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Aallstate(ALL) - 2025 Q1 - Quarterly Results
ALLAallstate(ALL)2025-04-30 20:16

Financial Performance - Total revenues for Q1 2025 were 16.5billion,a7.816.5 billion, a 7.8% increase from the prior year[6] - Net income applicable to common shareholders was 566 million, down 52.4% from 1.2billioninQ12024,primarilyduetoelevatedcatastrophelosses[6]−Adjustednetincomewas1.2 billion in Q1 2024, primarily due to elevated catastrophe losses[6] - Adjusted net income was 949 million, or 3.53perdilutedshare,comparedto3.53 per diluted share, compared to 1.4 billion in the prior year quarter[6] - Adjusted net income for the first quarter was 949million,downfrom949 million, down from 1,367 million in the prior year quarter, reflecting a decrease in net income applicable to common shareholders from 1,189millionto1,189 million to 566 million[32] - Adjusted net income for the twelve months ended March 2025 was 4,488million,comparedto4,488 million, compared to 1,960 million for the same period in 2024, reflecting a significant increase[36] Insurance Premiums and Policies - Property-Liability earned premiums increased by 8.7% to 14.0billion,drivenbyhigheraveragepremiums[8]−Totalpoliciesinforcegrewby6.714.0 billion, driven by higher average premiums[8] - Total policies in force grew by 6.7% to 210.6 million, reflecting strong demand for insurance products[7] - Premiums and contract charges for health and benefits increased by 1.9%, or 9 million, compared to the prior year quarter, primarily due to growth in Individual Health and Group Health[23] - Total revenues for the first quarter increased to 16,452million,upfrom16,452 million, up from 15,259 million in the prior year quarter, with property and casualty insurance premiums rising to 14,698million[28]CatastropheLosses−Catastrophelossesforthequarterwere14,698 million[28] Catastrophe Losses - Catastrophe losses for the quarter were 2.2 billion, significantly higher than 731millionintheprioryear[7]−Therecordedhomeownersinsurancecombinedratiowas112.3,30.2pointshigherthantheprioryear,reflectingincreasedcatastrophelosses[16]−TheeffectofcatastrophelossesonthecombinedratiofortheProperty−Liabilitysegmentwas(15.7)forthethreemonthsendedMarch2025,comparedto(5.7)in2024[39]InvestmentIncome−NetinvestmentincomeforQ12025was731 million in the prior year[7] - The recorded homeowners insurance combined ratio was 112.3, 30.2 points higher than the prior year, reflecting increased catastrophe losses[16] - The effect of catastrophe losses on the combined ratio for the Property-Liability segment was (15.7) for the three months ended March 2025, compared to (5.7) in 2024[39] Investment Income - Net investment income for Q1 2025 was 854 million, up 90millionfromtheprioryearduetoportfoliogrowth[22]−Market−basedinvestmentincomeroseto90 million from the prior year due to portfolio growth[22] - Market-based investment income rose to 719 million, an increase of 93million,or14.993 million, or 14.9%, compared to the prior year quarter, driven by higher yields in the 63.5 billion market-based portfolio[24] - Net losses on investments and derivatives were 349millioninthefirstquarter,comparedtolossesof349 million in the first quarter, compared to losses of 164 million in the prior year quarter, primarily due to losses on fixed income securities and equity investments[24] - The total return on the investment portfolio was 1.4% for the first quarter of 2025 and 4.7% for the latest twelve months[24] Business Transactions - The sale of the Employer Voluntary Benefits business closed on April 1, 2025, generating a financial book gain of approximately 625million[20]−ThecompletionoftheEmployerVoluntaryBenefitsbusinesssaleandtheagreementtoselltheGroupHealthbusinessareexpectedtoenhancegrowthopportunitiesandcreatevalueforshareholders[25]ShareholderReturns−Thecompanyannounceda625 million[20] - The completion of the Employer Voluntary Benefits business sale and the agreement to sell the Group Health business are expected to enhance growth opportunities and create value for shareholders[25] Shareholder Returns - The company announced a 1.5 billion share repurchase program and a quarterly dividend increase to 1.00percommonshare[25]−ReturnonAllstatecommonshareholders′equityforthetwelvemonthsendedMarch2025was21.41.00 per common share[25] - Return on Allstate common shareholders' equity for the twelve months ended March 2025 was 21.4%, up from 7.6% in 2024[36] - The adjusted net income return on Allstate common shareholders' equity for the twelve months ended March 2025 was 23.7%, up from 11.3% in 2024[36] Assets and Reserves - Total assets increased to 115,161 million as of March 31, 2025, compared to 111,617millionattheendoftheprioryear[27]−Thereserveforpropertyandcasualtyinsuranceclaimsandclaimsexpenseroseto111,617 million at the end of the prior year[27] - The reserve for property and casualty insurance claims and claims expense rose to 43,835 million, up from $41,917 million in the prior year[27] Combined Ratios - The underlying combined ratio for the Property-Liability segment for the three months ended March 2025 was 83.1%, an improvement from 86.9% in 2024[39] - The combined ratio for Allstate Protection - Auto Insurance for the three months ended March 2025 was 91.3%, down from 96.0% in 2024[40] - The combined ratio for Allstate Protection - Homeowners Insurance for the three months ended March 2025 was 112.3%, compared to 82.1% in 2024, indicating a significant increase[41] - The effect of prior year non-catastrophe reserve reestimates on the combined ratio for the Property-Liability segment was 1.7 for the three months ended March 2025, compared to (0.1) in 2024[39]