Allstate Reports Third Quarter 2025 Results

Transformative Growth execution results in strong operating results

NORTHBROOK, Ill.–(BUSINESS WIRE)–The Allstate Corporation (NYSE: ALL) today reported financial results for the third quarter of 2025.

“Allstate delivered excellent operating results in the third quarter,” said Tom Wilson, who leads The Allstate Corporation. “Revenues increased to $17.3 billion, a 3.8% increase over the prior year. Policies in force increased to 209.5 million due to continued growth in Protection Plans and increased homeowners and auto insurance policies in force. Net income was $3.7 billion, driven by strong operating performance across the Property-Liability business, modest catastrophe losses, higher investment results and favorable insurance reserve releases. Adjusted net income* was $3.0 billion, or $11.17 per diluted share.”

“The Transformative Growth strategy is increasing Property-Liability market share and expanding protection offerings. Property-Liability market share increased in non-standard auto and homeowners insurance and in the independent agent channel. Total auto insurance policies in force increased by 1.3%, 2.8% for active brands, versus the prior year. The rollout of new property-liability products, increased advertising, broad distribution and expanded retention programs are expected to drive continued growth. Protection Plans continues to grow internationally with policies in force and revenues increasing by 4.2% and 14.8% respectively over the prior year. The Transformative Growth technology platform also supports accelerated deployment of generative and agentic artificial intelligence to lower costs and reimagine customer value. Allstate will continue to create shareholder value by innovating, embracing change and being the best protection provider,” concluded Wilson.

Third Quarter 2025 Results

• Total revenues of $17.3 billion in the third quarter of 2025 were $628 million or 3.8% higher than the prior year quarter.
• Net income applicable to common shareholders was $3.7 billion in the third quarter of 2025, compared to $1.2 billion in the prior year quarter, reflecting strong operating results across the enterprise.
• Adjusted net income* was $3.0 billion, or $11.17 per diluted share, compared to $1.0 billion in the prior year quarter.
• Adjusted net income return on common shareholders equity* was 34.7%.

• Property-Liability earned premiums of $14.5 billion increased 6.1% in the third quarter of 2025 compared to the prior year quarter, primarily driven by higher average premiums and policy in force growth. Underwriting income was $2.9 billion compared to $495 million in the prior year quarter.

• Premiums written increased 6.3% compared to the prior year quarter, reflecting higher auto and homeowners insurance average premiums and policies in force.

• Policies in force increased by 1.2%, led by growth in auto and homeowners insurance policies, partially offset by a 26.9% decline in commercial policies.

• Allstate-branded Affordable, Simple, Connected auto insurance products are now available in 42 states with the homeowners insurance product available in 24 states. Custom360^® middle market standard and preferred auto and homeowners insurance products are available in 34 states for independent agents.

• Property-Liability combined ratio was 80.1 for the quarter, which was an improvement of 16.3 points versus the prior year quarter due to lower catastrophe losses and the benefit of non-catastrophe reserve releases.

• Allstate Protection auto insurance results reflect execution of Transformative Growth, with strong margins and increased new business growth over the prior year.

• Written and earned premiums grew 3.5% compared to the prior year quarter.

• Auto insurance rate increases resulted in an annualized premium impact of 0.6% in the third quarter, reflecting continued moderation in loss cost trends.

• Auto insurance policies in force continue to grow reflecting expanded distribution, increased marketing, new products and sophisticated rating plans. Policies grew by 1.3% as a 23.0% increase in new business was negatively impacted by lower customer retention. Active brand auto insurance polices grew by 2.8%, which was partially offset by decreases in legacy Esurance and Encompass policies.

• The recorded auto insurance combined ratio of 82.0 in the third quarter of 2025 was a 12.8 point improvement from the prior year quarter, reflecting higher average earned premiums, moderating loss costs and the benefit of non-catastrophe reserve releases.

• Prior year non-catastrophe reserve reestimates were $480 million in the third quarter, a 5.0 point benefit to the combined ratio, reflecting favorable severity development in personal auto injury and physical damage coverages.

• The underlying auto insurance combined ratio* of 86.0 in the third quarter of 2025 was a 6.0 point improvement from the prior year quarter, as growth in average earned premiums exceeded improving underlying loss and expense trends per policy. The third quarter underlying auto insurance combined ratio benefited from 2.4 points of favorable development on claims reported in the first and second quarters of 2025.

• Allstate Protection homeowners insurance generated strong returns and remains an attractive growth opportunity. Underwriting profit of $1.1 billion increased from $60 million in the prior year quarter, supported by lower catastrophes and excellent underlying margins.

• Written premiums and earned premiums increased by 13.1% and 14.0% compared to the prior year quarter, respectively, due to higher average premiums and policy in force growth.

• A 12.0% increase in Allstate brand homeowners insurance average gross written premium compared to the prior year quarter reflects continued rate increases and higher home replacement costs.

• Policies in force increased 2.1% compared to the prior year quarter, primarily driven by 3.6% growth in Allstate brand homeowners insurance policies, offset by a reduction in National General legacy products.

