Financial Data and Key Metrics Changes - Revenues for the first quarter were $16.5 billion, an increase of 7.8% compared to the first quarter of 2024 [7] - Net income was $566 million, with adjusted net income at $949 million, translating to $3.53 per diluted share [7] - Adjusted net income return on equity was 23.7% over the last twelve months [7] Business Line Data and Key Metrics Changes - The property liability business generated $360 million of underwriting income, with a combined ratio of 97.4%, which was 4.4 points higher than the prior year due to $3.3 billion in gross catastrophe losses [14] - The auto combined ratio was 91.3%, with average earned premium increases outpacing losses [15] - Homeowners policies grew by 2.5% year-over-year, while total property liability policies increased by 0.1% in the quarter [19] Market Data and Key Metrics Changes - New business applications for auto insurance were 31.2% above the prior year, with strong growth across all distribution channels [20] - The company reported a 27% increase in personalized new business items compared to the previous year [12] - The homeowners business is experiencing mid-teens revenue growth, indicating a strong market position [72] Company Strategy and Development Direction - The company aims to increase personal property liability market share and expand customer protection [7] - A transformative growth strategy is being executed to improve customer value and lower costs, which has led to improved expense ratios [10] - The company is focused on expanding distribution channels, enhancing agent productivity, and increasing direct sales [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the rationality of the competitive market, with no aggressive rate reductions expected [34] - The company is optimistic about sustaining new business levels and improving retention through initiatives like the SAVE program [39] - Management highlighted the importance of maintaining profitability while managing potential impacts from tariffs and inflation [93] Other Important Information - The company completed the sale of its employee voluntary benefits business for $2 billion [9] - A $1 billion share repurchase program was instituted, with $100 million already executed in the first quarter [76] Q&A Session Summary Question: Views on competition and pricing aggressiveness - Management noted a reduction in the rate of increases in auto insurance and characterized the market as rational, with no aggressive rate reductions expected [33][34] Question: Insights on policy in force (PIF) count and retention - Management indicated that new business levels were up significantly, and retention is stabilizing, with efforts in the SAVE program aimed at improving customer interactions [37][41] Question: Capital position and allocation strategy - Management expressed comfort with the current capital position and outlined a balanced approach to capital allocation, focusing on growth and shareholder returns [75][76] Question: Impact of California's competitive environment on bundling strategy - Management acknowledged that competitors facing challenges in California could create opportunities for the company, particularly in the auto business [82][84] Question: Retention and SAVE program effectiveness - Management emphasized the importance of addressing customer defection triggers and improving customer experience through the SAVE program [108]

Financial Performance - Allstate's total revenue increased by 7.8% year-over-year to $16.5 billion[5] - Net Income was $566 million, and Adjusted Net Income reached $949 million ($3.53 per share)[5] - The Adjusted Net Income return on equity was 23.7% over the last twelve months[5] Property-Liability Underwriting - Property-Liability underwriting income was $360 million, a decrease of $538 million compared to the prior year[10] - The Property-Liability combined ratio was 97.4, an increase of 4.4 points[10] - Auto Insurance underwriting income was $816 million with a combined ratio of 91.3[10] - Homeowners Insurance reported an underwriting loss of $451 million with a combined ratio of 112.3, impacted by catastrophe losses[10] Catastrophe Losses and Reinsurance - Gross catastrophe losses for the first quarter of 2025 totaled $3.3 billion[10, 13] - Reinsurance recoveries amounted to $1.1 billion, offsetting some of the catastrophe losses[10, 14] - The catastrophe loss ratio reached 23.8% of earned premium, surpassing 3 standard deviations above the 10-year average[13] Policy Growth and Distribution - Property-Liability policies in force increased by 0.1%, representing an increase of 19 thousand policies[17] - Homeowners policies in force increased by 2.5%, representing an increase of 185 thousand policies, offsetting a decrease in auto policies[17] - New issued applications for Property-Liability personal lines increased across all channels, with exclusive agents showing a 27.1% increase, independent agents a 31.2% increase, and direct channels a 10.0% increase[17] Investments - The investment portfolio is allocated with approximately 81% in interest-bearing assets and 19% in growth-oriented equity assets[20] - Market-based fixed income investments totaled $60.3 billion[20] Protection Services - Protection Services adjusted net income was $162 million, a 7.0x increase since 2018[24] - Protection Plans policies in force reached 39 million[24]