Allstate Corporation (The)

Good day and thank you for standing by. Welcome to Allstate's third quarter investor call. At this time, all participants are in listen-only mode. After the prepared remarks, there will be a question and answer session. To ask a question during this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. Please limit your inquiry to one question and one follow-up. As a reminder, please be aware this call is being recorded. And now I'd like to introduce your host for today's program, Alistair Gobbin, Head of Investor Relations. Please go ahead, sir.

Thank you, Jonathan. Good morning. Welcome to Allstate's third quarter 2024 earnings conference call. Yesterday, following the close of the market, we issued our news release and investor supplement, filed our 10-Q, and posted related material on our website at allstateinvestors.com. Our management team will provide perspective on our strategy and update on results. After prepared remarks, we will have a question and answer session. As noted on the first slide of the presentation, our discussion will contain non-GAAP measures for which the reconciliations in the news release and investor supplement and forward-looking statements about all states' operations. All state's results may differ materially from these statements, so please refer to our 10-K for 2023 and other public documents for information on potential risk. And now I'll turn it over to Tati.

Good morning. We appreciate you investing your time in understanding the value creation potential at Allstate. I'm going to provide an overview of results. Mario and Jess will walk through the operating performance, and then we'll address your questions. So let's begin on slide two. Allstate's strategy has two components, increased personal property liability market share, and expanded protection provided to customers, which are shown in the two ovals on the left. We now have more than 200 million policies in force. On the right-hand side, you can see Allstate's performance for the third quarter. Total revenues of $16.6 billion were up 14.7% compared to the prior year quarter. Allstate generated net income of $1.2 billion and adjusted net income of $3.91 per share. Return on equity was 26.1% over the last 12 months. The property liability business is now positioned for growth. Execution of the auto profit improvement plan has restored auto margins. Near-term auto insurance policy growth will require us to improve customer retention and increase new business levels, both of which Mario will discuss. The homeowner's business had good returns and is growing. The transformative growth initiatives to build a low-cost digital insurer with affordable, simple, and connected protection will ensure that this growth is sustainable. Proactive investing also benefited income as a decision to lengthen duration at the right time increased portfolio yields. In addition, higher insurance prices and increased reserve levels create a much larger investment portfolio, which also raises income. Protection plans continues to profitably grow, and we recently did a small acquisition to expand mobile device protection capabilities. Let's move to slide three. Here you can see the operational execution generated excellent financial results. Revenues increased to $16.6 billion, as you can see on the upper left. Property liability earned premiums were up 11.6%. Net investment income for the quarter was $783 million. That's 13.6% higher than the prior year quarter. Net income was $1.16 billion. Adjusted net income, as I mentioned, was $3.91 per share. And then you can see on the lower right that the return on equity was 26.1%. This shows that Allstate's operational excellence enabled us to dramatically improve results from last year. Now let's hear from Mario on property liability results.