Q2 2024 Allstate Corp Earnings Call Transcript
Key Points
- Allstate Corp (ALL) reported a net income of $301 million for the second quarter, despite elevated catastrophe losses.
- The auto profit improvement plan has been successfully executed, leading to a significant improvement in the auto insurance combined ratio.
- Homeowners insurance showed improved underlying performance with a combined ratio of 111.5, resulting in $375 million of underwriting losses compared to $1.3 billion in the prior year.
- Net investment income increased by almost 17% over the prior year quarter, benefiting from repositioning into longer-duration and higher-yielding assets.
- Protection Services experienced profitable growth, with revenues increasing by 12.7% compared to the prior year quarter.
- The expense ratio increased by 0.8 points compared to the prior year due to higher advertising costs.
- Catastrophe losses of $2.1 billion were still significant, although 6.7 points favorable to the prior year quarter.
- The underlying combined ratio for homeowners insurance, while improved, still resulted in underwriting losses.
- The company is facing challenges in certain states like New York and New Jersey, where significant rate increases have impacted retention.
- The process of divesting the health benefits business has been delayed, impacting the timeline for potential value realization.
Please standby for streaming text.
Good day for standing by, and welcome to Allstates second quarter earnings investor call. (Operator Instructions) As a reminder, please be aware that this call is being recorded. And now I'd like to introduce your host for today's program. Brett vendor means Head of Investor Relations. Please go ahead, sir.
Thank you, Jonathan, and good morning. Welcome to all states Second Quarter 2024 earnings conference call. Yesterday, Following the close of market, we issued our news release and investor supplement filed our 10 Q and posted related material on our website at allstatesinvestors.com. Our management team will provide perspective on our strategy and an update on our results.
After prepared remarks, we will have a question and answer session. As noted on the first slide of the presentation, our discussion will contain non-GAAP measures for which there are reconciliations in the news release and investor supplement and forward
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