ALLSTATE CORP
For the period ended Dec 31, 2023. Filed Feb 21, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 21, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Protection Services
2023 Form 10-K Protection Services
Protection Services Segment
Protection Services comprise Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity and Allstate Identity Protection. In 2023, Protection Services represented 78.5% of total PIF and 5.0% of premiums written. We offer consumer product protection plans, protection and insurance products (including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel and paintless dent repair protection), roadside assistance, device and mobile data collection services and analytic solutions using automotive telematics information, identity theft protection and remediation services. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information.
| Summarized financial information | |||
|---|---|---|---|
| For the years ended December 31, | |||
| ($ in millions) | 2023 | 2022 | 2021 |
| Premiums written | $2,663 | $2,699 | $2,642 |
| Revenues | |||
| Premiums | $2,243 | $1,995 | $1,764 |
| Other revenue | 319 | 347 | 354 |
| Intersegment insurance premiums and service fees (1) | 138 | 149 | 175 |
| Net investment income | 73 | 48 | 43 |
| Costs and expenses | |||
| Claims and claims expense | (632) | (532) | (458) |
| Amortization of DAC | (1,058) | (928) | (795) |
| Operating costs and expenses | (889) | (874) | (837) |
| Restructuring and related charges | (6) | (2) | (14) |
| Income tax expense on operations | (83) | (35) | (52) |
| Less: noncontrolling interest | (1) | (1) | 1 |
| Adjusted net income | $106 | $169 | $179 |
| Allstate Protection Plans | $117 | $150 | $142 |
| Allstate Dealer Services | (15) | 35 | 34 |
| Allstate Roadside | 24 | 7 | 7 |
| Arity | (18) | (11) | 3 |
| Allstate Identity Protection | (2) | (12) | (7) |
| Adjusted net income | $106 | $169 | $179 |
| Allstate Protection Plans | 145,292 | 138,726 | 141,073 |
| Allstate Dealer Services | 3,776 | 3,865 | 3,956 |
| Allstate Roadside | 553 | 531 | 525 |
| Allstate Identity Protection | 2,884 | 3,112 | 2,802 |
| Policies in force as of December 31 (in thousands) | 152,505 | 146,234 | 148,356 |
(1)Primarily related to Arity and Allstate Roadside and are eliminated in our consolidated financial statements.
Adjusted net income decreased 37.3% or $63 million in 2023 compared to 2022, due to an increase in state income taxes and deferred tax liabilities for Allstate Dealer Services, higher appliance and furniture claim severity at Allstate Protection Plans and lower third-party lead sales at Arity, partially offset by improved margins at Allstate Roadside and lower expenses at Allstate Identity Protection.
Premiums written decreased 1.3% or $36 million in 2023 compared to 2022, primarily due to a decrease at Allstate Dealer Services and lower rescue volumes at
Allstate Roadside, partially offset by international growth at Allstate Protection Plans.
PIF increased 4.3% or 6 million in 2023 compared to 2022 due to an increase at Allstate Protection Plans.
Other revenue decreased 8.1% or $28 million in 2023 compared to 2022, primarily due to reductions in third-party lead sales at Arity.
Intersegment premiums and service fees decreased 7.4% to $138 million in 2023 compared to 2022, driven by decreased device sales for the
54 www.allstate.com
2023 Form 10-KProtection Services
Drivewise® offering at Arity due to a shift from devices to a lower cost mobile phone program.
Claims and claims expense increased 18.8% or $100 million in 2023 compared to 2022, primarily driven by higher levels of claims at Allstate Protection Plans driven by growth in the business and higher severity at both Allstate Protection Plans and Allstate Dealer Services, partially offset by lower frequency at Allstate Roadside.
Amortization of DAC increased 14.0% or $130 million in 2023 compared to 2022, driven by revenue growth at both Allstate Protection Plans and Allstate Dealer Services.
Operating costs and expenses increased 1.7% or $15 million in 2023 compared to 2022, primarily due to growth at Allstate Protection Plans, partially offset by lower expenses at Arity.
Restructuring and related charges increased $4 million in 2023 compared to 2022, primarily due to restructuring charges at Allstate Roadside.
The Allstate Corporation 55
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.