Allstate Enhances Customer Value, Lowers Prices for 7.8 Million Customers in 2025
NORTHBROOK, Ill., Feb. 4, 2026 /PRNewswire/ -- The Allstate Corporation (NYSE: ALL) today reported financial results for the fourth quarter of 2025.
"Allstate had a terrific year by better serving customers and making protection more affordable," said Tom Wilson, who leads The Allstate Corporation. "We proactively reduced premiums for 7.8 million auto and homeowners insurance customers by an average of 17% through tailored coverage reviews to offset cost inflation. We also improved 69 million customer interactions and provided customers with nearly $38 billion in support and financial resources when the unexpected happened in 2025."
"Total policies in force increased to 210.9 million in the fourth quarter, up 3.0% from the prior year, driven by broad distribution and affordable, simple, connected products. Revenues increased to $17.3 billion in the fourth quarter and $67.7 billion for the full year. Full-year net income was $10.2 billion and adjusted net income* was $9.3 billion. Reflecting this success, the common dividend will increase to $1.08 per share to be paid in the second quarter and a $4.0 billion share repurchase program will be initiated when the existing $1.5 billion program is completed," concluded Wilson.
Fourth Quarter 2025 Results
Full Year 2025 Results
The Allstate Corporation Consolidated Highlights
As of or for the three months
ended December 31,
As of or for the twelve months
ended December 31,
($ in millions, except per share data and ratios)
2025
2024
% / pts
Change
2025
2024
% / pts
Change
Consolidated revenues
$ 17,345
$ 16,506
5.1 %
$ 67,685
$ 64,106
5.6 %
Net income applicable to common shareholders
3,803
1,899
100.3 %
10,165
4,550
123.4 %
per diluted common share
14.37
7.07
103.3 %
38.06
16.99
124.0 %
Adjusted net income*
3,788
2,062
83.7 %
9,304
4,906
89.6 %
per diluted common share*
14.31
7.67
86.6 %
34.83
18.32
90.1 %
Return on Allstate common shareholders' equity (trailing twelve months)
Net income applicable to common shareholders
42.3 %
25.8 %
16.5
Adjusted net income*
38.3 %
26.8 %
11.5
Common shares outstanding (in millions)
260.1
265.0
(1.8) %
Book value per common share
$ 108.45
$ 72.35
49.9 %
Total policies in force (in thousands) (1)
210,937
204,741
3.0 %
(1)
Excludes policies in force related to the employer voluntary benefits and group health businesses sold.
*
Measures used in this release that are not based on accounting principles generally accepted in the United States of America ("non-GAAP") are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the "Definitions of Non-GAAP Measures" section of this document.
Property-Liability Results
As of or for the three months
ended December 31,
As of or for the twelve months
ended December 31,
($ in millions)
2025
2024
% / pts
Change
2025
2024
% / pts
Change
Premiums written
$ 14,572
$ 13,757
5.9 %
$ 59,546
$ 55,926
6.5 %
Premiums earned
14,776
13,933
6.1 %
57,682
53,866
7.1 %
Recorded combined ratio
72.9
86.9
(14.0)
85.2
94.3
(9.1)
Underlying combined ratio*
76.6
83.0
(6.4)
79.4
84.6
(5.2)
Catastrophe losses
$ 209
$ 410
(49.0) %
$ 4,959
$ 4,964
(0.1) %
Underwriting income
4,006
1,832
118.7 %
8,540
3,080
177.3 %
Policies in force (in thousands)
38,275
37,530
2.0 %
Allstate Protection Auto Results
As of or for the three months
ended December 31,
As of or for the twelve months
ended December 31,
($ in millions, except ratios)
2025
2024
% / pts
Change
2025
2024
% / pts
Change
Premiums written
$ 9,399
$ 9,116
3.1 %
$ 38,649
$ 37,296
3.6 %
Premiums earned
9,622
9,348
2.9 %
38,090
36,475
4.4 %
Recorded combined ratio
80.8
93.5
(12.7)
85.0
95.0
(10.0)
Underlying combined ratio*
87.6
93.0
(5.4)
88.1
93.4
(5.3)
Underwriting income
1,851
603
NM
5,724
1,810
NM
Policies in force (in thousands)
25,504
24,936
2.3 %
NM = not meaningful
Allstate Protection Homeowners Results
As of or for the three months
ended December 31,
As of or for the twelve months
ended December 31,
($ in millions, except ratios)
2025
2024
% / pts
Change
2025
2024
% / pts
Change
Premiums written
$ 4,110
$ 3,624
13.4 %
$ 16,565
$ 14,416
14.9 %
Premiums earned
4,055
3,548
14.3 %
15,363
13,360
15.0 %
Recorded combined ratio
55.3
69.8
(14.5)
84.4
90.1
(5.7)
Catastrophe Losses
$ 170
$ 315
(46.0) %
$ 4,087
$ 3,717
10.0 %
Underlying combined ratio*
51.4
59.5
(8.1)
57.9
62.5
(4.6)
Underwriting income
1,813
1,070
69.4 %
2,393
1,319
81.4 %
Policies in force (in thousands)
7,697
7,511
2.5 %
Protection Services Results
Three months ended
December 31,
Twelve months ended
December 31,
($ in millions)
2025
2024
% / $
Change
2025
2024
% / $
Change
Total revenues (1)
$ 917
$ 889
3.1 %
$ 3,546
$ 3,237
9.5 %
Protection Plans
609
528
15.3
2,300
1,987
15.8
Dealer Services
148
147
0.7
590
587
0.5
Roadside
61
54
13.0
231
224
3.1
Arity
60
121
(50.4)
266
286
(7.0)
Identity Protection
39
39
—
159
153
3.9
Adjusted net income
$ 57
$ 50
$ 7
$ 218
$ 217
$ 1
Protection Plans
49
37
12
179
157
22
Dealer Services
7
4
3
21
21
—
Roadside
12
10
2
46
39
7
Arity
(12)
(3)
(9)
(34)
(8)
(26)
Identity Protection
1
2
(1)
6
8
(2)
(1)
Excludes net gains and losses on investments and derivatives.
