We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Property-Liability Underwriting Woes Hurt Allstate's Q3 Results?
Read MoreHide Full Article
Key Takeaways
Allstate's Q3 EPS is projected at $7.03, down 37.1% year over year, despite a 4.9% expected revenue growth.
Property-Liability underwriting income may plunge 55.7%, with the combined ratio deteriorating to 91.4%.
Net premiums earned may rise 5.6%, but operating costs are estimated to grow more than 7% year over year.
Insurance provider The Allstate Corporation (ALL - Free Report) is set to report its third-quarter 2026 results on Nov. 4, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $7.03 per shareon revenues of $17.84 billion.
The third-quarter earnings estimate witnessed four upward revisions and four downward revisions over the past 60 days. However, the bottom-line projection indicates a year-over-year decline of 37.1%. Nevertheless, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 4.9%.
Image Source: Zacks Investment Research
For 2026, the Zacks Consensus Estimate for Allstate’s revenues is pegged at $71.04 billion, implying a rise of 4.7% year over year. The consensus mark for 2026 EPS is pegged at $36.21, implying a year-over-year increase of 4%.
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 45.3%. This is depicted in the figure below.
Our proven model predicts a likely earnings beat for the company this time around as well. 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 precisely the case here.
ALL has an Earnings ESP of +5.25% 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 for net premiums earned indicates 5.6% year-over-year growth in the third quarter. Net investment income is expected to have received support from a growing market- and performance-based portfolio. The Zacks Consensus Estimate for net investment income indicates around 2% year-over-year growth from $949 million. These are likely to have supported its top-line growth.
The Zacks Consensus Estimate for adjusted net income from the Protection Services business indicates a 29% year-over-year gain. However, rising expenses are expected to have partially offset the positives. Ourmodel estimate for operating costs and expenses indicates a more than 7% year-over-year increase.
The consensus mark for underwriting income from Property-Liability indicates a 55.7% year-over-year plunge. The combined ratio for Property-Liability is pegged at 91.4%, deteriorating from 80.1% a year ago. This means a lower portion of premiums remained with the company following claim payments.
The consensus mark for underwriting income from the Auto brand is pegged at $1.1 billion for the third quarter, compared with $1.7 billion a year ago. The combined ratio in this line of business is pegged at 88.6%, deteriorating from 82% in the year-ago quarter.
How Did Other Insurers Fare This Quarter?
Several insurance companies, including Marsh & McLennan Companies, Inc. (MRSH - Free Report) , The Hartford Insurance Group, Inc. (HIG - Free Report) and RenaissanceRe Holdings Ltd. (RNR - Free Report) , have already reported their financial results for the September quarter of 2026. Here’s how they performed:
Marsh reported third-quarter 2026 adjusted earnings per share of $2.03, which surpassed the Zacks Consensus Estimate by 3.6% and advanced 9.7% year over year. The results benefited from solid revenue growth across Risk and Insurance Services and Consulting. However, Marsh’s higher operating expenses partially offset the positives.
Hartford Insurance delivered third-quarter 2026 core earnings per share of $3.50, beating the Zacks Consensus Estimate by 11.1%. However, the bottom line declined 2.5% year over year. The results benefited from HIG’s higher investment income and premium growth in Business Insurance. However, higher catastrophe losses and weaker Employee Benefits profitability partly offset the upside.
RenaissanceRe reported third-quarter 2026 operating income of $12.71 per share, which surpassed the Zacks Consensus Estimate by 12.9%. Yet, the bottom line fell from $15.62 per share a year ago. The quarterly earnings benefited from lower operational expenses and higher net investment income. However, the upside was partly offset by lower net premiums earned, weaker underwriting results in RNR’s Casualty & Specialty segment and lower fee income.
View the Zacks #1 Rank List
Image: Bigstock
Will Property-Liability Underwriting Woes Hurt Allstate's Q3 Results?
Key Takeaways
Insurance provider The Allstate Corporation (ALL - Free Report) is set to report its third-quarter 2026 results on Nov. 4, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $7.03 per shareon revenues of $17.84 billion.
The third-quarter earnings estimate witnessed four upward revisions and four downward revisions over the past 60 days. However, the bottom-line projection indicates a year-over-year decline of 37.1%. Nevertheless, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 4.9%.
For 2026, the Zacks Consensus Estimate for Allstate’s revenues is pegged at $71.04 billion, implying a rise of 4.7% year over year. The consensus mark for 2026 EPS is pegged at $36.21, implying a year-over-year increase of 4%.
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 45.3%. This is depicted in the figure below.
Allstate Price and EPS Surprise
The Allstate Corporation price-eps-surprise | The Allstate Corporation Quote
Q3 Earnings Whispers for Allstate
Our proven model predicts a likely earnings beat for the company this time around as well. 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 precisely the case here.
ALL has an Earnings ESP of +5.25% 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 Q3 Results?
The Zacks Consensus Estimate for net premiums earned indicates 5.6% year-over-year growth in the third quarter. Net investment income is expected to have received support from a growing market- and performance-based portfolio. The Zacks Consensus Estimate for net investment income indicates around 2% year-over-year growth from $949 million. These are likely to have supported its top-line growth.
The Zacks Consensus Estimate for adjusted net income from the Protection Services business indicates a 29% year-over-year gain. However, rising expenses are expected to have partially offset the positives. Ourmodel estimate for operating costs and expenses indicates a more than 7% year-over-year increase.
The consensus mark for underwriting income from Property-Liability indicates a 55.7% year-over-year plunge. The combined ratio for Property-Liability is pegged at 91.4%, deteriorating from 80.1% a year ago. This means a lower portion of premiums remained with the company following claim payments.
The consensus mark for underwriting income from the Auto brand is pegged at $1.1 billion for the third quarter, compared with $1.7 billion a year ago. The combined ratio in this line of business is pegged at 88.6%, deteriorating from 82% in the year-ago quarter.
How Did Other Insurers Fare This Quarter?
Several insurance companies, including Marsh & McLennan Companies, Inc. (MRSH - Free Report) , The Hartford Insurance Group, Inc. (HIG - Free Report) and RenaissanceRe Holdings Ltd. (RNR - Free Report) , have already reported their financial results for the September quarter of 2026. Here’s how they performed:
Marsh reported third-quarter 2026 adjusted earnings per share of $2.03, which surpassed the Zacks Consensus Estimate by 3.6% and advanced 9.7% year over year. The results benefited from solid revenue growth across Risk and Insurance Services and Consulting. However, Marsh’s higher operating expenses partially offset the positives.
Hartford Insurance delivered third-quarter 2026 core earnings per share of $3.50, beating the Zacks Consensus Estimate by 11.1%. However, the bottom line declined 2.5% year over year. The results benefited from HIG’s higher investment income and premium growth in Business Insurance. However, higher catastrophe losses and weaker Employee Benefits profitability partly offset the upside.
RenaissanceRe reported third-quarter 2026 operating income of $12.71 per share, which surpassed the Zacks Consensus Estimate by 12.9%. Yet, the bottom line fell from $15.62 per share a year ago. The quarterly earnings benefited from lower operational expenses and higher net investment income. However, the upside was partly offset by lower net premiums earned, weaker underwriting results in RNR’s Casualty & Specialty segment and lower fee income.