NYSE$ALL

Allstate Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Allstate experienced a challenging economic environment, navigated cost increases, and executed growth strategies.

Allstate Corporation reported a net loss of $694 million for Q3 2022, compared to a net income of $508 million in the prior year quarter. The loss was primarily due to an underwriting loss and equity valuation declines. Revenues increased to $13.2 billion, driven by growth in Property-Liability earned premiums and Protection Services revenue. The company is raising insurance prices to reflect cost inflation and plans to reduce personal lines insurance in states with unacceptable margins.

  • Total revenues increased by 5.8% to $13.2 billion, driven by a 9.8% increase in Property-Liability earned premium and a 7.2% increase in Protection Services revenue.
  • Net loss applicable to common shareholders was $694 million, compared to a net income of $508 million in the prior year quarter.
  • Adjusted net loss was $420 million, or $1.56 per diluted share, compared to adjusted net income of $217 million in the prior year quarter.
  • The Property-Liability combined ratio was 111.6, 6.3 points higher than the prior year quarter, resulting in an underwriting loss of $1.3 billion.

Headline financials

Total Revenue

$13.2B

Previous: $12.5B+5.8%
EPS (adj)

-$1.56

Previous: $0.73-313.7%
P&C Combined Ratio

111.6%

Previous: 105.3%+6.0%
Auto Combined Ratio

117.4%

No prior period
Homeowners Combined Ratio

91.2%

No prior period
Capital Expenditures

-$352M

Previous: -$286M-23.1%
Free Cash Flow

-$1.02B

Previous: $252M-504.8%
Net Income

-$668M

Previous: $538M-224.2%
Operating Income

$9.58B

Previous: $8.87B+8.0%
Gross Profit

$11.5B

Previous: $10.9B+5.8%
Cash & Equivalents

$786M

Previous: $690M+13.9%
Total Assets

$97.7B

Previous: $133B-26.8%

Revenue & EPS history

Allstate · Revenue · Quarterly

$13.2B

Q3 2022+5.8%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Allstate · $575M total across 4 segments · Q3 2022

  • Protection Plans
    $349M
  • Dealer Services
    $143M
  • Arity
    $49M
  • Identity Protection
    $34M

Forward guidance

Allstate is implementing a multi-faceted program to restore Property-Liability margins to targeted levels. This includes continued increases in auto and home insurance prices, reducing expenses and adapting claims settlement practices to a high inflation environment. Growth is being reduced in states and lines of business that are underperforming.

Tailwinds

  • Continued increases in auto and home insurance prices.
  • Reducing expenses.
  • Adapting claims settlement practices to a high inflation environment.
  • Growth is being reduced in states and lines of business that are underperforming.
  • The company is taking a balanced approach to serve customers while generating appropriate returns for investors.

Headwinds

  • The company will no longer write new homeowners and condominium business in California.
  • Commercial insurance is being exited in five states.
  • Coverage to transportation network companies will not be offered unless it utilizes telematics-based pricing.
  • Additional actions are likely in personal auto insurance.
  • The company is facing a challenging inflationary environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.3%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.1%

Avg return

30 days after

53%

39 / 73 earnings

Positive

+5.7%

Q2 2025

Best reaction

-9.9%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+2.9%-2.8%
Q4 2025+3.9%-2.9%+2.5%
Q3 2025+1.5%+6.5%+3.9%
Q2 2025+5.7%+6.9%+5.8%
Q1 2025-0.6%+1.8%+5.8%
Q4 2024-0.6%-1.9%+4.0%
Q3 2024-0.0%-2.3%+11.2%
Q2 2024+2.2%-2.6%+8.8%
Q1 2024-0.5%+0.0%-1.5%
Q4 2023+2.8%+1.3%-0.3%
Q3 2023+2.5%+1.9%+7.5%
Q2 2023-5.5%-2.5%-4.3%
Q1 2023+1.5%+3.3%-2.1%
Q4 2022+2.7%-7.6%-0.3%
Q3 2022-1.4%+2.4%+4.1%
Q2 2022-1.5%+2.2%+5.0%
Q1 2022+1.4%-0.6%+1.7%
Q4 2021+2.5%+5.1%+7.4%
Q3 2021-6.5%-6.5%-13.5%
Q2 2021-2.1%+1.5%+2.5%
Q1 2021+3.7%+5.2%+6.6%
Q4 2020-3.3%-3.1%+0.7%
Q3 2020-2.7%+1.0%+12.3%
Q2 2020-1.5%+0.7%-3.0%
Q1 2020+1.1%+0.4%+1.5%
Q4 2019+4.7%+4.5%-8.9%
Q3 2019-1.5%-0.7%+5.1%
Q2 2019+5.5%+2.7%+0.4%
Q1 2019-0.8%-1.4%-3.6%
Q4 2018+4.2%+4.1%+5.0%
Q3 2018-5.8%-5.3%-6.6%
Q2 2018+2.5%+3.4%+5.7%
Q1 2018-3.8%-3.4%-4.4%
Q4 2017-6.8%-6.1%-0.6%
Q3 2017+4.3%+5.6%+9.8%
Q2 2017+3.5%+3.5%-0.5%
Q1 2017+0.6%-0.9%+2.0%
Q4 2016+2.9%+3.8%+8.8%
Q3 2016+1.3%-0.5%+5.1%
Q2 2016+0.7%+1.6%+1.2%
Q1 2016+3.8%
Q4 2015+3.5%
Q3 2015+2.1%
Q2 2015-9.9%
Q1 2015-3.6%
Q4 2014+0.4%
Q3 2014+1.1%
Q2 2014+2.5%
Q1 2014+1.2%
Q4 2013+4.9%
Q3 2013-0.6%
Q2 2013+2.6%
Q1 2013-2.1%
Q4 2012+1.7%
Q3 2012-2.7%
Q4 2011+4.7%
Q2 2012+4.7%
Q1 2012+2.5%
Q3 2011-3.9%
Q2 2011-0.3%
Q1 2011-1.3%
Q4 2010-0.1%
Q3 2010-6.9%
Q2 2010-0.4%
Q1 2009+0.0%
Q1 2010+1.3%
Q4 2009-0.1%
Q4 2007-0.1%
Q3 2009-2.3%
Q3 2008-2.3%
Q2 2009+0.5%
Q2 2008+0.5%
Q4 2008+0.5%

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