NEW YORK - Allstate Corporation (NYSE:ALL) reported fourth-quarter earnings that exceeded analyst estimates, driving its shares up 3.6% in after-hours trading.
The insurance giant’s strong performance was fueled by improved underwriting results in its Property-Liability segment and higher investment income.
Allstate posted adjusted earnings per share of $7.67 for the fourth quarter, significantly higher than the $5.82 reported in the same period last year. Revenue for the quarter came in at $16.5 billion, surpassing the consensus estimate of $15.96 billion and marking an 11.3% increase YoY.
The company’s net income applicable to common shareholders rose to $1.9 billion in Q4 2024, up from $1.5 billion in the prior year quarter. Total (EPA:TTEF) revenues for the full year 2024 reached $64.1 billion, a 12.3% increase from 2023.
Tom Wilson, Chair, President and CEO of The Allstate Corporation, commented on the results: "Allstate finished 2024 with another excellent quarter both financially and strategically. Fourth quarter revenue reached $16.5 billion and net income was $1.9 billion, 11.3% and 30.1% above the prior year quarter, respectively."
Investment income played a significant role in Allstate’s performance, increasing to $3.1 billion in 2024, 24.8% above the prior year. This growth was attributed to repositioning into higher-yielding fixed income securities, portfolio growth, and stronger performance-based results.
The company’s homeowners insurance segment generated $1.3 billion of underwriting income for the year while covering $3.7 billion of customers’ catastrophe losses. Allstate also noted that losses from the January California wildfires are expected to be about $1.1 billion, pre-tax, net of reinsurance.
Looking ahead, Allstate expects total Property-Liability policies in force to grow in 2025 as auto insurance policy renewal rates improve and new business continues to increase.
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