Allstate Cites Customer Value and Pricing as Key to Results
Allstate said it “had a terrific year by better serving customers and making protection more affordable,” according to Tom Wilson, who leads the company. He said Allstate “proactively reduced premiums for 7.8 million auto and homeowners’ insurance customers by an average of 17% through tailored coverage reviews to offset cost inflation,” and “improved 69 million customer interactions” while providing “nearly $38 billion in support and financial resources when the unexpected happened in 2025.”
Consolidated financial results
For the fourth quarter of 2025, Allstate reported:
- Total revenues: $17.3 billion, up $839 million (5.1%) from the prior-year quarter.
- Net income applicable to common shareholders: $3.8 billion, up from $1.9 billion a year earlier.
- Adjusted net income: $3.8 billion, or $14.31 per diluted share, compared with $2.1 billion in the prior-year quarter.
For full-year 2025, the company reported:
- Total revenues: $67.7 billion, up 5.6% from 2024.
- Net income applicable to common shareholders: $10.2 billion, compared with $4.6 billion in 2024.
- Adjusted net income: $9.3 billion, producing an adjusted net income return on equity of 38.3%.
Allstate also reported total policies in force of 210.9 million in the fourth quarter, up 3.0% from the prior year (excluding policies tied to employer voluntary benefits and group health businesses sold). Book value per common share was $108.45, up from $72.35.
Property-Liability performance: premiums up, combined ratio improved
Allstate’s Property-Liability segment—most relevant for P&C readers—showed a sharp improvement in underwriting results.
Fourth quarter 2025 Property-Liability:
- Earned premiums: $14.8 billion, up 6.1% year over year, primarily driven by higher average premiums and policy in force growth.
- Underwriting income: $4.0 billion, up from $1.8 billion in Q4-2024.
- Recorded combined ratio: 72.9, an improvement of 14.0 points versus the prior-year quarter.
- Underlying combined ratio: 76.6 (improved 6.4 points).
- Policies in force increased by 2.0%, led by growth in auto and homeowners insurance policies.
- Catastrophe losses: $209 million, down from $410 million.
Allstate attributed the combined-ratio improvement to higher average earned premiums, non-catastrophe reserve releases, and lower catastrophe losses.
Auto and homeowners: notable quarter-over-quarter improvements
Allstate Protection Auto (Q4 2025):
- Recorded combined ratio: 80.8, improving 12.7 points from Q4 2024.
- Underwriting income: $1.85 billion, up from $603 million.
- Policies in force: 25.5 million, up 2.3%; the company cited a 22.8% increase in new business.
Allstate said prior-year non-catastrophe reserve reestimates were $719 million in the quarter, a 7.5-point benefit to the auto combined ratio.
Allstate Protection Homeowners (Q4 2025):
- Recorded combined ratio: 55.3, improving 14.5 points from Q4-2024.
- Underwriting income: $1.81 billion, up from $1.07 billion.
- Catastrophe losses: $170 million, down from $315 million, which Allstate attributed to fewer and less severe events and “the absence of any hurricanes and tropical storms.”
- Policies in force: 7.70 million, up 2.5%.
Capital actions
Wilson said the company’s board approved a dividend increase to $1.08 per-share to be paid in the second quarter and that Allstate plans to initiate a $4.0 billion share repurchase program after completing its existing $1.5 billion authorization.
