On November 1, 2023, Allstate Corp (ALL, Financial) released its financial results for the third quarter of 2023. The company reported consolidated revenues of $14.5 billion, marking a 9.8% increase from the same period last year. Despite a net loss applicable to common shareholders of $41 million, the figure represents a significant 94.0% decrease from the previous year's loss of $685 million.
Financial Highlights
Allstate Corp (ALL, Financial) reported an adjusted net income of $214 million, a significant improvement from the net loss of $411 million in Q3 2022. The company's Property-Liability insurance premiums earned increased by 10.0% to $12.3 billion. However, the Property-Liability combined ratio recorded an increase of 4.0 points to 109.8. Catastrophe losses also saw a significant increase of 138.7% to $5.6 billion.
Tom Wilson, Chair, President, and CEO of The Allstate Corporation, commented on the results,
Allstate’s focus on improving profitability while implementing our growth strategy made excellent progress this quarter. Improved underwriting performance, strong investment income, and profits from Protection Services and Health and Benefits generated adjusted net income of $214 million, or $0.81 per diluted common share in the quarter."
Divestiture of Health and Benefits Businesses
Allstate Corp (ALL, Financial) is pursuing the sale of its Health and Benefits businesses, which are expected to be completed in 2024. The company believes that substantial value can be realized when these businesses are aligned with a broader set of complementary businesses and product offerings.
Future Outlook
Allstate Corp (ALL, Financial) continues to focus on its growth strategy, which includes raising auto and homeowners insurance prices, improving expense efficiencies, restricting growth in profit-challenged states, and enhancing claims practices. The company is also making significant progress in executing its strategy to increase property-liability market share and broaden protection provided to customers.
Summary
Allstate Corp (ALL, Financial)'s Q3 2023 financial results show a significant improvement in consolidated revenues and a decrease in net loss applicable to common shareholders. The company's focus on improving profitability and implementing its growth strategy has yielded positive results. With the potential sale of its Health and Benefits businesses, Allstate Corp (ALL) is poised for further growth and value enhancement.
Explore the complete 8-K earnings release (here) from Allstate Corp for further details.
