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Why Is Allstate (ALL) Up 4.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Allstate (ALL - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Allstate due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for The Allstate Corporation before we dive into how investors and analysts have reacted as of late.
Allstate Q3 Earnings Beat Estimates on Rising Investment Income
Allstate reported a third-quarter 2025 adjusted net income of $11.17 per share, which beat the Zacks Consensus Estimate by 36.2%. The bottom line rose significantly from $3.91 a year ago.
Operating revenues advanced 3.8% year over year to $17 billion but missed the consensus mark by 2%.
The better-than-expected third-quarter earnings benefited from growth in premiums, improved investment income and decreased costs and expenses. However, the upside was partly offset by the declining adjusted net income from the protection services unit.
Key Takeaways From Allstate’s Q3 Results
Property and casualty insurance premiums increased 6.4% year over year to $15.3 billion. Net investment income was $949 million, which rose 21.2% year over year, backed by a growing market-based portfolio and improved performance-based income. The metric beat the Zacks Consensus Estimate of $832 million. Market-based investment income increased 10.2% year over year to $780 million in the quarter under review.
Total costs and expenses declined 13.5% year over year to $13.2 billion, lower than our estimate of $15.2 billion. The year-over-year decline was due to decreased property and casualty insurance claims and claims expenses, as well as accident, health and other policy benefits. Catastrophe losses decreased to $558 million from $1.7 billion a year ago.
Allstate’s pretax income was $4.8 billion in the third quarter, significantly up from the year-ago figure of $1.4 billion.
As of Sept. 30, 2025, total policies in force were 209.5 million, which grew 3.8% year over year.
ALL’s Segmental Performances
The Property-Liability segment’s premiums earned advanced 6.1% year over year to $14.5 billion, attributable to higher average premiums from auto and homeowners insurance and policies in force. Yet, the metric fell short of the Zacks Consensus Estimate by 1.5%. Underwriting income in the unit amounted to $2.9 billion compared to the prior-year quarter’s figure of $495 million. The underlying combined ratio improved 450 basis points year over year to 78.7%.
The Protection Services segment recorded revenues of $902 million, which advanced 9.7% year over year, aided by Allstate Protection Plans and Roadside businesses. Adjusted net income decreased to $46 million from $58 million a year ago.
Financial Update (As of Sept. 30, 2025)
Allstate exited the third quarter with a cash balance of $931 million, which rose from the 2024-end level of $704 million. Total assets of $120.4 billion increased from $111.6 billion at 2024-end.
Debt amounted to $8.1 billion, stable from the 2024-end figure.
Total equity of $27.5 billion advanced from the 2024-end level of $21.4 billion.
Book value per common share was $95.95 as of Sept. 30, 2025, which climbed 36.4% year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 12.31% due to these changes.
VGM Scores
At this time, Allstate has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Allstate has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Allstate is part of the Zacks Insurance - Property and Casualty industry. Over the past month, The Hartford Insurance Group (HIG - Free Report) , a stock from the same industry, has gained 3.1%. The company reported its results for the quarter ended September 2025 more than a month ago.
The Hartford Insurance Group reported revenues of $5.11 billion in the last reported quarter, representing a year-over-year change of +9.5%. EPS of $3.78 for the same period compares with $2.53 a year ago.
For the current quarter, The Hartford Insurance Group is expected to post earnings of $3.08 per share, indicating a change of +4.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for The Hartford Insurance Group. Also, the stock has a VGM Score of A.
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Why Is Allstate (ALL) Up 4.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Allstate (ALL - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Allstate due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for The Allstate Corporation before we dive into how investors and analysts have reacted as of late.
Allstate Q3 Earnings Beat Estimates on Rising Investment Income
Allstate reported a third-quarter 2025 adjusted net income of $11.17 per share, which beat the Zacks Consensus Estimate by 36.2%. The bottom line rose significantly from $3.91 a year ago.
Operating revenues advanced 3.8% year over year to $17 billion but missed the consensus mark by 2%.
The better-than-expected third-quarter earnings benefited from growth in premiums, improved investment income and decreased costs and expenses. However, the upside was partly offset by the declining adjusted net income from the protection services unit.
Key Takeaways From Allstate’s Q3 Results
Property and casualty insurance premiums increased 6.4% year over year to $15.3 billion. Net investment income was $949 million, which rose 21.2% year over year, backed by a growing market-based portfolio and improved performance-based income. The metric beat the Zacks Consensus Estimate of $832 million. Market-based investment income increased 10.2% year over year to $780 million in the quarter under review.
Total costs and expenses declined 13.5% year over year to $13.2 billion, lower than our estimate of $15.2 billion. The year-over-year decline was due to decreased property and casualty insurance claims and claims expenses, as well as accident, health and other policy benefits. Catastrophe losses decreased to $558 million from $1.7 billion a year ago.
Allstate’s pretax income was $4.8 billion in the third quarter, significantly up from the year-ago figure of $1.4 billion.
As of Sept. 30, 2025, total policies in force were 209.5 million, which grew 3.8% year over year.
ALL’s Segmental Performances
The Property-Liability segment’s premiums earned advanced 6.1% year over year to $14.5 billion, attributable to higher average premiums from auto and homeowners insurance and policies in force. Yet, the metric fell short of the Zacks Consensus Estimate by 1.5%. Underwriting income in the unit amounted to $2.9 billion compared to the prior-year quarter’s figure of $495 million. The underlying combined ratio improved 450 basis points year over year to 78.7%.
The Protection Services segment recorded revenues of $902 million, which advanced 9.7% year over year, aided by Allstate Protection Plans and Roadside businesses. Adjusted net income decreased to $46 million from $58 million a year ago.
Financial Update (As of Sept. 30, 2025)
Allstate exited the third quarter with a cash balance of $931 million, which rose from the 2024-end level of $704 million. Total assets of $120.4 billion increased from $111.6 billion at 2024-end.
Debt amounted to $8.1 billion, stable from the 2024-end figure.
Total equity of $27.5 billion advanced from the 2024-end level of $21.4 billion.
Book value per common share was $95.95 as of Sept. 30, 2025, which climbed 36.4% year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 12.31% due to these changes.
VGM Scores
At this time, Allstate has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Allstate has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Allstate is part of the Zacks Insurance - Property and Casualty industry. Over the past month, The Hartford Insurance Group (HIG - Free Report) , a stock from the same industry, has gained 3.1%. The company reported its results for the quarter ended September 2025 more than a month ago.
The Hartford Insurance Group reported revenues of $5.11 billion in the last reported quarter, representing a year-over-year change of +9.5%. EPS of $3.78 for the same period compares with $2.53 a year ago.
For the current quarter, The Hartford Insurance Group is expected to post earnings of $3.08 per share, indicating a change of +4.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for The Hartford Insurance Group. Also, the stock has a VGM Score of A.