The Allstate Corporation (ALL Quick QuoteALL - Free Report) reported third-quarter 2026 adjusted net income of $9.76 per share, which beat the Zacks Consensus Estimate by 38.8%. However, the bottom line declined 12.6% year over year. 

Operating revenues of $17.9 billion increased 5.2% year over year and surpassed the consensus mark by 0.3%.

The quarterly results benefited from higher property and casualty insurance premiums, robust investment income and growth in Protection Services. However, increased catastrophe losses and lower underwriting income weighed on profitability.

The Allstate Corporation Price, Consensus and EPS Surprise

The Allstate Corporation price-consensus-eps-surprise-chart | The Allstate Corporation Quote

Key Takeaways From ALL's Q3 Results

Property-Liability earned premiums grew 3.8% year over year.

Property and casualty insurance premiums increased 4% year over year to $15.9 billion. Net investment income of $1.2 billion advanced 24% year over year, driven by higher market-based and performance-based investment income. The metric beat the Zacks Consensus Estimate of $966 million and our estimate of $1 billion. 

Market-based investment income rose 13.7% to $887 million, while performance-based investment income surged 56.4% to $355 million.

Total costs and expenses increased 12% year over year to $14.7 billion, primarily due to higher property and casualty insurance claims and claims expenses, amortization of deferred policy acquisition costs and operating expenses. Catastrophe losses surged 195.7% year over year to $1.7 billion.

Allstate's pretax income declined 45.7% year over year to $2.6 billion. As of Sept. 30, 2026, total policies in force reached 217.6 million, up 3.9% year over year.

Allstate's Property-Liability Performance

The Property-Liability segment reported premiums earned of $15.09 billion in the third quarter, up 3.8% year over year, driven by growth in policies in force and higher homeowners insurance average premiums. However, the metric missed the Zacks Consensus Estimate of $15.12 billion and our estimate of $15.24 billion.

Premiums written increased 2.5% to $16 billion.

However, underwriting income declined 30.1% year over year to $2 billion, primarily reflecting increased catastrophe losses. The recorded combined ratio deteriorated 650 basis points to 86.6%, while the underlying combined ratio increased 180 basis points to 80.5%. 

Allstate's Protection Services Results

The Protection Services segment reported revenues of $964 million in the third quarter, up 6.9% year over year, driven primarily by growth in Protection Plans and Roadside businesses. The metric beat our estimate of $934.9 million. 

Protection Plans revenues increased 7.3% to $631 million, while Roadside revenues jumped 18.6% to $70 million. The segment's adjusted net income increased 39.1% year over year to $64 million. Protection Plans' adjusted net income improved to $47 million from $34 million, supported by higher gross margins and reduced operating expenses.

Arity revenues rose 11.8% to $76 million, driven by higher lead-generation advertising sales. Its adjusted net loss narrowed to $6 million from $8 million.

ALL's Q3 Financial Update

Allstate exited the third quarter with a cash balance of $549 million, down from $678 million at 2025-end. Total assets increased to $127.9 billion from $119.8 billion at the end of 2025.

Debt remained relatively stable at $7.5 billion. Total equity increased to $32.3 billion from $30.6 billion at 2025-end.

Book value per common share was $120.23 as of Sept. 30, 2026, up 25.3% year over year. The debt-to-capital resources ratio stood at 18.8% compared with 19.7% at 2025-end.

Allstate's Capital Deployment and Strategic Initiatives

Allstate returned approximately $1.5 billion to shareholders through share repurchases and dividends during the third quarter. As of Sept. 30, 2026, $1.3 billion remained available under its $4 billion share repurchase authorization initiated in February 2026.

The company continued expanding its Affordable, Simple, Connected insurance products, with auto offerings available in 46 states and homeowners products in 42 states. Its ALLIE Artificial Intelligence platform has also expanded to handle millions of service calls, with additional capabilities planned for early 2027.

ALL’s Zacks Rank

ALL 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

Here are some stocks from the insurance space that have also reported their quarterly results: Marsh & McLennan Companies, Inc. (MRSH Quick QuoteMRSH - Free Report) , The Hartford Insurance Group, Inc. (HIG Quick QuoteHIG - Free Report) and Unum Group (UNM Quick QuoteUNM - Free Report) . Here's how they have performed:

Marsh & McLennan reported third-quarter 2026 adjusted earnings per share of $2.03, which surpassed the Zacks Consensus Estimate by 3.6%. The bottom line advanced 9.7% year over year. Consolidated revenues of $6.9 billion improved 8% year over year. The figure rose 5% on an underlying basis. The top line beat the consensus mark by 3.5%. Marsh’s adjusted operating income improved 6.1% year over year to $1.5 billion. The adjusted operating margin remained unchanged year over year at 22.7%.

In the Risk and Insurance Service segment, revenues of $4.2 billion rose 7% year over year and 3% on an underlying basis. Adjusted operating income advanced 4% year over year to $1 billion. Revenues of Marsh Risk, a unit within the segment, rose 10% year over year and 5% on an underlying basis to $3.7 billion. In the United States/Canada operations, revenues grew 4% on an underlying basis. International operations witnessed revenue growth of 6% year over year on an underlying basis. The Consulting unit’s revenues advanced 9% year over year and 8% on an underlying basis to $2.7 billion. 

The Hartford’s third-quarter 2026 core earnings per share of $3.50 beat the Zacks Consensus Estimate by 11.1%. However, the bottom line declined 2.5% year over year. Revenues came in at $5.4 billion, topping the consensus mark of $5.3 billion. The top line improved 5.3% year over year. The Hartford's third-quarter core earnings declined 6.5% year over year to $956 million. Net income available to common stockholders increased 22.6% to $1.32 billion. Earned premiums grew 4.2% year over year to $6.4 billion.

Net investment income, before tax, advanced 12.6% year over year to $850 million.  The Business Insurance unit remained the largest contributor to operating performance, with written premiums rising 5.6% year over year to $3.8 billion. Net income declined 10.3% to $637 million, while core earnings improved 1.1% to $731 million. The segment's combined ratio deteriorated to 91.3 from 88.8 in the prior-year quarter. Personal Insurance written premiums declined 3.7% year over year to $950 million in the third quarter of 2026. Core earnings fell 26.6% year over year to $105 million.

Unum reported third-quarter 2026 adjusted operating earnings of $2.20 per share, surpassing the Zacks Consensus Estimate by 0.9%. The bottom line declined 21.7% year over year. Unum’s total adjusted operating revenues were $3.4 billion, up 4.6% year over year. The top line outpaced the Zacks Consensus Estimate by 15%. Premium income increased 4.2% from the prior-year quarter to $2.8 billion. Net investment income rose 9.6% year over year to $522.4 million. 

Unum U.S. premium income increased 5.2% year over year to $1.85 billion. Adjusted operating income declined 35.2% to $315.3 million. The group disability business reported a 60.4% fall in adjusted operating income to $94.8 million. Adjusted operating income in group life and accidental death and dismemberment declined 14.3%, while supplemental and voluntary business income decreased 9%. Unum International’s premium income increased 3.7% year over year to $291.6 million. Adjusted operating income plunged 99.5% to $0.2 million from $44.2 million in the year-ago quarter.