Operating income was significantly high in Q4 2023 due to a combination of factors. **Improved underwriting results**—evidenced by a better Property-Liability combined ratio—and substantially lower catastrophe losses contributed to stronger operational performance. Additionally, **higher premiums earned** and positive **net gains on investments and derivatives** further boosted income, while **improved management of operating costs** helped enhance profitability overall.  **[0000899051-24-000005_allcorp123123earningsrelea.htm:0]** **[0000899051-24-000005_allcorp123123investorsup.htm:6]** 

Why was operating income so high in Q4 2023?

The net income turned positive in **Q4 2023** primarily due to a remarkable turnaround in the company’s **property-liability underwriting results**. The underwriting income improved dramatically, driven by **higher earned premiums** and a significant reduction in **catastrophe losses** (a decline of **91.3%**, from **$779 million** down to **$68 million**). Additionally, **higher consolidated revenues**—with Property-Liability earned premiums rising by **10.7%**—contributed to the improvement, while **lower investment losses** also helped offset previous negative factors.  **[0000899051-24-000005_allcorp123123earningsrelea.htm:0]** **[0000899051-24-000005_allcorp123123earningsrelea.htm:2]** 

Why did net income turn positive in Q4 2023?

The positive net gains in Q3 2024 were driven by several key factors. **Valuation gains on equity investments** contributed **$119 million**, reversing a previous loss, while **gains on sales of fixed income securities** provided an additional **$116 million**. Moreover, **derivatives gains** added **$20 million** and were complemented by **improved market conditions**—notably, lower interest rates that boosted fixed income valuations and increased unrealized net capital gains by **$1.7 billion**.  **[0000899051-24-000083_all-20240930.htm:13]** **[0000899051-24-000083_all-20240930.htm:94]** **[0000899051-24-000083_all-20240930.htm:95]** 

What drove the positive net gains on investments in Q3 2024?

The strong revenue growth in Q3 2024 was primarily driven by **increased property-liability earned premiums** (up **11.6%** to **$13.7 billion**), **higher realized capital gains on investments**, and an improvement in **net investment income** (which increased by **$94 million** to **$783 million**).  **[0000899051-24-000082_allcorp93024earningsreleas.htm:1]** **[0000899051-24-000083_all-20240930.htm:64]** 

What contributed to the strong revenue growth in Q3 2024?

Operating expenses in Q3 2024 increased sharply due to several key factors. **Allstate Health and Benefits** experienced a **$35 million** rise driven by growth in individual and group health businesses.  **[0000899051-24-000083_all-20240930.htm:88]**  In the **Protection Services** segment, there was a **24.4% increase or $55 million** surge, primarily from expansion at Arity and Allstate Protection Plans, which was partially offset by lower expenses in other areas.  **[0000899051-24-000083_all-20240930.htm:86]**  Additionally, the **Corporate and Other** segment saw its expenses rise from **$39 million to $47 million**. These increases, along with higher advertising costs and other growth-related expenses, contributed significantly to the overall rise in operating costs and expenses.  **[0000899051-24-000082_allcorp93024investorsupp.htm:12]** **[0000899051-24-000082_allcorp93024earningsreleas.htm:9]** **[0000899051-24-000083_all-20240930.htm:65]** 

Why did operating expenses rise sharply in Q3 2024?

03a5c539c27738c1324a4e28650f8dff8be9d9a1ba471087d16655c8fc334c82

The sharp drop in cash in Q2 2024 was primarily driven by **investing activities**. Specifically, there were **higher purchases of fixed income securities** and **lower proceeds from sales of equity securities** that resulted in significant cash outflows. Although **operating activities** generated strong cash inflows, they were not enough to counterbalance the heavy use of cash in investing, with **financing activities** also contributing by reducing outflows compared to the previous period.  **[0000899051-24-000054_all-20240630.htm:5]** 

What contributed to the sharp drop in cash in Q2 2024?

