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ALL Q1 Earnings Beat Estimates on Strong Underwriting, Lower Expenses
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Key Takeaways
ALL Q1 adjusted EPS of $10.65 beat estimates by 43.3% and jumped 201.7% year over year.
Allstate saw gains from higher P&C premiums, improved investment income, and lower catastrophe losses.
ALL expenses fell 12.1% as claims and catastrophe losses declined, boosting underwriting income sharply.
The Allstate Corporation (ALL - Free Report) reported a first-quarter 2026 adjusted net income of $10.65 per share, which outpaced the Zacks Consensus Estimate by 43.3%. The bottom line surged 201.7% year over year.
Operating revenues of $17.3 billion grew 3.2% year over year. However, the top line missed the consensus mark by 2%.
Allstate’s quarterly results were driven by higher property and casualty insurance premiums, improved net investment income and lower catastrophe losses. Lower expenses and strong underwriting performance further aided results.
The Allstate Corporation Price, Consensus and EPS Surprise
Property and casualty insurance premiums improved 5.8% year over year to $15.6 billion. Net investment income of $938 million advanced 9.8% year over year on the back of a growing market-based portfolio. The metric beat the Zacks Consensus Estimate of $895 million and our estimate of $935 million. Market-based investment income rose 10% year over year to $791 million in the quarter under review.
Total costs and expenses were $13.8 billion, which decreased 12.1% year over year and was lower than our estimate of $15.5 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 Pension and other postretirement remeasurement (gains) losses. Catastrophe losses of $1.2 billion dropped 43.7% year over year.
Allstate’s pretax income increased significantly, up 332.3% year over year to $3.1 billion. As of Dec. 31, 2025, total policies in force were 212 million, up 2.5% year over year.
ALL’s Segmental Performances
The Property-Liability segment reported premiums earned of $14.8 billion in the first quarter, up 5.5% year over year, driven by higher average premiums in homeowners insurance and growth in policies in force. However, the metric missed both the Zacks Consensus Estimate and our estimate of $15.1 billion. Underwriting income in the segment surged 638.3% year over year to $2.7 billion. The underlying combined ratio improved 280 basis points to 80.3%.
The Protection Services segment’s revenues advanced 7.2% year over year to $922 million, aided by Allstate Protection Plans and Roadside businesses. The metric lagged our estimate of $958.9 million. Adjusted net income of $47 million declined 14.5% year over year.
Financial Update (As of March 31, 2026)
Allstate exited the first quarter with a cash balance of $697 million, up from $678 million at 2025-end. Total assets increased to $124 billion from $119.8 billion at the end of 2025.
Debt remained unchanged at $7.5 billion from the 2025-end level.
Total equity increased to $31.6 billion from $30.6 billion at 2025-end.
Book value per common share was $113.52 as of March 31, 2026, up 52.2% year over year.
Of the insurance industry players that have reported first-quarter 2026 results so far, the bottom-line results of W.R. Berkley Corporation (WRB - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) beat the respective Zacks Consensus Estimate.
W.R. Berkley reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year. WRB’s total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. Net premiums written were about $3.2 billion, up 1.3% year over year. The figure, however, beat our estimate as well as the Zacks Consensus Estimate of $3.2 billion.
The Travelers Companies reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Total revenues remained flat from the year-ago quarter at $11.9 billion. TRV’s net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
AXIS Capital reported first-quarter 2026 operating income of $3.42 per share, which outpaced the Zacks Consensus Estimate of $3.23 and rose 7.9% year over year. Total operating revenues of $1.7 billion, which marginally beat the Zacks Consensus Estimate by 0.4%. The top line rose nearly 7.7% year over year on higher premiums earned. AXS’s net premiums written increased 9% to $1.9 billion, driven by a 24% rise in the Insurance segment, partially offset by a 13% decline in the Reinsurance segment. Net investment income decreased 11.1% year over year to $184.7 million, due to lower income from cash.
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ALL Q1 Earnings Beat Estimates on Strong Underwriting, Lower Expenses
Key Takeaways
The Allstate Corporation (ALL - Free Report) reported a first-quarter 2026 adjusted net income of $10.65 per share, which outpaced the Zacks Consensus Estimate by 43.3%. The bottom line surged 201.7% year over year.
Operating revenues of $17.3 billion grew 3.2% year over year. However, the top line missed the consensus mark by 2%.
Allstate’s quarterly results were driven by higher property and casualty insurance premiums, improved net investment income and lower catastrophe losses. Lower expenses and strong underwriting performance further aided results.
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 Q1 Results
Property and casualty insurance premiums improved 5.8% year over year to $15.6 billion. Net investment income of $938 million advanced 9.8% year over year on the back of a growing market-based portfolio. The metric beat the Zacks Consensus Estimate of $895 million and our estimate of $935 million. Market-based investment income rose 10% year over year to $791 million in the quarter under review.
Total costs and expenses were $13.8 billion, which decreased 12.1% year over year and was lower than our estimate of $15.5 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 Pension and other postretirement remeasurement (gains) losses. Catastrophe losses of $1.2 billion dropped 43.7% year over year.
Allstate’s pretax income increased significantly, up 332.3% year over year to $3.1 billion. As of Dec. 31, 2025, total policies in force were 212 million, up 2.5% year over year.
ALL’s Segmental Performances
The Property-Liability segment reported premiums earned of $14.8 billion in the first quarter, up 5.5% year over year, driven by higher average premiums in homeowners insurance and growth in policies in force. However, the metric missed both the Zacks Consensus Estimate and our estimate of $15.1 billion. Underwriting income in the segment surged 638.3% year over year to $2.7 billion. The underlying combined ratio improved 280 basis points to 80.3%.
The Protection Services segment’s revenues advanced 7.2% year over year to $922 million, aided by Allstate Protection Plans and Roadside businesses. The metric lagged our estimate of $958.9 million. Adjusted net income of $47 million declined 14.5% year over year.
Financial Update (As of March 31, 2026)
Allstate exited the first quarter with a cash balance of $697 million, up from $678 million at 2025-end. Total assets increased to $124 billion from $119.8 billion at the end of 2025.
Debt remained unchanged at $7.5 billion from the 2025-end level.
Total equity increased to $31.6 billion from $30.6 billion at 2025-end.
Book value per common share was $113.52 as of March 31, 2026, up 52.2% year over year.
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 first-quarter 2026 results so far, the bottom-line results of W.R. Berkley Corporation (WRB - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) beat the respective Zacks Consensus Estimate.
W.R. Berkley reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year. WRB’s total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. Net premiums written were about $3.2 billion, up 1.3% year over year. The figure, however, beat our estimate as well as the Zacks Consensus Estimate of $3.2 billion.
The Travelers Companies reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Total revenues remained flat from the year-ago quarter at $11.9 billion. TRV’s net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
AXIS Capital reported first-quarter 2026 operating income of $3.42 per share, which outpaced the Zacks Consensus Estimate of $3.23 and rose 7.9% year over year. Total operating revenues of $1.7 billion, which marginally beat the Zacks Consensus Estimate by 0.4%. The top line rose nearly 7.7% year over year on higher premiums earned. AXS’s net premiums written increased 9% to $1.9 billion, driven by a 24% rise in the Insurance segment, partially offset by a 13% decline in the Reinsurance segment. Net investment income decreased 11.1% year over year to $184.7 million, due to lower income from cash.