ALLSTATE CORP
For the period ended Dec 31, 2024. Filed Feb 24, 2025.
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FY2024 · Filed Feb 24, 2025
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Allstate Health and Benefits
2024 Form 10-K Allstate Health and Benefits
Allstate Health and Benefits Segment
Allstate Health and Benefits offers employer voluntary benefits, group health and individual health products, including life, accident, critical illness, hospital indemnity, short-term disability and other health products.
In 2024, Allstate Health and Benefits represented 2.0% of total PIF. Our target customers are small group employers and consumers with family and financial protection needs. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information.
On August 13, 2024, we entered into a share purchase agreement with StanCorp Financial Group, Inc. to sell American Heritage Life Insurance Company and American Heritage Service Company, comprising the Company’s employer voluntary benefits business, reported within this segment. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. For additional information on the disposition, see Note 4.
On January 30, 2025, Allstate entered into an agreement with Nationwide Life Insurance Company to sell Direct General Life Insurance Company, NSM Sales Corporation and The Association Benefits Solution, LLC, comprising the group health business. The transaction is expected to close during 2025, subject to regulatory approvals and other customary closing conditions. The individual health business will either be retained or divested.
| Summarized financial information | |||
|---|---|---|---|
| For the years ended December 31, | |||
| ($ in millions) | 2024 | 2023 | 2022 |
| Revenues | |||
| Accident and health insurance premiums and contract charges | $1,921 | $1,846 | $1,832 |
| Other revenue | 522 | 447 | 402 |
| Net investment income | 100 | 82 | 69 |
| Costs and expenses | |||
| Accident, health and other policy benefits | (1,241) | (1,071) | (1,042) |
| Amortization of DAC | (146) | (150) | (136) |
| Operating costs and expenses | (915) | (842) | (814) |
| Restructuring and related charges | (3) | (7) | (2) |
| Income tax expense on operations | (52) | (63) | (64) |
| Adjusted net income | $186 | $242 | $245 |
| Benefit ratio (1) | 62.8 | 56.2 | 55.1 |
| Employer voluntary benefits (2) | $85 | $100 | $124 |
| Group health (3) | 71 | 95 | 90 |
| Individual health (4) | 30 | $47 | 31 |
| Adjusted net income | $186 | $242 | $245 |
| Policies in force | |||
| Employer voluntary benefits (2) | 3,464 | 3,590 | 3,783 |
| Group health (3) | 140 | 136 | 119 |
| Individual health (4) | 471 | 417 | 394 |
| Policies in force as of December 31 (in thousands) | 4,075 | 4,143 | 4,296 |
(1)Benefit ratio is calculated as accident, health and other policy benefits less interest credited to contractholder funds of $34 million, $33 million, and $33 million for the years ended December 31, 2024, 2023, and 2022, respectively, 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.
Premiums and contract charges increased 4.1% or $75 million in 2024 compared to 2023, primarily due to growth in individual health and group health, partially offset by a decline in employer voluntary benefits.
60 www.allstate.com
2024 Form 10-KAllstate Health and Benefits
| Premiums and contract charges by line of business | |||
|---|---|---|---|
| For the years ended December 31, | |||
| ($ in millions) | 2024 | 2023 | 2022 |
| Employer voluntary benefits | $985 | $1,001 | $1,033 |
| Group health | 481 | 440 | 385 |
| Individual health | 455 | 405 | 414 |
| Premiums and contract charges | $1,921 | $1,846 | $1,832 |
Adjusted net income decreased $56 million in 2024 compared to 2023, primarily due to increased benefit utilization across all lines of business.
New annualized premium sales (annualized premiums at initial employer voluntary benefit customer enrollment or health policy sale) were $732 million in both 2024 and 2023.
Other revenue increased $75 million in 2024 compared to 2023, primarily due to increases in third party commission revenue for the individual health business and administrative fees in the group health business.
Accident, health and other policy benefits increased 15.9% or $170 million in 2024 compared to 2023, primarily due to higher benefit utilization in all
businesses and growth in group health and individual health.
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 11 of the consolidated financial statements.
Benefit ratio increased 6.6 points to 62.8 in 2024 compared to 56.2 in 2023, primarily due to higher claims experience across all lines of business.
Amortization of DACdecreased 2.7% or $4 million in 2024 compared to 2023. For information on changes in DAC, see Note 13 of the consolidated financial statements.
| Operating costs and expenses | ||||
|---|---|---|---|---|
| ($ in millions) | Employer voluntary benefits | Group health | Individualhealth | Total |
| Non-deferrable commissions | $83 | $108 | $155 | $346 |
| Operating costs and expenses | 212 | 174 | 183 | 569 |
| Total | $295 | $282 | $338 | $915 |
| Non-deferrable commissions | $87 | $97 | $135 | $319 |
| Operating costs and expenses | 206 | 159 | 158 | 523 |
| Total | $293 | $256 | $293 | $842 |
| Non-deferrable commissions | $95 | $83 | $143 | $321 |
| Operating costs and expenses | 191 | 133 | 169 | 493 |
| Total | $286 | $216 | $312 | $814 |
Operating costs and expenses increased $73 million in 2024 compared to 2023, primarily due to growth in individual health and group health.
The Allstate Corporation 61
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