Aallstate(US:ALL)2025-04-30 20:23Financial Performance - Consolidated net income applicable to common shareholders decreased 52.4% to $566 million in Q1 2025 compared to Q1 2024, primarily due to higher catastrophe and realized capital losses [230]. - Total revenues increased 7.8% to $16.45 billion in Q1 2025 compared to Q1 2024, driven by premium rate increases and higher homeowners insurance policies in force [230]. - Allstate Protection underwriting income was $364 million in Q1 2025, down from $903 million in Q1 2024, due to higher catastrophe losses of $2.20 billion compared to $731 million in the prior year [236]. - Protection Services adjusted net income was $55 million in Q1 2025, slightly up from $54 million in Q1 2024, primarily due to premium growth at Allstate Protection Plans [238]. - Allstate Health and Benefits adjusted net income decreased to $30 million in Q1 2025 from $56 million in Q1 2024, mainly due to increased benefit utilization [240]. Premiums and Underwriting - Premiums written increased 8.5% to $14.30 billion in Q1 2025, reflecting higher premiums in auto and homeowners insurance [237]. - Premiums written increased by 8.4% or $1,114 million to $14,297 million in Q1 2025 compared to Q1 2024 [247]. - Underwriting income decreased by 59.7% or $539 million to $364 million in Q1 2025 due to higher catastrophe losses [247]. - Catastrophe losses increased significantly to $2,202 million in Q1 2025 from $731 million in Q1 2024 [247]. - The loss ratio rose to 76.0% in Q1 2025 from 72.4% in Q1 2024, while the combined ratio increased to 97.4% from 93.0% [260]. Segment Performance - Auto premiums written increased by 5.2% or $491 million to $9,848 million in Q1 2025 compared to Q1 2024 [251]. - Homeowners premiums written increased by 20.1% or $579 million to $3,453 million in Q1 2025 compared to Q1 2024 [252]. - Other personal lines premiums written increased by 10.5% or $69 million to $729 million in Q1 2025 compared to Q1 2024 [257]. - Commercial lines premiums written decreased by 40.1% or $63 million to $94 million in Q1 2025 compared to Q1 2024 due to strategic decisions [257]. - Premiums written in the Protection Services Segment increased by 4.8% or $30 million to $657 million in Q1 2025 compared to Q1 2024 [289]. Investment and Capital - Investments totaled $74.05 billion as of March 31, 2025, up from $72.61 billion as of December 31, 2024 [231]. - Book value per diluted common share increased 19.8% to $74.61 as of March 31, 2025, compared to $62.27 as of March 31, 2024 [232]. - Total capital resources increased to $30.14 billion as of March 31, 2025, up from $29.53 billion at the end of 2024 [333]. - The ratio of debt to Allstate shareholders' equity improved to 36.7% as of March 31, 2025, compared to 37.7% at the end of 2024 [333]. - The company has commitments to invest an additional $3.25 billion in limited partnership interests as of March 31, 2025 [320]. Claims and Loss Ratios - The auto loss ratio decreased by 6.1 points to 69.3% in Q1 2025 compared to Q1 2024, driven by increased earned premiums and lower non-catastrophe losses [261]. - The homeowners loss ratio increased by 31.5 points to 91.8% in Q1 2025 compared to Q1 2024, primarily due to higher catastrophe losses [262]. - Catastrophe losses rose to $2.20 billion in Q1 2025, an increase of $1.47 billion from Q1 2024, with $1.06 billion attributed to California wildfires [266]. - The commercial lines loss ratio decreased by 57.0 points to 58.4% in Q1 2025 compared to Q1 2024, primarily due to lower losses despite a decrease in earned premiums [264]. Future Expectations and Risks - The company expects to record a gain of approximately $625 million from the sale of its employer voluntary benefits business, which closed on April 1, 2025 [225]. - The company anticipates a gain of approximately $450 million from the sale of its group health business, expected to close in 2025 [295]. - Forward-looking statements indicate potential risks related to market conditions, regulatory changes, and operational challenges that could impact future performance [350].