Q1 2024 Allstate Corp Earnings Call Transcript
Key Points
- Allstate Corp (ALL) reported a net income of $1.2 billion in the first quarter, indicating a broad-based profit improvement.
- Net investment income increased by almost 33%, benefiting from strategic repositioning into longer duration, higher fixed income yields.
- Property-Liability earned premium rose by 10.9% due to rate increases in auto and homeowners insurance.
- The auto insurance combined ratio improved by 8.4 points compared to the prior year quarter, reflecting the success of the profit improvement plan.
- Homeowners insurance profitability was strong, with a combined ratio of 82.1, translating to $564 million of underwriting income.
- Despite overall growth, Allstate brand policies in force decreased compared to the prior year, affected by profit improvement actions in auto insurance.
- The sale of the Health and Benefits business is expected to have a short-term negative impact on return on equity.
- In certain states, auto insurance profitability is still below target margins, necessitating further rate increases.
- Customer retention could be challenged by the large rate increases implemented in 2022 and 2023.
- There are ongoing needs for rate increases in key states like New York and New Jersey to achieve target profitability levels.
Good day, and thank you for standing by. Welcome to Allstate's First 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, Brent Vandermause, Head of Investor Relations. Please go ahead, sir.
Thank you, Jonathan. Good morning, and welcome to Allstate's First Quarter 2021 Earnings Conference Call. Yesterday, following the close of market, we issued our news release and investor supplement, filed our 10-Q and posted today's presentation, along with our reinsurance update on to our website at allstateinvestors.com. Our management team is here to provide perspective on these results and our strategy. 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-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
