Aallstate(ALL) - 2024 Q4 - Annual Results

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]