Allstate's Q4 2024 Earnings Call: Contradictions in PIF Growth, Agent Compensation, and Retention Strategies
Earnings DecryptThursday, Feb 6, 2025 6:34 pm ET
4min read
These are the key contradictions discussed in Allstate's latest 2024Q4 earnings call, specifically including: PIF Growth Projections, Agent Compensation Changes, and Retention Trends:
Revenue and Earnings Growth:
- Allstate reported revenue of $16.5 billion for Q4, up 11.3% compared to the prior year quarter, and generated net income of $1.9 billion.
- The growth was driven by increases in Property-Liability earned premiums and net investment income.
Property-Liability Performance and Underwriting Results:
- Fourth-quarter Property-Liability underwriting income improved by $507 million to $1.8 billion compared to the prior year quarter.
- Successful risk and return management, including the execution of the profit improvement plan and higher net investment income, contributed to these results.
Auto Insurance Profitability:
- Auto insurance generated $603 million of underwriting income, showing a $510 million improvement from the prior year quarter.
- This improvement was due to the successful execution of the auto profit improvement plan, which restored profitability to target levels.
Homeowners Insurance Growth and Loss Performance:
- Homeowners insurance produced $1.1 billion in underwriting income, with policies in force increasing by 2.4%.
- Growth was driven by increased written premiums and strong underlying loss performance, despite higher catastrophe losses in some states.
Investment and Asset Allocation Strategies:
- Net investment income increased by 37.9% above the prior year, with fixed income yields rising to 4.4%.
- The increase in income resulted from a proactive approach to portfolio management, including repositioning assets into higher-yielding, longer-duration investments.
total revenue(6531)roe(average)(6531)p/e(6531)net income(6531)total revenue ; roe(average) ; p/e ; net income(6531)debt-to-equity ratio(6531)free cash flow(6531)operating cash flow(6531)
Total Revenue(USD)2024.12.31  | ROE(Average)%2024.12.31  | P/E(TTM)2025.02.05 | Net Income(USD)2024.12.31 | Debt-to-Equity Ratio2024.12.31 | Free Cash Flow(USD)2024.12.31 | Operating Cash Flow(USD)2024.12.31 |
|---|---|---|---|---|---|---|
| 187.79B | 24.29 | 49.80 | 20.00B | -- | -- | 45.64B |
| 173.39B | 19.32 | 41.83 | 5.68B | 0.45 | 8.10B | 16.71B |
| 100.81B | 14.95 | 34.49 | 5.78B | 0.75 | 16.18B | 2.37B |
| 96.47B | 32.91 | 23.54 | 26.54B | 0.03 | 78.02B | 39.11B |
| 96.47B | 32.91 | 23.30 | 26.54B | 0.03 | 78.02B | 39.11B |
| 94.93B | 157.41 | 36.32 | 14.74B | 1.87 | 117.40B | 26.81B |
| 83.43B | 14.38 | 14.34 | 7.96B | -- | 44.52B | 12.23B |
| 79.70B | 30.27 | 61.11 | 2.35B | 0.25 | 8.54B | 2.96B |
| 79.05B | 258.42 | 35.18 | 7.47M | 5.58 | 2.80B | 1.00B |
| 76.36B | -- | 27.06 | 830.00M | -3.52 | 4.04B | 4.15B |
Ticker |
|---|
| AMZNAmazon.com |
| WMTWalmart |
| UNHUnitedHealth Group |
| GOOGAlphabet C |
| GOOGLAlphabet A |
| AAPLApple |
| XOMExxon Mobil |
| COSTCostco Wholesale |
| CORCencora |
| MCKMcKesson |
View 6531 results
Revenue and Earnings Growth:
- Allstate reported revenue of $16.5 billion for Q4, up 11.3% compared to the prior year quarter, and generated net income of $1.9 billion.
- The growth was driven by increases in Property-Liability earned premiums and net investment income.
Property-Liability Performance and Underwriting Results:
- Fourth-quarter Property-Liability underwriting income improved by $507 million to $1.8 billion compared to the prior year quarter.
- Successful risk and return management, including the execution of the profit improvement plan and higher net investment income, contributed to these results.
Auto Insurance Profitability:
- Auto insurance generated $603 million of underwriting income, showing a $510 million improvement from the prior year quarter.
- This improvement was due to the successful execution of the auto profit improvement plan, which restored profitability to target levels.
Homeowners Insurance Growth and Loss Performance:
- Homeowners insurance produced $1.1 billion in underwriting income, with policies in force increasing by 2.4%.
- Growth was driven by increased written premiums and strong underlying loss performance, despite higher catastrophe losses in some states.
Investment and Asset Allocation Strategies:
- Net investment income increased by 37.9% above the prior year, with fixed income yields rising to 4.4%.
- The increase in income resulted from a proactive approach to portfolio management, including repositioning assets into higher-yielding, longer-duration investments.
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