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Allstate Q4 Earnings Beat Estimates on Property-Liability Unit Strength
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Key Takeaways
ALL posted Q4 adjusted EPS of $14.31, beating consensus by 45.7% as operating income surged YoY.
Allstate benefited from higher P&C premiums, improved investment income and a drop in catastrophe losses.
ALL's Property-Liability unit saw underwriting income more than double as the combined ratio improved.
The Allstate Corporation (ALL - Free Report) reported a fourth-quarter 2025 adjusted net income of $14.31 per share, which outpaced the Zacks Consensus Estimate by 45.7%. The bottom line surged 86.6% year over year.
Operating revenues of $17.3 billion grew 3.4% year over year. However, the top line missed the consensus mark by 1.4%.
Allstate’s quarterly results benefited from higher property and casualty insurance premiums, improved net investment income and significantly lower catastrophe losses. A lower expense level and strong underwriting performance also contributed to the upside.
The Allstate Corporation Price, Consensus and EPS Surprise
Property and casualty insurance premiums improved 6.3% year over year to $15.5 billion. Net investment income of $892 million advanced 7.1% year over year on the back of a growing market-based portfolio. The metric beat the Zacks Consensus Estimate of $875 million and our estimate of $883 million. Market-based investment income rose 10.6% year over year to $804 million in the quarter under review.
Total costs and expenses came in at $12.4 billion, which decreased 11.6% year over year and came 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, accident, health and other policy benefits, and operating costs and expenses. Catastrophe losses of $209 million dropped 49% year over year.
Allstate’s pretax income doubled year over year to $4.9 billion.
As of Dec. 31, 2025, total policies in force were 210.9 million, up 3% year over year.
ALL’s Segmental Performances
The Property-Liability segment recorded premiums earned of $14.8 billion in the fourth quarter, which rose 6.1% year over year, attributable to increased auto and homeowners insurance average premiums and policies in force. However, the metric fell short of the Zacks Consensus Estimate of $14.9 billion and our estimate of $15 billion. Underwriting income in the unit more than doubled year over year to $4 billion. The underlying combined ratio of 76.6% improved 640 basis points year over year.
The Protection Services segment’s revenues advanced 3.1% year over year to $917 million, aided by Allstate Protection Plans and Roadside businesses. However, the metric lagged our estimate of $1 billion. Adjusted net income of $57 million improved 14% year over year.
Financial Update (As of Dec. 31, 2025)
Allstate exited the fourth quarter with a cash balance of $678 million, which fell 3.7% from the 2024-end level. Total assets of $119.8 billion increased 7.3% from the figure at 2024-end.
Debt amounted to $7.5 billion, down 7.4% from the figure as of Dec. 31, 2024.
Total equity of $30.6 billion climbed 43.2% from the 2024-end level.
Book value per common share was $108.45 as of Dec. 31, 2025, up 49.9% year over year.
Capital Deployment Update
In 2025, Allstate rewarded more than $2.2 billion to shareholders via share buybacks and dividend payments. Management authorized a new share repurchase program of $4 billion, which will begin once the current $1.5 billion program is fully completed. This new program will be carried out over a 24-month period.
A quarterly dividend hike of 8% was also sanctioned. The increased dividend, amounting to $1.08 per share, will be paid out on April 1, 2026, to shareholders of record as of March 2, 2026.
ALL’s 2025 Figures
Allstate’s 2025 revenues of $67.7 billion rose 5.6% year over year. Full-year adjusted net income of $34.83 per share soared 90.1% year over year. Premiums earned in the Property-Liability unit advanced 7.1% year over year to $57.7 billion.
Of the insurance industry players that have reported fourth-quarter 2025 results so far, the bottom-line results of The Hartford Insurance Group, Inc. (HIG - Free Report) , AXIS Capital Holdings Limited (AXS - Free Report) and Selective Insurance Group, Inc. (SIGI - Free Report) beat the respective Zacks Consensus Estimate.
Hartford Insurance reported fourth-quarter 2025 adjusted operating earnings of $4.06 per share, which surpassed the Zacks Consensus Estimate by 27.9%. The bottom line climbed 38% year over year. HIG's operating revenues rose 8.9% year over year to $5.2 billion. The top line beat the consensus mark by 1.4%. Earned premiums amounted to $6.1 billion, which advanced 5.7% year over year. Net investment income increased 16.5% year over year to $832 million. Pre-tax income climbed 31.6% year over year to $1.4 billion.
