Why Is Allstate (ALL) Up 2.9% Since Last Earnings Report?

Core Viewpoint - Allstate's recent earnings report indicates strong performance driven by premium growth and investment income, despite facing challenges from elevated catastrophe losses and rising costs [2][3][4]. Financial Performance - Allstate reported Q4 2024 adjusted net income of $7.67 per share, exceeding the Zacks Consensus Estimate by 17.8% and showing a nearly 32% year-over-year increase [2]. - Operating revenues for Q4 2024 reached $16.71 billion, a 12.1% increase year-over-year, although it slightly missed consensus estimates [2][4]. - For the full year 2024, operating revenues totaled $64.33 billion, up from $57.39 billion in 2023, and adjusted net income surged to $18.32 per share from $0.95 a year ago [4]. Premiums and Investment Income - Consolidated premiums written in Q4 2024 were $15.06 billion, reflecting an 8.8% year-over-year improvement [5]. - Net investment income rose to $833 million, a 46.2% increase year-over-year, driven by repositioning into higher-yielding fixed-income securities [5]. Costs and Expenses - Total costs and expenses increased by 8.1% year-over-year to $14 billion, primarily due to higher property and casualty insurance claims [6]. - Catastrophe losses rose significantly to $410 million from $68 million a year ago [6]. Segment Performance - The Property-Liability segment's premiums earned increased by 10.6% year-over-year to $13.9 billion, although it fell short of estimates by 0.5% [8]. - The Protection Services segment saw revenues of $889 million, a 23.6% year-over-year increase, with adjusted net income rising to $50 million from $4 million [9]. - The Allstate Health and Benefits segment's premium and contract charges improved by 3.2% year-over-year to $482 million, but adjusted net income dropped by 41.7% [10][11]. Financial Position - As of December 31, 2024, Allstate had a cash balance of $704 million and total assets of $111.6 billion, up from $103.4 billion a year earlier [12]. - Total equity increased to $21.4 billion from $17.6 billion at the end of 2024 [12]. - Book value per common share was $72.35, reflecting a 21.8% year-over-year increase [13]. Future Outlook - Allstate anticipates an increase in total Property-Liability policies in 2025 as auto insurance policy renewal rates improve [14]. - However, recent estimates have shown a downward trend, with a consensus estimate shift of -27.35% [15][17].