ALLSTATE CORP
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Allstate Health and Benefits
Allstate Health and Benefits Segment Results
Allstate Health and Benefits Segment
| Summarized financial information | ||||||
|---|---|---|---|---|---|---|
| Three months ended June 30, · Six months ended June 30, | ||||||
| ($ in millions) · 2024 · 2023 · 2024 · 2023 | ||||||
| Revenues | ||||||
| Accident and health insurance premiums and contract charges | $474 | $453 | $952 | $916 | ||
| Other revenue | 121 | 101 | 255 | 202 | ||
| Net investment income | 25 | 21 | 48 | 40 | ||
| Costs and expenses | ||||||
| Accident, health and other policy benefits | (291) | (258) | (587) | (523) | ||
| Amortization of DAC | (32) | (34) | (74) | (75) | ||
| Operating costs and expenses | (224) | (210) | (449) | (413) | ||
| Restructuring and related charges | — | — | (1) | (4) | ||
| Income tax expense on operations | (15) | (16) | (30) | (30) | ||
| Adjusted net income | $58 | $57 | $114 | $113 | ||
| Benefit ratio (1) | 59.7 | 55.0 | 59.9 | 55.2 | ||
| Policies in force | ||||||
| Employer voluntary benefits (2) | 3,577 | 3,736 | ||||
| Group health (3) | 148 | 131 | ||||
| Individual health (4) | 456 | 406 | ||||
| Policies in force as of June 30 (in thousands) | 4,181 | 4,273 | ||||
(1)Benefit ratio is calculated as accident, health and other policy benefits less interest credited to contractholder funds of $8 million and $9 million for the three months ended June 30, 2024 and 2023, respectively, and $17 million for both the six months ended June 30, 2024 and 2023, divided by premiums and contract charges.
(2)Employer voluntary benefits include supplemental life and health products offered through workplace enrollment.
(3)Group health includes health products and administrative services sold to employers.
(4)Individual health includes short-term medical and other health products sold directly to individuals.
Adjusted net income increased $1 million in the second quarter of 2024 compared to the same period of 2023, primarily due to an increase in group health and employer voluntary benefits, partially offset by a decline in individual health. Adjusted net income increased $1 million in the first six months of 2024 compared to the same period of 2023, primarily due to an increase in group health.
Premiums and contract charges increased 4.6% or $21 million in the second quarter of 2024 and increased 3.9% or $36 million in the first six months of 2024 compared to the same periods of 2023, primarily due to growth in group health and individual health. The increase in the first six months of 2024 was partially offset by a decline in employer voluntary benefits.
| Premiums and contract charges by line of business | ||||
|---|---|---|---|---|
| Three months ended June 30, | Six months ended June 30, | |||
| ($ in millions) | 2024 | 2023 | 2024 | 2023 |
| Employer voluntary benefits | $246 | $245 | $494 | $500 |
| Group health | 120 | 110 | 238 | 217 |
| Individual health | 108 | 98 | 220 | 199 |
| Premiums and contract charges | $474 | $453 | $952 | $916 |
Other revenue increased $20 million in the second quarter of 2024 and increased $53 million in the first six months of 2024 compared to the same periods of 2023, primarily due to an increase in individual health and group health administrative fees.
Accident, health and other policy benefits increased 12.8% or $33 million in the second quarter of 2024 and increased 12.2% or $64 million in the first six months of 2024 compared to the same periods of 2023, primarily from growth in group health and individual health and higher benefit utilization.
Accident, health and other policy benefits include changes in the reserve for future policy benefits, expected development on reported claims, and reserves for incurred but not reported claims as shown in Note 9.
Second Quarter 2024 Form 10-Q 63
Segment Results Allstate Health and Benefits
Benefit ratio increased 4.7 points to 59.7 in the second quarter of 2024 compared to 55.0 in the second quarter of 2023 and increased 4.7 points to 59.9 in the first six months of 2024 compared to 55.2 in the same period of 2023, primarily due to higher benefit utilization in individual health and group health.
Amortization of DACdecreased 5.9% or $2 million in the second quarter of 2024 and decreased 1.3% or $1 million in the first six months of 2024 compared to the same periods of 2023.
| Operating costs and expenses | ||||
|---|---|---|---|---|
| Three months ended June 30, | Six months ended June 30, | |||
| ($ in millions) | 2024 | 2023 | 2024 | 2023 |
| Non-deferrable commissions | $86 | $78 | $177 | $157 |
| General and administrative expenses | 138 | 132 | 272 | 256 |
| Total operating costs and expenses | $224 | $210 | $449 | $413 |
Operating costs and expenses increased $14 million in the second quarter of 2024 and increased $36 million in the first six months of 2024 compared to the same periods of 2023, primarily due to growth in individual health and group health.
64 www.allstate.com
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.