Aallstate(ALL)2024-10-30 20:16Financial Performance - Total revenues for Q3 2024 were $16.627 billion, compared to $14.497 billion in Q3 2023, representing a 14.7% increase[9] - Net income attributable to Allstate for Q3 2024 was $1.190 billion, a significant improvement from a net loss of $5 million in Q3 2023[9] - Earnings per common share (diluted) for Q3 2024 were $4.33, compared to a loss of $0.16 per share in Q3 2023[9] - Comprehensive income attributable to Allstate for Q3 2024 was $2.460 billion, a significant turnaround from a loss of $659 million in Q3 2023[10] - Net income for the nine months ended September 30, 2024, was $2,709 million, a significant improvement from a net loss of $1,700 million in the same period of 2023[16] - Net income for Q3 2024 was $1.164 billion, compared to a net loss of $4 million in Q3 2023[21] - Net income for the nine months ended September 30, 2024, was $2.709 billion, compared to a net loss of $1.7 billion for the same period in 2023[21] - Basic earnings per share for Q3 2024 were $4.39, compared to a loss of $0.16 per share in Q3 2023[21] - Diluted earnings per share for Q3 2024 were $4.33, compared to a loss of $0.16 per share in Q3 2023[21] - Consolidated net income applicable to common shareholders was $1.16 billion in Q3 2024, compared to a loss of $41 million in Q3 2023, primarily due to improved underwriting results[141] - Total revenues increased 14.7% to $16.63 billion in Q3 2024 compared to the same period in 2023, driven by premium rate increases and higher realized capital gains[142] - Net investment income increased $94 million to $783 million in Q3 2024, primarily due to higher market-based investment results[143] - Allstate shareholders' equity increased to $20.88 billion as of September 30, 2024, from $17.77 billion as of December 31, 2023, driven by net income and unrealized net capital gains[144] - Book value per diluted common share increased 47.2% to $70.35 as of September 30, 2024, compared to $47.79 as of September 30, 2023[145] - Return on average Allstate common shareholders' equity for the twelve months ended September 30, 2024 was 26.1%, up from (14.7)% for the same period in 2023[145] Insurance Premiums and Claims - Property and casualty insurance premiums increased to $14.333 billion in Q3 2024, up 11.6% from $12.839 billion in Q3 2023[9] - Property and casualty insurance claims and claims expense increased slightly to $10.409 billion in Q3 2024, up 1.7% from $10.237 billion in Q3 2023[9] - Total Property-Liability insurance premiums increased to $13.694 billion in Q3 2024, up from $12.270 billion in Q3 2023[29] - Auto insurance premiums grew to $9.270 billion in Q3 2024, a 11.1% increase from $8.345 billion in Q3 2023[29] - Homeowners insurance premiums rose to $3.403 billion in Q3 2024, up 14.6% from $2.969 billion in Q3 2023[29] - Property and casualty insurance premiums increased to $14.33 billion in Q3 2024, up from $12.84 billion in Q3 2023, reflecting a growth of 11.6%[146] - Premiums written in Q3 2024 increased by 10.5% to $14.71 billion compared to $13.30 billion in Q3 2023[147] - Total premiums written for Q3 2024 were $14.707 billion, up from $13.304 billion in Q3 2023, while total premiums earned were $13.694 billion, up from $12.270 billion in Q3 2023[153] - Auto insurance premiums written increased by 8.8% or $769 million in Q3 2024 compared to Q3 2023, and by 11.0% or $2.79 billion in the first nine months of 2024 compared to the same period in 2023[159] - Homeowners insurance premiums written increased by 15.5% or $548 million in Q3 2024 compared to Q3 2023, driven by higher average premiums and policy growth[160] - Other personal lines premiums written increased by 20.9% or $141 million in Q3 2024 compared to Q3 2023, primarily due to increases in involuntary auto policies and landlords policies[161] - Commercial lines premiums written decreased by 25.7% or $36 million in Q3 2024 compared to Q3 2023, due to strategic decisions to stop writing new business and non-renew certain policies[161] - Premiums earned rose by $1,424 million (11.6%) to $13,694 million for the three months ended September 30, 2024, compared to $12,270 million in 2023[172] - Premiums written increased 3.0% or $20 million in Q3 2024 compared to Q3 2023, driven by growth at Allstate Protection Plans[179] - Premiums and contract charges increased 5.2% or $24 million in Q3 2024 and 4.4% or $60 million in the first nine months of 2024 compared to the same periods in 2023, primarily due to growth in individual health and group health[183] Investment Performance - Net investment income rose to $783 million in Q3 2024, a 13.6% increase from $689 million in Q3 2023[9] - Unrealized net capital gains and losses improved to $1.299 billion in Q3 2024, compared to a loss of $667 million in Q3 2023[10] - Total investments grew to $73,602 million in Q3 2024, up from $66,677 million at the end of 2023[12] - Fixed income securities at fair value increased to $53,961 million in Q3 2024, up from $48,865 million at the end of 2023[12] - Net investment income