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Allstate to Report Q2 Earnings: Can Auto Brand Strength Save the Day?
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Key Takeaways
Allstate is projected to report Q2 EPS of $3.36 on $17.16B in revenue, both up strongly year over year.
Auto underwriting income is set to rise to $484.7M, with an improved combined ratio of 94.99%.
Higher expenses and lower Health and Benefits net income may offset gains for ALL.
Insurance provider The Allstate Corporation (ALL - Free Report) is set to report its second-quarter 2025 results on July 30, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.36 per share on revenues of $17.16 billion.
The second-quarter earnings estimate witnessed four upward revisions against one downward movement over the past 60 days. The bottom-line projection indicates a year-over-year jump of 108.7%. Also, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 8.5%.
Image Source: Zacks Investment Research
For 2025, the Zacks Consensus Estimate for Allstate’s revenues is pegged at $69.06 billion, implying a rise of 7.4% year over year. However, the consensus mark for 2025 EPS is pegged at $18.33, implying a year-over-year increase of a penny.
Allstate has a robust history of surpassing earnings estimates, beating the consensus estimate in each of the last four quarters, with the average surprise being 134.9%. This is depicted in the figure below.
However, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.
ALL has an Earnings ESP of -4.91% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate and our model estimate for net premiums earned indicate 9.9% and 7.7% year-over-year growth, respectively. Net investment income is expected to have received an impetus from higher-yielding fixed-income securities. The Zacks Consensus Estimate for net investment income indicates 14.5% year-over-year growth from $712 million.
The Zacks Consensus Estimate for adjusted net income from the Protection Services business indicates 14.7% year-over-year growth. The consensus mark for Homeowners’ policies in force indicates a 2.5% year-over-year increase.
The consensus mark for underwriting income from the Auto brand is pegged at $484.7 million compared with $370 million a year ago. The combined ratio in this line of business is pegged at 94.99%, improving from 95.90% in the year-ago quarter. This means a larger portion of premiums remained in the company’s kitty following claim payments.
The consensus estimate for underwriting loss from Commercial Lines is pegged at $11.5 million, down from $138 million a year ago. However, the consensus mark for adjusted net income from theAllstate Health and Benefits unit indicates a 44.3% year-over-year decrease. Ourmodel estimate for total costs and expenses indicates more than a 6% year-over-year increase due to higher operating costs and claims expenses, partially offsetting the positives.
How Did Peers Perform?
Several insurance companies, including Marsh & McLennan Companies, Inc. (MMC - Free Report) , Aon plc (AON - Free Report) and AMERISAFE, Inc. (AMSF - Free Report) , have already reported their financial results for the June quarter of 2025. Here’s how they had performed:
Marsh & McLennan reported second-quarter 2025 adjusted earnings per share of $2.72, which surpassed the Zacks Consensus Estimate by 2.3%, aided by strong growth in Risk and Insurance Services, particularly from the Marsh and Guy Carpenter businesses. However, the upside was partly offset by Marsh & McLennan’s elevated operating expenses, primarily due to increased compensation and benefits.
AON reported second-quarter adjusted earnings of $3.49 per share, which beat the Zacks Consensus Estimate by 2.7%, benefiting from new business growth and solid retention rates in its solution lines. AON’s Risk Capital and Human Capital segments gained from organic revenue growth, NFP acquisition synergies and net restructuring savings. However, the upside was partially offset by escalating operating costs.
AMERISAFE reported second-quarter adjusted earnings per share of 53 cents, which missed the Zacks Consensus Estimate by 3.6%, affected by a drop in net investment income, softer underwriting results and elevated expense levels. AMERISAFE’s strong retention rates and new business growth partially offset the negatives.
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Allstate to Report Q2 Earnings: Can Auto Brand Strength Save the Day?
Key Takeaways
Insurance provider The Allstate Corporation (ALL - Free Report) is set to report its second-quarter 2025 results on July 30, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.36 per share on revenues of $17.16 billion.
The second-quarter earnings estimate witnessed four upward revisions against one downward movement over the past 60 days. The bottom-line projection indicates a year-over-year jump of 108.7%. Also, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 8.5%.
For 2025, the Zacks Consensus Estimate for Allstate’s revenues is pegged at $69.06 billion, implying a rise of 7.4% year over year. However, the consensus mark for 2025 EPS is pegged at $18.33, implying a year-over-year increase of a penny.
Allstate has a robust history of surpassing earnings estimates, beating the consensus estimate in each of the last four quarters, with the average surprise being 134.9%. This is depicted in the figure below.
The Allstate Corporation Price and EPS Surprise
The Allstate Corporation price-eps-surprise | The Allstate Corporation Quote
Q2 Earnings Whispers for Allstate
However, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.
ALL has an Earnings ESP of -4.91% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping Allstate’s Q2 Results?
The Zacks Consensus Estimate and our model estimate for net premiums earned indicate 9.9% and 7.7% year-over-year growth, respectively. Net investment income is expected to have received an impetus from higher-yielding fixed-income securities. The Zacks Consensus Estimate for net investment income indicates 14.5% year-over-year growth from $712 million.
The Zacks Consensus Estimate for adjusted net income from the Protection Services business indicates 14.7% year-over-year growth. The consensus mark for Homeowners’ policies in force indicates a 2.5% year-over-year increase.
The consensus mark for underwriting income from the Auto brand is pegged at $484.7 million compared with $370 million a year ago. The combined ratio in this line of business is pegged at 94.99%, improving from 95.90% in the year-ago quarter. This means a larger portion of premiums remained in the company’s kitty following claim payments.
The consensus estimate for underwriting loss from Commercial Lines is pegged at $11.5 million, down from $138 million a year ago. However, the consensus mark for adjusted net income from theAllstate Health and Benefits unit indicates a 44.3% year-over-year decrease. Ourmodel estimate for total costs and expenses indicates more than a 6% year-over-year increase due to higher operating costs and claims expenses, partially offsetting the positives.
How Did Peers Perform?
Several insurance companies, including Marsh & McLennan Companies, Inc. (MMC - Free Report) , Aon plc (AON - Free Report) and AMERISAFE, Inc. (AMSF - Free Report) , have already reported their financial results for the June quarter of 2025. Here’s how they had performed:
Marsh & McLennan reported second-quarter 2025 adjusted earnings per share of $2.72, which surpassed the Zacks Consensus Estimate by 2.3%, aided by strong growth in Risk and Insurance Services, particularly from the Marsh and Guy Carpenter businesses. However, the upside was partly offset by Marsh & McLennan’s elevated operating expenses, primarily due to increased compensation and benefits.
AON reported second-quarter adjusted earnings of $3.49 per share, which beat the Zacks Consensus Estimate by 2.7%, benefiting from new business growth and solid retention rates in its solution lines. AON’s Risk Capital and Human Capital segments gained from organic revenue growth, NFP acquisition synergies and net restructuring savings. However, the upside was partially offset by escalating operating costs.
AMERISAFE reported second-quarter adjusted earnings per share of 53 cents, which missed the Zacks Consensus Estimate by 3.6%, affected by a drop in net investment income, softer underwriting results and elevated expense levels. AMERISAFE’s strong retention rates and new business growth partially offset the negatives.