The Allstate Corporation reported robust financial results for the third quarter of 2024, with consolidated revenues increasing by 14.7% to $16.627 billion compared to the prior year. Net income applicable to common shareholders reached $1.161 billion, translating to $4.33 per diluted share. Adjusted net income stood at $1.048 billion, or $3.91 per diluted share, with an adjusted net income return on equity of 26.1% over the trailing twelve months.
The Property-Liability segment showed significant improvement, achieving an underwriting income of $495 million, a substantial turnaround from a $414 million loss in the prior year quarter. The recorded combined ratio for this segment improved by 7.0 points to 96.4, while the underlying combined ratio improved by 8.7 points to 83.2. Auto insurance underwriting income was $486 million, with a recorded combined ratio of 94.8, reflecting successful profit improvement efforts.
Despite these gains, catastrophe losses remained elevated at $1.703 billion, a 44.2% increase from the prior year quarter, impacting homeowners' profitability. Homeowners insurance, however, still generated an underwriting profit despite $1.231 billion in catastrophe losses, with an underlying combined ratio of 62.1. The Protection Services segment continued its growth trajectory, with revenues up 17.9% to $822 million, driven by a 23.1% increase in Allstate Protection Plans revenue and a 155.2% increase in Arity revenue.
Allstate Protection auto new business sales increased by 26%, though overall auto policies in force declined due to retention challenges from significant price increases. Homeowners policies in force grew by 2.5%. Net investment income rose to $783 million, an increase of $94 million, contributing to a total return on the investment portfolio of 3.7% for the quarter. The company also noted that the divestiture of its Employer Voluntary Benefits business is expected in the first half of 2025.
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