Q3 2024 Allstate Corp Earnings Call Transcript
Key Points
- Allstate Corp (ALL) reported a 14.7% increase in total revenues, reaching $16.6 billion for the third quarter.
- The company achieved a return on equity of 26.1% over the last 12 months, indicating strong financial performance.
- The auto profit improvement plan successfully restored auto margins, positioning the property-liability business for growth.
- Homeowners insurance generated an underwriting profit of $249 million for the first nine months of 2024, despite significant catastrophe losses.
- The protection plans business saw a 23.1% increase in revenues, driven by growth in international markets and a recent acquisition to enhance mobile phone protection capabilities.
- The auto insurance policy growth is challenged by a decline in customer retention, which fell to 84.7%, 0.2 points below the prior year quarter.
- The catastrophe loss ratio increased by 2.8 points compared to the prior year quarter, impacting overall profitability.
- The expense ratio increased by 0.3 points due to higher advertising costs as the company accelerates growth investments.
- The Health and Benefits segment saw a $32 million decrease in adjusted net income due to increased benefit utilization across all three businesses.
- Retention in the auto insurance segment has been negatively impacted by significant rate increases, leading to a decline in policies in-force.
Good day, and thank you for standing by. Welcome to Allstate's third quarter investor call. (Operator Instructions) As a reminder, please be aware this call is being recorded.
And now I'd like to introduce your host for today's program, Allister Gobin, Head of Investor Relations. Please go ahead, sir.
Thank you, Jonathan. Good morning. Welcome to Allstate's third quarter 2024 earnings conference call. Yesterday, following the close of the market, we issued our news release and investor supplement, filed our 10-Q and posted related material on our website at allstateinvestors.com.
Our management team will provide perspective on our strategy and update on 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-looking statements about Allstate's operations. Allstate's
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