• Catastrophe losses of $479 million in the quarter decreased $752 million compared to the prior year quarter due to fewer and less severe events as well as the absence of any hurricanes and tropical storms.

• The recorded homeowners insurance combined ratio of 71.5 was 26.7 points below the third quarter of 2024, due to lower catastrophe losses, higher average earned premiums and favorable non-catastrophe frequency trends.

• The underlying combined ratio* of 59.8 improved by 2.3 points compared to the prior year quarter, primarily driven by higher average premiums and favorable non-catastrophe loss trends.

• Protection Services continues to broaden protection to customers through five businesses that primarily embed Allstate branded offerings in non-insurance purchases. Revenues increased to $902 million in the third quarter of 2025, 9.7% higher than the prior year quarter, primarily due to Protection Plans. Adjusted net income of $46 million decreased by $12 million compared to the prior year quarter reflecting higher expenses at Arity and increased claims at Protection Plans.

• Protection Plans continued to expand distribution relationships and product offerings. Revenue of $588 million increased $76 million, or 14.8%, compared to the prior year quarter primarily due to strong international growth. Adjusted net income of $34 million in the third quarter of 2025 was $5 million lower than the prior year quarter due to increased claims.

• Dealer Services generated revenue of $148 million and adjusted net income of $6 million, an increase of $1 million compared to the prior year quarter.

• Roadside revenue of $59 million in the third quarter of 2025 increased 11.3% compared to the prior year quarter reflecting increased bundling with Allstate branded Affordable, Simple, Connected auto insurance products and higher third-party sales. Adjusted net income of $12 million in the second quarter was $2 million higher than the prior year quarter.

• Arity revenue of $68 million decreased $6 million compared to the prior year quarter due to lower lead generation revenue. Adjusted net loss of $8 million in the third quarter of 2025 compared to $1 million of income in the prior year quarter primarily due to increased operating expenses.

• Identity Protection revenue of $39 million in the third quarter of 2025 increased 5.4% compared to the prior year quarter reflecting growth in the employee benefits channel. Adjusted net income of $2 million in the third quarter of 2025 decreased compared to $3 million in the prior year quarter.

• Allstate Investments uses a proactive approach to balancing risk and return for the $82.3 billion portfolio. Net investment income of $949 million in the third quarter of 2025 increased by $166 million from the prior year quarter due to market-based portfolio growth and higher performance-based income.

• Market-based investment income was $780 million in the third quarter of 2025, an increase of $72 million, or 10.2%, compared to the prior year quarter, reflecting increased asset balances and slightly higher yields in the $72.0 billion market-based portfolio.

• Performance-based investment income totaled $227 million in the third quarter of 2025, an increase of $84 million compared to the prior year quarter primarily due to private equity valuation increases. The overall portfolio allocation to performance-based assets provides a diversifying source of long-term returns; quarterly volatility in reported results is expected.

• Net gains on investments and derivatives were $252 million in the third quarter of 2025, compared to $243 million in the prior year quarter. Net gains in the third quarter of 2025 were driven by valuation increases on equity investments and fixed income sales.

• Unrealized net capital gains totaled $452 million (pre-tax), a $403 million improvement to the prior quarter as lower interest rates resulted in higher fixed income valuations.

• Total return on the investment portfolio was 2.0% for the third quarter and 3.8% for the latest twelve months.

• Macroeconomic impacts are regularly monitored through our integrated Enterprise Risk and Return Management framework. In the third quarter of 2025, growth exposure was increased through higher allocation to public equity securities and fixed income portfolio duration was lengthened.

Proactive Capital Management

“Strong operating performance resulted in an excellent adjusted net income return on equity* of 34.7% for the latest 12 months,” said John Dugenske, Interim Chief Financial Officer and President, Investments and Corporate Strategy. “Allstate’s capital position is also exceptionally strong, reflecting increased income and the sale of the Employer Voluntary Benefits and Group Health businesses earlier in the year. Total estimated statutory surplus in the insurance companies increased to $22.5 billion and $5.5 billion of assets are held at the holding company. Allstate returned $624 million to common shareholders through a combination of $360 million in share repurchases and $264 million in common shareholder dividends in the third quarter. Total cash returned to shareholders was $1.8 billion over the latest twelve months which is 3.5% of the average market value of common equity. Allstate remains focused on deploying capital to profitably grow the business, generate investment returns and create value for shareholders.”

Visit www.allstateinvestors.com for additional information about Allstate’s results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, November 6. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

Forward-Looking Statements

This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.

About Allstate

The Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties with affordable, simple and connected protection for autos, homes, electronic devices, and identities. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online, and at the workplace. Allstate has more than 209 policies in force and is widely known for the slogan “You’re in Good Hands with Allstate.” For more information, visit www.allstate.com.

Contacts

Nick Nottoli

Media Relations

[email protected]

Allister Gobin

Investor Relations

(847) 402-2800

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