December 31, 2024, was $4,667 million, a significant recovery from a net loss of $188 million in 2023[33] - Earnings per common share increased to $17.22 in 2024 from a loss of $1.20 in 2023, indicating a substantial turnaround[33] - Adjusted net income for the twelve months ended December 31, 2024, reached $4,906 million, significantly higher than $251 million in 2023, resulting in adjusted diluted earnings per share of $18.32 compared to $0.95[42] - The return on Allstate common shareholders' equity for 2024 was 25.8%, a substantial improvement from a negative 2.0% in 2023[42] Premiums and Policies - Property-Liability earned premiums increased by 10.6% to $13.9 billion in Q4 2024, driven by higher average premiums[10] - Total policies in force grew to 208,345 thousand, a 7.2% increase from the previous year[4] - Protection Plans revenues reached nearly $2.0 billion for the year, with policies in force increasing by 60% since 2019 to 160 million[8] - Earned premiums increased by 15.3% year-over-year, driven by a 2.4% growth in policies in force and higher average premiums[19] - Property and casualty insurance premiums rose to $56,388 million in 2024, compared to $50,670 million in 2023, reflecting an increase of 11.0%[33] Losses and Ratios - Catastrophe losses for the year were $4.964 billion, a decrease of 11.9% compared to the previous year[4] - Catastrophe losses in the fourth quarter amounted to $315 million, an increase of $294 million compared to the prior year quarter, primarily due to Hurricane Milton[19] - The recorded Property-Liability combined ratio improved to 86.9 in Q4 2024, a 2.6-point decrease from the prior year[10] - The recorded homeowners insurance combined ratio was 69.8, reflecting a 7.8-point increase from the previous year, while the underlying combined ratio improved by 1.8 points to 59.5[19] - The underlying combined ratio for the Property-Liability segment improved to 83.0% in Q4 2024 from 86.9% in Q4 2023, indicating better underwriting performance[45] - The combined ratio for Allstate Protection - Auto Insurance decreased to 93.5% in Q4 2024 from 98.9% in Q4 2023, reflecting enhanced operational efficiency[45] - The effect of catastrophe losses on the combined ratio for the twelve months ended December 31, 2024, was a reduction of 27.8%, down from 38.6% in 2023, showcasing improved risk management[45] Investments - Investment income increased to $3.1 billion in 2024, a 24.8% increase year-over-year due to repositioning into higher yielding fixed income securities[8] - Net investment income for the fourth quarter was $833 million, an increase of $229 million from the prior year quarter, attributed to repositioning into higher yielding fixed income securities[24] - The total return on the investment portfolio was (1.1)% for the fourth quarter and 3.8% for the full year 2024[27] - The company reported net investment income of $3,092 million for the twelve months ended December 31, 2024, compared to $2,478 million in 2023, an increase of 24.7%[33] - Net gains on investments and derivatives for the twelve months ended December 31, 2024, were $225 million, compared to $300 million in 2023, indicating a slight decline in investment performance[42] Assets and Liabilities - Total assets increased to $111,617 million in 2024 from $103,362 million in 2023, representing a growth of 8.1%[31] - Total liabilities grew to $90,250 million in 2024, up from $85,732 million in 2023, an increase of 5.9%[31] - The reserve for property and casualty insurance claims increased to $41,917 million in 2024 from $39,858 million in 2023, a rise of 5.2%[31] - The total equity attributable to Allstate shareholders increased to $21,442 million in 2024 from $17,770 million in 2023, a growth of 20.0%[31] Strategic Initiatives - The Health and Benefits businesses are being sold for $3.25 billion, with two of the three businesses now under contract[8] - The strategy to divest the Employer Voluntary Benefits and Group Health businesses is expected to yield combined proceeds of $3.25 billion, generating a financial book gain of approximately $1.0 billion in 2025[23] Non-Recurring Items - The company reported non-recurring costs of $90 million in 2023, which were excluded from the adjusted net income calculation for that year[42] - The pension and other postretirement remeasurement losses for the twelve months ended December 31, 2024, were $(37) million, a significant improvement from $9 million in 2023, reflecting better management of retirement obligations[42]