Allstate Investment Results
Three months ended
December 31,
Twelve months ended
December 31,
($ in millions, except ratios)
2025
2024
$ / pts
Change
2025
2024
$ / pts
Change
Net investment income
$ 892
$ 833
$ 59
$ 3,449
$ 3,092
$ 357
Market-based (1)
804
727
77
3,036
2,728
308
Performance-based (1)
146
167
(21)
648
618
30
Net gains (losses) on investments and derivatives
$ 73
$ (201)
$ 274
$ (168)
$ (225)
$ 57
Change in unrealized net capital gains and losses, pre-tax (2)
$ (70)
$ (1,444)
$ 1,374
$ 1,365
$ (192)
$ 1,557
Total return on investment portfolio (2)
1.1 %
(1.1) %
2.2
5.8 %
3.8 %
2.0
(1)
Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.
(2)
Includes investments held for sale.
Proactive Capital Management
"Fourth‑quarter operating results generated an attractive adjusted net income return on equity and additional deployable capital," said John Dugenske, Interim Chief Financial Officer and President, Investments and Corporate Strategy. "Total estimated statutory surplus increased to $23.0 billion, and the holding company ended the year with $7.5 billion of assets. Over $2.2 billion was returned to shareholders in 2025, through a combination of share repurchases and common shareholder dividends. The common shareholder dividend will increase to $1.08, payable on April 1, 2026, to stockholders of record at the close of business on March 2, 2026. In addition, a $4.0 billion share repurchase program, over 24 months, will commence once the existing $1.5 billion program has been fully executed," concluded Dugenske.
Visit www.allstateinvestors.com for additional information about Allstate's results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, February 5. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.
Forward-Looking Statements
This news release contains "forward-looking statements" that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like "plans," "seeks," "expects," "will," "should," "anticipates," "estimates," "intends," "believes," "likely," "targets" and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.
About Allstate
The Allstate Corporation (NYSE: ALL) protects people from life's uncertainties with affordable, simple and connected protection for autos, homes, electronic devices and identities. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online and at the workplace. Allstate has more than 210 million policies in force and is widely known for the slogan "You're in Good Hands with Allstate." For more information, visit www.allstate.com.
THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
($ in millions, except par value data)
December 31,
2025
December 31,
2024
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $58,730 and $53,616)
$ 59,115
$ 52,747
Equity securities, at fair value (cost $8,026 and $4,329)
8,398
4,463
Mortgage loans, net
879
784
Limited partnership interests
8,844
9,255
Short-term, at fair value (amortized cost $4,888 and $4,539)
4,887
4,537
Other investments, net
1,114
824
Total investments
83,237
72,610
Cash
678
704
Premium installment receivables, net
11,474
10,614
Deferred policy acquisition costs
6,163
5,773
Reinsurance and indemnification recoverables, net
8,501
8,924
Accrued investment income
708
615
Deferred income taxes
—
231
Property and equipment, net
627
669
Goodwill
3,118
3,245
Other assets, net
5,252
5,140
Assets held for sale
—
3,092
Total assets
$ 119,758
$ 111,617
Liabilities
Reserve for property and casualty insurance claims and claims expense
$ 41,079
$ 41,917
Unearned premiums
29,080
26,909
Claim payments outstanding
1,419
1,567
Deferred income taxes
227
—
Other liabilities and accrued expenses
9,874
9,659
Debt
7,490
8,085
Liabilities held for sale
—
2,113
Total liabilities
89,169
90,250
Equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized,
82.0 thousand shares issued and outstanding, $2,050 aggregate liquidation preference
2,001
2,001
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued,
260 million and 265 million shares outstanding
9
9
Additional capital paid-in
4,158
4,029
Retained income
62,393
53,288
Treasury stock, at cost (640 million and 635 million shares)
(38,206)
(36,996)
Accumulated other comprehensive income (loss):
Unrealized net capital gains and losses
297
(771)
Unrealized foreign currency translation adjustments
(55)
(145)
Unamortized pension and other postretirement prior service credit
11
11
Discount rate for reserve for future policy benefits
2
16
Total accumulated other comprehensive income (loss)
255
(889)
Total Allstate shareholders' equity
30,610
21,442
Noncontrolling interest
(21)
(75)
Total equity
30,589
21,367
Total liabilities and equity
$ 119,758
$ 111,617
THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
Revenues
Property and casualty insurance premiums
$ 15,511
$ 14,591
$ 60,503
$ 56,388
Accident and health insurance premiums and contract charges
114
482
946
1,921
Other revenue
755
801
2,955
2,930
Net investment income
892
833
3,449
3,092
Net gains (losses) on investments and derivatives
73
(201)
(168)
(225)
Total revenues
17,345
16,506
67,685
64,106
Costs and expenses
Property and casualty insurance claims and claims expense
7,736
9,024
37,454
39,735
Accident, health and other policy benefits
68
337
656
1,241
Amortization of deferred policy acquisition costs
2,125
2,062
8,389
8,039
Operating costs and expenses
2,332
2,505
8,977
8,626
Pension and other postretirement remeasurement (gains) losses
(5)
(52)
(35)
(37)
Restructuring and related charges
13
10
61
61
Amortization of purchased intangibles
56
70
231
280
Interest expense
98
101
399
400
Total costs and expenses
12,423
14,057
56,132
58,345
Gain (loss) on disposition of operations
(7)
—
1,603
—
Income from operations before income tax expense
4,915
2,449
13,156
5,761
Income tax expense
1,088
559
2,890
1,162
Net income
3,827
1,890
10,266
4,599
Less: Net loss attributable to noncontrolling interest
(5)
(38)
(16)
(68)
Net income attributable to Allstate
3,832
1,928
10,282
4,667
Less: Preferred stock dividends
29
29
117
117
Net income applicable to common shareholders
$ 3,803
$ 1,899
$ 10,165
$ 4,550
Earnings per common share:
Net income applicable to common shareholders per common share -
Basic
$ 14.55
$ 7.16
$ 38.56
$ 17.22
Weighted average common shares - Basic
261.3
265.1
263.6
264.3
Net income applicable to common shareholders per common share -
Diluted
$ 14.37
$ 7.07
$ 38.06
$ 16.99
Weighted average common shares - Diluted
264.7
268.7
267.1
267.8
Definitions of Non-GAAP Measures
We believe that investors' understanding of Allstate's performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Adjusted net income (loss) is net income (loss) applicable to common shareholders, excluding:
Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income.
We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company's ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of net gains and losses on investments and derivatives, pension and other postretirement remeasurement gains and losses, amortization or impairment of purchased intangibles, gain or loss on disposition and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Net gains and losses on investments and derivatives, and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Gain or loss on disposition is excluded because it is non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management's performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business.
The following tables reconcile net income (loss) applicable to common shareholders and adjusted net income (loss). Taxes on adjustments to reconcile net income (loss) applicable to common shareholders and adjusted net income (loss) generally use a 21% effective tax rate.