The jump in **total assets** in Q3 2024 was primarily driven by several key factors. There was significant **growth in investments**, with **fixed income securities** rising from **$48,865 million** to **$53,961 million**, along with increases in **limited partnership interests** and **short-term investments**. Additionally, **premium installment receivables** increased from **$10,044 million** to **$11,041 million**, and the company added **$3,163 million** in **assets held for sale**, which had not been present at the end of 2023. Finally, **cash** grew from **$722 million** to **$816 million**. These factors collectively contributed to the notable increase in total assets during Q3 2024.  **[0000899051-24-000083_all-20240930.htm:3]** **[0000899051-24-000082_allcorp93024earningsreleas.htm:8]** **[0000899051-24-000083_all-20240930.htm:12]** 

Why did total assets jump significantly in Q3 2024?

The documents do not provide specific factors driving the increase in debt for Q3 2024. They only note that the debt rose slightly from **$7,942 million** at the end of Q4 2023 to **$8,083 million** in Q3 2024, without detailing the reasons behind this change.  **[0000899051-24-000083_all-20240930.htm:3]** **[0000899051-24-000082_allcorp93024earningsreleas.htm:8]** 

What factors drove the increase in debt in Q3 2024?

In Q3 2024, the **decline in the value of equity securities** was driven by several factors. **Valuation changes** amid market conditions affected the fair value, and although there were gains from these changes, they were offset by other factors. The company experienced **$85 million in net losses from sales** of equity securities, and adjustments in its portfolio—including exposure to investments in fixed income securities—also contributed to the reduction. Additionally, the **lower unrealized net gains** compared to previous periods further impacted the overall valuation.  **[0000899051-24-000083_all-20240930.htm:13]** **[0000899051-24-000083_all-20240930.htm:89]** 

Why did the value of equity securities decline in Q3 2024?

544fbe451e0dbbf0c8d5c88aa59f341760e3020997b053d7fd97a65c976aaeaa

The surge in **Operating Cash Flow** in Q1 2024 was mainly driven by a **significant turnaround in net income**, which moved from a loss of **$321 million** in Q1 2023 to a profit of **$1,198 million** in Q1 2024. Additionally, there was a smaller increase in **policy benefits and other insurance reserves** (with a change of **$323 million** versus **$1,080 million** in Q1 2023) and a more favorable impact from **income taxes** (a positive change of **$217 million** compared to a negative **-$125 million** in Q1 2023), despite a larger outflow related to **premium installment receivables**. These factors collectively resulted in the robust increase in cash flow from operations.  **[0000899051-24-000024_all-20240331.htm:5]** 

What drove the surge in Operating Cash Flow in Q1 2024?

Operating cash flow nearly tripled in Q3 2024—from **$1,233 million** in Q3 2023  **[0000899051-23-000076_all-20230930.htm:5]**  to **$3,201 million** in Q3 2024  **[0000899051-24-000083_all-20240930.htm:5]** —due to several key factors. The most important reasons include a major swing in net income, which changed from a loss to a profit, a significant improvement in **reinsurance recoverables** (shifting from a cash outflow to an inflow), and a positive turn in **income taxes** (moving from a cash outflow to an inflow). Enhancements from increased collections in **unearned premiums** and adjustments in **policy benefits and insurance reserves** also contributed to this substantial jump in operating cash flow.   

Why did Operating Cash Flow nearly triple in Q3 2024?

