Allstate Corp Stock Price, News & Analysis

Allstate emphasizes the importance of disaster preparedness during National Preparedness Month, highlighting that a billion-dollar disaster occurs every 18 days. The company offers key tips for disaster readiness, including creating an emergency communication plan, assembling an emergency kit, staying informed about local threats, organizing important documents, and practicing household drills.

Mike Fiato, Executive VP and Chief Claims Officer at Allstate, notes that the company has assisted 7 million customers with catastrophe claims over the past 20 years. A recent study by Allstate, the U.S. Chamber of Commerce, and its Foundation reveals that every $1 spent on climate resilience and preparedness saves communities $13 in damages and economic impact. The report also provides recommendations for improving resilience, such as awareness and education, home security measures, and structural improvements.

AM Best has affirmed and adjusted credit ratings for The Allstate and its subsidiaries. Key points include:

• Affirmed A+ (Superior) Financial Strength Rating for Allstate Insurance Group
• Downgraded Allstate New Jersey Insurance Group to A- (Excellent) with negative outlook
• Downgraded Direct General Life and National Health Insurance to A (Excellent)
• Ratings reflect Allstate's very strong balance sheet, strong performance, and favorable market position
• Recent challenges in auto and property insurance markets noted
• Allstate implementing profit improvement plans, including rate increases and underwriting actions

The ratings consider Allstate's strong financial flexibility, capital generation capabilities, and ongoing efforts to improve operational results amid challenging macro-economic trends.

AM Best has placed the credit ratings of American Heritage Life Insurance Company under review with negative implications following the announcement of its acquisition by StanCorp Financial Group from The Allstate [NYSE: ALL]. The Financial Strength Rating (A+ Superior) and Long-Term Issuer Credit Rating (aa- Superior) may face a potential one-notch downgrade upon completion of the sale, expected in the first half of 2025. This review is not due to a change in American Heritage's creditworthiness but reflects its departure from the Allstate organization and StanCorp's lower current ratings. The transaction, which involves Allstate's employer voluntary benefits business, requires regulatory approval.

Allstate (NYSE: ALL) has reported estimated catastrophe losses of $542 million ($428 million after-tax) for July 2024. The losses encompass 20 events, with a total estimated cost of $587 million. Notably, Hurricane Beryl contributed significantly to these losses, with an initial loss estimate of $226 million. This announcement highlights the substantial financial impact of natural disasters on the insurance giant during a single month, potentially affecting its quarterly financial performance and shareholder value.

The Standard is set to acquire Allstate's Employer Voluntary Benefits business for approximately $2 billion, with the deal expected to close in the first half of 2025. This acquisition will significantly accelerate The Standard's growth and expand its competitive position in the U.S. employee benefits market.

Key points of the agreement include:

• A product distribution partnership between the two companies
• The Standard becoming Allstate's exclusive carrier for various group and individual insurance products
• Allstate's EVB business, employees, and operations transferring to The Standard
• A five-year exclusive distribution arrangement for Allstate agents

This strategic move aims to provide broader protection and higher value to over 3.5 million customers currently served by Allstate's EVB business.

Allstate (NYSE: ALL) has announced a $2.0 billion sale of its Employer Voluntary Benefits business to StanCorp Financial Group, Inc. (The Standard). This move is part of Allstate's strategic decision to enable its Health & Benefits businesses to realize their full growth potential. The deal includes:

• Protection for over 3.5 million customers
• A five-year exclusive distribution arrangement for Allstate agents
• Expected gain of about $600 million for Allstate
• Increase in deployable capital by $1.6 billion

The transaction is expected to close in the first half of 2025, subject to customary conditions and approvals. Allstate is also in discussions to sell its Individual and Group Health businesses.

A new survey by Intuit QuickBooks and Allstate Health Solutions reveals the critical role of healthcare benefits in employee retention and hiring. 78% of employees would seek new employment if their benefits package was inadequate. The survey, involving 1,000 employees from small and large businesses, found that healthcare benefits rank second only to salary when considering job offers.

Key findings include:

• 23% of employees struggle to afford employer-provided benefits
• 71% of workers at small companies and 63% at large companies face challenges saving long-term due to medical costs
• 60% of employees desire a range of benefits options
• Over 90% of employees link job satisfaction to benefits

The survey highlights the importance of competitive, affordable benefits packages in today's tight labor market.

Allstate (NYSE: ALL) reported strong Q2 2024 results, with consolidated revenues up 12.4% to $15.7 billion. The company achieved net income of $301 million, compared to a loss in the prior year quarter. Adjusted net income was $429 million, or $1.61 per diluted share. Property-Liability premiums earned increased 11.9% to $13.3 billion, driven by higher average premiums from rate increases. The underlying combined ratio improved to 85.3, reflecting better execution of the profit improvement plan. Allstate Protection auto insurance saw improved profitability, while homeowners insurance growth reflected higher average premiums and increased policies in force. Protection Services revenues grew 12.7% to $773 million, primarily due to Allstate Protection Plans and Arity. The investment portfolio generated net investment income of $712 million, up $102 million from the prior year quarter.

Allstate (NYSE: ALL) has reported estimated catastrophe losses for June 2024 of $230 million pre-tax ($182 million after-tax). These losses stem from 18 events, primarily due to widespread wind and hail events. For the second quarter of 2024, total catastrophe losses reached $2.12 billion pre-tax ($1.67 billion after-tax). The company's year-to-date catastrophe losses through June amounted to $2.85 billion pre-tax ($2.25 billion after-tax). Allstate regularly posts financial information and material announcements on their investor relations website.