Bob Hong's questions to Allstate Corp (ALL) leadership • Q4 2024
Question
Bob Hong asked if there is a predictable lag, perhaps 6-9 months, between achieving state-level profitability and resuming growth. He also inquired about the risk of adverse selection and the sustainability of the auto combined ratio as industry competition for growth intensifies.
Answer
CEO Thomas Wilson acknowledged the general logic that profitability must precede growth but cautioned against a simple formulaic extrapolation, as each state's competitive landscape is unique. Regarding the competitive environment, Wilson stated that the auto market was already highly competitive in 2024 and that Allstate is well-equipped to compete. He also contrasted this with the homeowners market, where he sees a significant growth opportunity as competitors retreat, and noted the goal is to have this growth properly valued by investors.