Allstate’s earnings beat estimates despite hurricane losses
Earnings per share rose for the fourth straight quarter.
Allstate’s third quarter results exceeded expectations despite more than a billion dollars in catastrophe losses related to Hurricanes Beryl, Debby, Francine and Helene.
Total revenues for the period reached $16.6 billion to notch a $2.1 billion increase from the same time in 2023, the company reported. Meanwhile, adjusted net income reached $1 billion in the quarter, compared to adjusted net income of $214 million during the same period last year.
“Successful execution of the auto insurance profit improvement plan benefited results generating $486 million of auto insurance underwriting income,” said Allstate CEO and President Tom Wilson.
“The homeowners’ insurance business is also generating good returns with an underwriting profit in the quarter despite $1.2 billion of catastrophe losses, 40% higher than the prior year quarter,” he added. “Third quarter results included Hurricanes Beryl, Debby, Francine and Helene where we deployed over 5,000 people to handle more than 100,000 claims. Strong performance from protection services, health and benefits and investments contributed to adjusted net income of $3.91 per share.”
In early Wall Street trading on Oct. 31, Allstate shares are up roughly 0.67% the last five days, near 9% higher the last three months and just over 38% higher year-to-date.
“P&C companies like Allstate have become a quiet go-to for investors diversifying away from mega cap growth stocks,” TradeStation’s Global Head of Market Strategy David Russell told PropertyCasualty360.com.
“They’re classic value names that have enjoyed pricing power at a time of higher inflation,” he said. “Wall Street now sees the potential for margin expansion as losses narrow, especially in auto policies. Organic growth could follow if the housing market expands in the coming years.”
Other highlights from Allstate’s third quarter 2024 include:
- Allstate brand auto rate increases resulted in an annualized total brand premium impact of 2.9% in the quarter and 6.3% through the first nine months of 2024.
- National general auto rate increases resulted in an annualized total brand premium impact of 1.7% in the quarter and 7.8% through the first nine months of 2024.
- Allstate brand homeowners’ rate increases resulted in an annualized total brand premium impact of 3.1% in the quarter and 7.6% through the first nine months of 2024.
- National general brand homeowners’ rate increases resulted in an annualized total brand premium impact of 2.2% in the quarter and 6.1% through the first nine months of 2024.
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