for Property-Liability increased to $708 million in Q3 2024, compared to $627 million in Q3 2023[29] - Total fixed income securities portfolio grew to $53.961 billion as of September 30, 2024, up from $48.865 billion at December 31, 2023[30] - Net investment income for the three months ended September 30, 2024, was $783 million, compared to $689 million in the same period in 2023, representing a 13.6% increase[31] - Fixed income securities generated $587 million in investment income for the three months ended September 30, 2024, up from $457 million in the same period in 2023, a 28.4% increase[31] - Equity securities investment income for the three months ended September 30, 2024, was $17 million, compared to $15 million in the same period in 2023, a 13.3% increase[31] - Net gains on investments and derivatives for the three months ended September 30, 2024, were $243 million, compared to a net loss of $86 million in the same period in 2023[33] - Gross realized gains for the three months ended September 30, 2024, were $201 million, compared to $11 million in the same period in 2023, a significant increase[35] - Credit losses recognized in net income for the three months ended September 30, 2024, were $12 million, compared to $19 million in the same period in 2023, a 36.8% decrease[36] - Unrealized net capital gains and losses included in accumulated other comprehensive income as of September 30, 2024, were $361 million after-tax, compared to a loss of $604 million as of December 31, 2023[37] - The fair value of short-term investments as of September 30, 2024, was $6.99 billion, compared to $5.14 billion as of December 31, 2023, a 36.0% increase[41] - The carrying value of limited partnership interests as of September 30, 2024, was $8.925 billion, compared to $8.380 billion as of December 31, 2023, a 6.5% increase[40] - Other investments as of September 30, 2024, totaled $866 million, compared to $1.055 billion as of December 31, 2023, a 17.9% decrease[43] - The company's credit loss allowance for fixed income securities as of September 30, 2024, was $22 million, compared to $37 million as of December 31, 2023[47] - Corporate bonds accounted for the largest portion of the credit loss allowance at $18 million as of September 30, 2024, down from $34 million as of December 31, 2023[47] - Total unrealized losses on fixed income securities as of September 30, 2024, were $629 million, with $558 million attributed to investment grade securities and $71 million to below investment grade securities[50] - U.S. government and agency securities had unrealized losses of $41 million as of September 30, 2024, a decrease from $119 million as of December 31, 2023[48] - Municipal bonds had unrealized losses of $96 million as of September 30, 2024, down from $152 million as of December 31, 2023[48] - The company's accrued interest excluded from the amortized cost of fixed income securities totaled $560 million as of September 30, 2024, up from $495 million as of December 31, 2023[45] - The company recorded $10 million in credit losses on securities for which credit losses were not previously reported during the nine months ended September 30, 2024[47] - Write-offs of fixed income securities totaled $18 million during the nine months ended September 30, 2024[47] - The company's portfolio monitoring process includes a quarterly review of all securities to identify potential credit losses using all reasonably available information[46] - The company's evaluation of credit losses for fixed income securities considers factors such as the financial condition and future earnings potential of the issue or issuer[46] - Mortgage loans with a debt service coverage ratio below 1.0 totaled $13 million as of September 30, 2024, primarily due to temporary cash flow decreases or risk-mitigating circumstances[53] - The amortized cost of mortgage loans before allowance was $776 million as of September 30, 2024, with an allowance of $(11) million, resulting in a net amortized cost of $765 million[52] - Bank loans with a credit rating of NAIC 4 / B had the highest amortized cost before allowance at $119 million as of September 30, 2024[56] - The credit loss allowance for bank loans decreased by $5 million during the nine months ended September 30, 2024, primarily due to reductions related to sales[56] - The ending balance of the credit loss allowance for mortgage loans remained unchanged at $(11) million for both the three and nine months ended September 30, 2024[54] - The amortized cost of bank loans before allowance was $198 million as of September 30, 2024, with an allowance of $(11) million, resulting in a net amortized cost of $187 million[56] - The company uses a probability of default and loss given default model to estimate credit losses for mortgage and bank loans, considering historical losses, prepayments, and economic factors[51] - The debt service coverage ratio is a key credit quality indicator for mortgage loans, updated annually or more frequently based on the company's credit monitoring process[51] - Bank loans are