The decline in **Operating Cash Flow** for **FY 2023** was primarily driven by a **significant reduction in cash inflows from policy benefits and other insurance reserves**—down from **$4,445 million** in FY 2022 to **$2,202 million** in FY 2023. This decrease was compounded by **lower contributions from unearned premiums** (a slight reduction from **$2,539 million** to **$2,385 million**), and a reduced negative impact from **premium installment receivables, net** (improving from a reduction of **$(1,038) million** to **$(861) million**). Although there were positive factors, such as a **smaller net loss** (improving from **$(1,342) million** to **$(213) million**), **increased cash inflows from reinsurance recoverables** (from **$451 million** to **$807 million**), and **lesser cash outflows due to income taxes** (improving from **$(715) million** to **$(229) million**), these did not fully offset the reduction in key cash inflows. Overall, these factors contributed to a net decrease of **$893 million** in Operating Cash Flow for FY 2023.  **[0000899051-24-000013_all-20231231.htm:154]** 

What factors contributed to the decline in Operating Cash Flow in FY 2023?

The sharp increase in fixed income securities sales in Q3 2024 was driven primarily by the company's ongoing portfolio management activities, which boosted net gains on investments and derivatives. Specifically, these activities included valuation gains on equity investments and gains from the sales of fixed income securities, significantly raising proceeds compared to earlier periods.  **[0000899051-24-000083_all-20240930.htm:5]** **[0000899051-24-000083_all-20240930.htm:95]** 

What drove the sharp increase in fixed income securities sales in Q3 2024?

The change was driven primarily by improvements in market conditions and portfolio management strategies. Specifically, **equity investments saw a large turnaround**, with valuation gains of **$119 million** in Q3 2024 compared to a **$35 million loss** in Q3 2023. Additionally, **fixed income securities delivered gains of $105 million** (in contrast to losses of **$129 million**) in Q3 2024, reflecting more favorable pricing and sales results. Although derivatives and other investments contributed more modestly, these two areas were the key factors that reversed the previous negative trend, leading to a net gain of **$243 million** in Q3 2024 versus a loss of **$86 million** the prior year.  **[0000899051-24-000083_all-20240930.htm:13]** **[0000899051-24-000083_all-20240930.htm:13]** **[0000899051-24-000083_all-20240930.htm:95]** **[0000899051-24-000083_all-20240930.htm:36]** 

Why did gains on investments turn into losses in Q3 2024?

3204fd09e143b23a1c1b759825a9f27d02179017cacc8a0e471a68445e483345

cee8977d74755f8e1c63cff4cd6338cb0efd7868bb3226830a43441bf53063c7

Property and Casualty Insurance Premiums (USD, millions)

Accident and Health Insurance Premiums and Contract Charges (USD, millions)

Other Revenue (USD, millions)

Net Investment Income (USD, millions)

Net Gains (Losses) on Investments and Derivatives (USD, millions)

Total Revenues (USD, millions)

Property and Casualty Insurance Claims and Claims Expense (USD, millions)

Accident, Health and Other Policy Benefits (USD, millions)

Amortization of Deferred Policy Acquisition Costs (USD, millions)

Operating Costs and Expenses (USD, millions)

Pension and Other Postretirement Remeasurement (Gains) Losses (USD, millions)

Restructuring and Related Charges (USD, millions)

Amortization of Purchased Intangibles (USD, millions)

Interest Expense (USD, millions)

Total Costs and Expenses (USD, millions)

Income (Loss) from Operations Before Income Tax Expense (USD, millions)

Income Tax Expense (Benefit) (USD, millions)

Net Income (Loss) (USD, millions)

Net Income (Loss) Attributable to Allstate (USD, millions)

Preferred Stock Dividends (USD, millions)

Net Income (Loss) Applicable to Common Shareholders (USD, millions)

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824618e12741447e991137fb8f5b73be0f2abf733b3e59f20ab48e80a9692f20

2ababbe8d2f6588945c0d356d0625114792b2dd88c6079e339d7b02956e3b4d5

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

e762ce3de22ba862ee0b661ff91124dbd0a5e6746c54462589ad167a3af2f5af

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

7182a9e051020421bfe50663d39a159dd8cf778d9ff18e6c3bf393d47d598412

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88f7a5aa51bd5c48a08ce82bf277fd47c80476e0ef0b7932d72afa25152e49e3

ALLSTATE (ALL)

Financials