($ in millions, except per share data)
Three months ended December 31,
2025
2024
2025
2024
Consolidated
Per diluted common share
Net income applicable to common shareholders
$ 3,803
$ 1,899
$ 14.37
$ 7.07
Net (gains) losses on investments and derivatives
(73)
201
(0.28)
0.75
Pension and other postretirement remeasurement (gains) losses
(5)
(52)
(0.02)
(0.20)
Amortization of purchased intangibles
56
70
0.21
0.26
Gain on disposition
—
(10)
—
(0.04)
Income tax expense (benefit)
7
(46)
0.03
(0.17)
Adjusted net income *
$ 3,788
$ 2,062
$ 14.31
$ 7.67
Twelve months ended December 31,
2025
2024
2025
2024
Consolidated
Per diluted common share
Net income applicable to common shareholders
$ 10,165
$ 4,550
$ 38.06
$ 16.99
Net (gains) losses on investments and derivatives
168
225
0.63
0.84
Pension and other postretirement remeasurement (gains) losses
(35)
(37)
(0.13)
(0.14)
Amortization of purchased intangibles
231
280
0.86
1.05
Gain on disposition
(1,616)
(16)
(6.05)
(0.06)
Income tax expense (benefit)
391
(96)
1.46
(0.36)
Adjusted net income *
$ 9,304
$ 4,906
$ 34.83
$ 18.32
Adjusted net income (loss) return on Allstate common shareholders' equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders' equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on Allstate common shareholders' equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average Allstate common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders' equity primarily applicable to Allstate's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and return on Allstate common shareholders' equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on Allstate common shareholders' equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on Allstate common shareholders' equity from return on Allstate common shareholders' equity is the transparency and understanding of their significance to return on common shareholders' equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on Allstate common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders' equity and return on Allstate common shareholders' equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders' equity results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management's utilization of capital. We also provide it to facilitate a comparison to our long-term adjusted net income return on Allstate common shareholders' equity goal. Adjusted net income return on Allstate common shareholders' equity should not be considered a substitute for return on Allstate common shareholders' equity and does not reflect the overall profitability of our business.
The following tables reconcile return on Allstate common shareholders' equity and adjusted net income (loss) return on Allstate common shareholders' equity.
($ in millions)
For the twelve months ended
December 31,
2025
2024
Return on Allstate common shareholders' equity
Numerator:
Net income applicable to common shareholders
$ 10,165
$ 4,550
Denominator:
Beginning Allstate common shareholders' equity
$ 19,441
$ 15,769
Ending Allstate common shareholders' equity (1)
28,609
19,441
Average Allstate common shareholders' equity
$ 24,025
$ 17,605
Return on Allstate common shareholders' equity
42.3 %
25.8 %
($ in millions)
For the twelve months ended
December 31,
2025
2024
Adjusted net income return on Allstate common shareholders' equity
Numerator:
Adjusted net income *
$ 9,304
$ 4,906
Denominator:
Beginning Allstate common shareholders' equity
$ 19,441
$ 15,769
Less: Unrealized net capital gains and losses
(771)
(604)
Adjusted beginning Allstate common shareholders' equity
20,212
16,373
Ending Allstate common shareholders' equity (1)
28,609
19,441
Less: Unrealized net capital gains and losses
297
(771)
Adjusted ending Allstate common shareholders' equity
28,312
20,212
Average adjusted Allstate common shareholders' equity
$ 24,262
$ 18,293
Adjusted net income return on Allstate common shareholders'
equity *
38.3 %
26.8 %
(1)
Excludes equity related to preferred stock of $2,001 million for both periods shown.
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization or impairment of purchased intangibles ("underlying combined ratio") is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year non-catastrophe reserve reestimates on the combined ratio, and the effect of amortization or impairment of purchased intangibles on the combined ratio. We believe that this ratio is useful to investors, and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves, which could increase or decrease current year net income. Amortization or impairment of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.
The following tables reconcile the respective combined ratio to the underlying combined ratio. Underwriting margin is calculated as 100% minus the combined ratio.
Property-Liability
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
Combined ratio
72.9
86.9
85.2
94.3
Effect of catastrophe losses
(1.4)
(2.9)
(8.6)
(9.2)
Effect of prior year non-catastrophe reserve reestimates
5.4
(0.6)
3.1
(0.2)
Effect of amortization of purchased intangibles
(0.3)
(0.4)
(0.3)
(0.3)
Underlying combined ratio*
76.6
83.0
79.4
84.6
Effect of prior year catastrophe reserve reestimates
0.3
(0.4)
—
(0.7)
Allstate Protection - Auto Insurance
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
Combined ratio
80.8
93.5
85.0
95.0
Effect of catastrophe losses
(0.4)
(0.6)
(1.4)
(2.2)
Effect of prior year non-catastrophe reserve reestimates
7.5
0.4
4.8
0.9
Effect of amortization of purchased intangibles
(0.3)
(0.3)
(0.3)
(0.3)
Underlying combined ratio*
87.6
93.0
88.1
93.4
Effect of prior year catastrophe reserve reestimates
—
(0.1)
(0.1)
(0.1)
Allstate Protection - Homeowners Insurance
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
Combined ratio
55.3
69.8
84.4
90.1
Effect of catastrophe losses
(4.2)
(8.9)
(26.6)
(27.8)
Effect of prior year non-catastrophe reserve reestimates
0.6
(1.1)
0.4
0.5
Effect of amortization of purchased intangibles
(0.3)
(0.3)
(0.3)
(0.3)
Underlying combined ratio*
51.4
59.5
57.9
62.5
Effect of prior year catastrophe reserve reestimates
1.0
(1.2)
0.3
(2.4)
SOURCE The Allstate Corporation