evaluated individually using methods such as the present value of expected future repayment cash flows discounted at the loan's current effective interest rate[54] - The company categorizes assets and liabilities recorded at fair value into three levels based on the observability of inputs used in valuation techniques[57] - Fixed income securities total $53.961 billion, with U.S. government and agencies at $9.246 billion, municipal at $8.258 billion, corporate - public at $24.320 billion, corporate - privately placed at $9.476 billion, foreign government at $1.477 billion, and ABS at $1.184 billion[65] - Equity securities total $1.941 billion, with Level 1 at $1.295 billion, Level 2 at $238 million, and Level 3 at $408 million[65] - Short-term investments total $6.994 billion, with Level 1 at $2.771 billion, Level 2 at $4.221 billion, and Level 3 at $2 million[65] - Other investments total $2 million, with Level 2 at $1 million and Level 3 at $2 million[65] - Assets held for sale total $1.718 billion, with Level 1 at $177 million, Level 2 at $1.534 billion, and Level 3 at $7 million[65] - Total recurring basis assets amount to $64.741 billion, with Level 1 at $13.484 billion, Level 2 at $50.535 billion, and Level 3 at $723 million[65] - Non-recurring basis assets total $1 million, all classified as Level 3[65] - Investments reported at NAV total $1.124 billion, excluded from the fair value hierarchy[65] - The company has commitments to invest $161 million in limited partnership interests as of September 30, 2024[64] - Total liabilities at fair value amount to $9 million, with Level 1 at $9 million and Level 2 at $16 million, offset by counterparty and cash collateral netting of $16 million[65] - Total fixed income securities at fair value as of December 31, 2023, amounted to $48.865 billion, with Level 1 assets at $8.606 billion (21.2%), Level 2 assets at $40.106 billion (77.6%), and Level 3 assets at $153 million (1.2%)[66] - Level 3 fixed income securities increased from $153 million as of December 31, 2023, to $181 million as of September 30, 2024, driven by purchases and transfers[67][68] - Equity securities at fair value as of December 31, 2023, totaled $2.261 billion, with Level 1 assets at $1.656 billion, Level 2 assets at $203 million, and Level 3 assets at $402 million[66] - Total recurring Level 3 assets increased from $676 million as of December 31, 2023, to $723 million as of September 30, 2024, primarily due to gains in equity securities and other assets[67][68] - Short-term investments at fair value as of December 31, 2023, were $5.144 billion, with Level 1 assets at $1.676 billion, Level 2 assets at $3.467 billion, and Level 3 assets at $1 million[66] - Municipal fixed income securities at fair value as of December 31, 2023, were $6.006 billion, with Level 2 assets at $5.995 billion and Level 3 assets at $11 million[66] - Corporate - public fixed income securities at fair value as of December 31, 2023, were $23.298 billion, with Level 2 assets at $23.272 billion and Level 3 assets at $26 million[66] - ABS (Asset-Backed Securities) at fair value as of December 31, 2023, were $1.745 billion, with Level 2 assets at $1.687 billion and Level 3 assets at $58 million[66] - Total assets at fair value as of December 31, 2023, were $56.409 billion, with Level 1 assets at $11.941 billion (21.2%), Level 2 assets at $43.779 billion (77.6%), and Level 3 assets at $691 million (1.2%)[66] - Investments reported at NAV (Net Asset Value) as of December 31, 2023, totaled $1.165 billion, contributing to the total assets of $57.574 billion[66] - Total recurring Level 3 assets increased from $625 million to $647 million during the nine-month period ended September 30, 2023, driven by purchases and net gains[69] - Equity securities under Level 3 assets grew from $333 million to $383 million, with net gains of $22 million included in net income over the nine-month period[70] - Fixed income securities under Level 3 assets decreased from $173 million to $133 million, primarily due to sales and losses, including a $9 million net loss in net income[70] - Net gains (losses) on investments and derivatives for Level 3 assets totaled $16 million for the three months ended September 30, 2023, and $15 million for the nine-month period[70] - Total Level 3 gains included in net income for the nine months ended September 30, 2023, were $19 million, with equity securities contributing $21 million[71] - Mortgage loans classified as Level 3 financial assets had a fair value of $736 million as of September 30, 2024, compared to $769 million as of December 31, 2023[72] - Bank loans under Level 3 financial assets increased in fair value from $238 million to $197 million as of September 30, 2024[72] - Contractholder funds on investment contracts classified as Level 3 liabilities decreased to $0 as of September 30, 2024, from $46 million as of December 31, 2023[72] - Debt classified as Level 2 liabilities had a fair value of $8,027 million as of September 30, 2024, compared to $7,655 million as of December 31, 2023[72] -