Revenues in the Business Insurance segment totaled $4.1 billion, reflecting a 9.5% jump, and beat the Zacks Consensus Estimate by 1.4%. Core earnings of $915 million improved 37.6% year over year. The combined ratio improved 380 basis points year over year to 83.6%. In the Personal Insurance unit, revenues amounted to $1 billion, which beat the consensus estimate by 2.7%. This segment generated core earnings of $214 million, reflecting an increase of approximately 38% year over year.
AXIS Capital reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year. Total operating revenues of $1.7 billion beat the consensus estimate by 5.2%. The top line rose nearly 9% year over year.
Net premiums written rose 13% to $1.4 billion, with an increase of 14% in the Insurance segment and growth of 5% in the Reinsurance segment. Net investment income decreased 4.5% year over year to $187 million. AXIS Capital’s underwriting income of $184 million increased 42% year over year. The combined ratio improved to 90.4 in the quarter from 94.2 a year ago.
Selective Insurance reported fourth-quarter 2025 operating income of $2.57 per share, which marginally beat the Zacks Consensus Estimate by 0.3%. The bottom line increased 59% year over year. Total revenues of $1.4 billion increased 8.3% from the year-ago quarter’s level. The top line marginally exceeded the Zacks Consensus Estimate by 0.1%. On a year-over-year basis, net premiums written (NPW) increased 4% to $1.1 billion. Net investment income increased 17% year over year to $114 million.
Underwriting income of $76 million more than quadrupled year over year. The combined ratio improved 470 basis points year over year to 93.8 from 98.5. Standard Commercial Lines’ NPW was up 5% year over year to $875.6 million. The combined ratio improved significantly to 92.9 from 100.2 a year ago, reflecting a 730-basis-point improvement. Standard Personal Lines’ NPW declined 8% year over year to $95.5 million. Policy count fell. The combined ratio was 103, worsening 1,130 basis points from 91.7 a year ago. Excess & Surplus Lines’ NPW increased 4% year over year to $158.4 million.
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Allstate Q4 Earnings Beat Estimates on Property-Liability Unit Strength
Key Takeaways
The Allstate Corporation (ALL - Free Report) reported a fourth-quarter 2025 adjusted net income of $14.31 per share, which outpaced the Zacks Consensus Estimate by 45.7%. The bottom line surged 86.6% year over year.
Operating revenues of $17.3 billion grew 3.4% year over year. However, the top line missed the consensus mark by 1.4%.
Allstate’s quarterly results benefited from higher property and casualty insurance premiums, improved net investment income and significantly lower catastrophe losses. A lower expense level and strong underwriting performance also contributed to the upside.
The Allstate Corporation Price, Consensus and EPS Surprise
The Allstate Corporation price-consensus-eps-surprise-chart | The Allstate Corporation Quote
Key Takeaways From Allstate’s Q4 Results
Property and casualty insurance premiums improved 6.3% year over year to $15.5 billion. Net investment income of $892 million advanced 7.1% year over year on the back of a growing market-based portfolio. The metric beat the Zacks Consensus Estimate of $875 million and our estimate of $883 million. Market-based investment income rose 10.6% year over year to $804 million in the quarter under review.
Total costs and expenses came in at $12.4 billion, which decreased 11.6% year over year and came 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, accident, health and other policy benefits, and operating costs and expenses. Catastrophe losses of $209 million dropped 49% year over year.
Allstate’s pretax income doubled year over year to $4.9 billion.
As of Dec. 31, 2025, total policies in force were 210.9 million, up 3% year over year.
ALL’s Segmental Performances
The Property-Liability segment recorded premiums earned of $14.8 billion in the fourth quarter, which rose 6.1% year over year, attributable to increased auto and homeowners insurance average premiums and policies in force. However, the metric fell short of the Zacks Consensus Estimate of $14.9 billion and our estimate of $15 billion. Underwriting income in the unit more than doubled year over year to $4 billion. The underlying combined ratio of 76.6% improved 640 basis points year over year.
