NYSE$ALL

Allstate Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Allstate experienced a net loss due to auto insurance underwriting losses, but revenues increased driven by Property-Liability premiums growth.

Allstate reported a net loss of $310 million in Q4 2022, impacted by auto insurance underwriting losses. Revenues increased to $13.6 billion, driven by a 9.5% growth in Property-Liability premiums. The company is implementing a plan to improve auto insurance margins and continues to execute its Transformative Growth strategy.

  • Net loss of $310 million in the fourth quarter, impacted by auto insurance underwriting losses.
  • Revenues increased to $13.6 billion, driven by 9.5% growth in Property-Liability premiums.
  • Comprehensive plan being implemented to improve auto insurance margins.
  • Transformative Growth strategy execution continues to increase shareholder value.

Headline financials

Total Revenue

$11.5B

Previous: $10.3B+11.4%
EPS (adj)

-$1.36

Previous: $2.75-149.5%
P&C Combined Ratio

99.2%

Previous: 98.9%+0.3%
Capital Expenditures

$68M

Previous: $59M+15.3%
Free Cash Flow

$902M

Previous: $812M+11.1%
Net Income

-$303M

Previous: $791M-138.3%
Operating Income

-$420M

Previous: $1.39B-130.2%
Gross Profit

$6.2B

Previous: $43.3B-85.7%
Cash & Equivalents

$736M

Previous: $763M-3.5%
Total Assets

$98B

Previous: $99.4B-1.5%

Revenue & EPS history

Allstate · Revenue · Quarterly

$11.5B

Q4 2022+11.4%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Allstate · $607M total across 4 segments · Q1 2023

  • Protection Plans
    $385M
  • Dealer Services
    $148M
  • Arity
    $37M
  • Identity Protection
    $37M

Forward guidance

Allstate is focused on restoring auto profitability and executing its Transformative Growth strategy to increase shareholder value. This includes increasing average premiums, reducing expenses, and launching new products.

Tailwinds

  • Continued pursuit of rate increases and underwriting actions to improve auto insurance profitability.
  • Expansion of affordable, simple, and connected auto insurance product to more states in 2023.
  • Leveraging expertise in data and analytics for a differentiated direct-to-consumer experience.
  • Proactive risk and return management of the investment portfolio.
  • Capital management actions to benefit shareholders through dividends and share repurchases.

Headwinds

  • Auto insurance underwriting losses negatively impacting results.
  • Higher auto insurance prices not sufficient to overcome increased loss costs and reserve increases.
  • Increased claims severity and higher unfavorable prior year reserve reestimates.
  • Increased catastrophe losses.
  • Lower performance-based investment income.

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 Q4 2022

Historical avgQ4 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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