ALLSTATE CORP
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
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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.
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Protection Services
Protection Services Segment Results
Protection Services Segment
| Summarized financial information | ||||||
|---|---|---|---|---|---|---|
| ($ in millions) · Three months ended June 30, · Six months ended June 30, | ||||||
| 2024 · 2023 · 2024 · 2023 | ||||||
| Premiums written | $676 | $658 | $1,303 | $1,277 | ||
| Revenues | ||||||
| Premiums | $613 | $549 | $1,225 | $1,087 | ||
| Other revenue | 98 | 84 | 183 | 168 | ||
| Intersegment insurance premiums and service fees (1) | 39 | 35 | 74 | 68 | ||
| Net investment income | 23 | 18 | 44 | 34 | ||
| Costs and expenses | ||||||
| Claims and claims expense | (157) | (153) | (315) | (306) | ||
| Amortization of DAC | (296) | (259) | (585) | (510) | ||
| Operating costs and expenses | (246) | (218) | (480) | (439) | ||
| Restructuring and related charges | — | — | (1) | (1) | ||
| Income tax expense on operations | (19) | (15) | (36) | (26) | ||
| Adjusted net income | $55 | $41 | $109 | $75 | ||
| Allstate Protection Plans | $41 | $31 | $81 | $59 | ||
| Allstate Dealer Services | 6 | 6 | 12 | 13 | ||
| Allstate Roadside | 8 | 6 | 19 | 10 | ||
| Arity | (2) | (3) | (6) | (7) | ||
| Allstate Identity Protection | 2 | 1 | 3 | — | ||
| Adjusted net income | $55 | $41 | $109 | $75 | ||
| Policies in force | ||||||
| Allstate Protection Plans | 151,172 | 138,172 | ||||
| Allstate Dealer Services | 3,733 | 3,825 | ||||
| Allstate Roadside | 604 | 545 | ||||
| Allstate Identity Protection | 2,510 | 3,222 | ||||
| Policies in force as of June 30 (in thousands) | 158,019 | 145,764 | ||||
(1)Primarily related to Arity and Allstate Roadside and are eliminated in our condensed consolidated financial statements.
Adjusted net income increased 34.1% or $14 million in the second quarter of 2024 compared to the second quarter of 2023, primarily due to revenue growth at Allstate Protection Plans. Adjusted net income increased 45.3% or $34 million in the first six months of 2024 compared to the same period of 2023, due to growth at Allstate Protection Plans and improved claim severity and lower expenses at Allstate Roadside.
Premiums written increased 2.7% or $18 million in the second quarter of 2024 and increased 2.0% or $26 million in the first six months of 2024 compared to the same periods of 2023, primarily due to growth at Allstate Protection Plans, partially offset by lower sales at Allstate Dealer Services and Allstate Roadside.
PIF increased 8.4% or 12 million as of June 30, 2024 compared to June 30, 2023 due to growth at Allstate Protection Plans.
Other revenue increased 16.7% or $14 million in the second quarter of 2024 and increased 8.9% or $15 million in the first six months of 2024 compared to the same periods of 2023, primarily due to higher revenue from increased customer advertising at Arity.
Intersegment premiums and service fees increased 11.4% or $4 million in the second quarter of 2024 and increased 8.8% or $6 million in the first six months of 2024 compared to the same periods of 2023, driven by increased software revenue at Arity.
Second Quarter 2024 Form 10-Q 61
Segment Results Protection Services
Claims and claims expense increased 2.6% or $4 million in the second quarter 2024 and increased 2.9% or $9 million in the first six months of 2024 compared to the same periods of 2023, primarily driven by growth at Allstate Protection Plans, partially offset by lower claim severity at Allstate Roadside.
Amortization of DAC increased 14.3% or $37 million in the second quarter of 2024 and increased 14.7% or $75 million in the first six months of 2024 compared to the same periods of 2023, driven by growth at Allstate Protection Plans.
Operating costs and expenses increased 12.8% or $28 million in the second quarter of 2024 and increased 9.3% or $41 million in the first six months of 2024 compared to the same periods of 2023, primarily due to growth at Allstate Protection Plans and Arity, partially offset by lower expenses at Allstate Roadside.
62 www.allstate.com
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