Aallstate(US:ALL)2025-04-30 20:16Financial Performance - Total revenues for Q1 2025 were $16.5 billion, a 7.8% increase from the prior year[6] - Net income applicable to common shareholders was $566 million, down 52.4% from $1.2 billion in Q1 2024, primarily due to elevated catastrophe losses[6] - Adjusted net income was $949 million, or $3.53 per diluted share, compared to $1.4 billion in the prior year quarter[6] - Adjusted net income for the first quarter was $949 million, down from $1,367 million in the prior year quarter, reflecting a decrease in net income applicable to common shareholders from $1,189 million to $566 million[32] - Adjusted net income for the twelve months ended March 2025 was $4,488 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 $14.0 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 $16,452 million, up from $15,259 million in the prior year quarter, with property and casualty insurance premiums rising to $14,698 million[28] Catastrophe Losses - Catastrophe losses for the quarter were $2.2 billion, significantly higher than $731 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 $90 million from the prior year due to portfolio growth[22] - Market-based investment income rose to $719 million, an increase of $93 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 $349 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 $625 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 $1.00 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 $111,617 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]