The Protection Services segment’s revenues advanced 3.1% year over year to $917 million, aided by Allstate Protection Plans and Roadside businesses. However, the metric lagged our estimate of $1 billion. Adjusted net income of $57 million improved 14% year over year.
Financial Update (As of Dec. 31, 2025)
Allstate exited the fourth quarter with a cash balance of $678 million, which fell 3.7% from the 2024-end level. Total assets of $119.8 billion increased 7.3% from the figure at 2024-end.
Debt amounted to $7.5 billion, down 7.4% from the figure as of Dec. 31, 2024.
Total equity of $30.6 billion climbed 43.2% from the 2024-end level.
Book value per common share was $108.45 as of Dec. 31, 2025, up 49.9% year over year.
Capital Deployment Update
In 2025, Allstate rewarded more than $2.2 billion to shareholders via share buybacks and dividend payments. Management authorized a new share repurchase program of $4 billion, which will begin once the current $1.5 billion program is fully completed. This new program will be carried out over a 24-month period.
A quarterly dividend hike of 8% was also sanctioned. The increased dividend, amounting to $1.08 per share, will be paid out on April 1, 2026, to shareholders of record as of March 2, 2026.
ALL’s 2025 Figures
Allstate’s 2025 revenues of $67.7 billion rose 5.6% year over year. Full-year adjusted net income of $34.83 per share soared 90.1% year over year. Premiums earned in the Property-Liability unit advanced 7.1% year over year to $57.7 billion.
ALL’s Zacks Rank
Allstate currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Of the insurance industry players that have reported fourth-quarter 2025 results so far, the bottom-line results of The Hartford Insurance Group, Inc. (HIG - Free Report) , AXIS Capital Holdings Limited (AXS - Free Report) and Selective Insurance Group, Inc. (SIGI - Free Report) beat the respective Zacks Consensus Estimate.
Hartford Insurance reported fourth-quarter 2025 adjusted operating earnings of $4.06 per share, which surpassed the Zacks Consensus Estimate by 27.9%. The bottom line climbed 38% year over year. HIG's operating revenues rose 8.9% year over year to $5.2 billion. The top line beat the consensus mark by 1.4%. Earned premiums amounted to $6.1 billion, which advanced 5.7% year over year. Net investment income increased 16.5% year over year to $832 million. Pre-tax income climbed 31.6% year over year to $1.4 billion.
Revenues in the Business Insurance segment totaled $4.1 billion, reflecting a 9.5% jump, and beat the Zacks Consensus Estimate by 1.4%. Core earnings of $915 million improved 37.6% year over year. The combined ratio improved 380 basis points year over year to 83.6%. In the Personal Insurance unit, revenues amounted to $1 billion, which beat the consensus estimate by 2.7%. This segment generated core earnings of $214 million, reflecting an increase of approximately 38% year over year.
AXIS Capital reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year. Total operating revenues of $1.7 billion beat the consensus estimate by 5.2%. The top line rose nearly 9% year over year.
Net premiums written rose 13% to $1.4 billion, with an increase of 14% in the Insurance segment and growth of 5% in the Reinsurance segment. Net investment income decreased 4.5% year over year to $187 million. AXIS Capital’s underwriting income of $184 million increased 42% year over year. The combined ratio improved to 90.4 in the quarter from 94.2 a year ago.
Selective Insurance reported fourth-quarter 2025 operating income of $2.57 per share, which marginally beat the Zacks Consensus Estimate by 0.3%. The bottom line increased 59% year over year. Total revenues of $1.4 billion increased 8.3% from the year-ago quarter’s level. The top line marginally exceeded the Zacks Consensus Estimate by 0.1%. On a year-over-year basis, net premiums written (NPW) increased 4% to $1.1 billion. Net investment income increased 17% year over year to $114 million.
Underwriting income of $76 million more than quadrupled year over year. The combined ratio improved 470 basis points year over year to 93.8 from 98.5. Standard Commercial Lines’ NPW was up 5% year over year to $875.6 million. The combined ratio improved significantly to 92.9 from 100.2 a year ago, reflecting a 730-basis-point improvement. Standard Personal Lines’ NPW declined 8% year over year to $95.5 million. Policy count fell. The combined ratio was 103, worsening 1,130 basis points from 91.7 a year ago. Excess & Surplus Lines’ NPW increased 4% year over year to $158.4 million.