The Allstate Corporation reported sharply higher first-quarter earnings, as improved property-liability underwriting results, lower catastrophe losse and stronger investment income flowed through its P&C and protection businesses.
Total revenue for the first quarter of 2026 were $16.9 billion, up 3.0% from the prior-year period. Net income applicable to common shareholders rose to $2.4 billion, or $9.25 per diluted share, from $566 million, or $2.11 per diluted share, a year earlier. Adjusted net income was $2.8 billion, or $10.65 per diluted common share, compared to $949 million, or $3.53 per share, in the first quarter of 2025.
Allstate said policies in force reached 212 million, an increase of 2.5% year over year, reflecting growth in auto and homeowners insurance and in its Protection Plans business. Return on common shareholders’ equity over the trailing 12 months rose to 48.4% on a net income basis and 44.4% on an adjusted basis. Book value per common share increased to $113.52 from $74.61.
“Allstate’s strategy and execution capabilities generated strong earnings and increased growth in the first quarter,” said Tom Wilson, who leads The Allstate Corporation. “Revenues were $16.9 billion and net income was $2.4 billion. Policies in force reached 212 million, reflecting increased growth in auto and homeowners insurance and Protection Plans. The Property-Liability combined ratio was strong, and the underlying combined ratio improved in all personal lines products and brands. Investment income increased by 9.8%, reflecting portfolio growth and higher fixed income yields.”
Wilson said Allstate’s “broad set of competitive tools” under its Transformative Growth program contributed to record new business in the quarter, with auto and homeowners market share increasing in many states through pricing actions, product changes, expanded benefits, bundled offerings, cost efficiencies, analytics and marketing.
Property-Liability earned premiums of $14.8 billion rose 5.5% year over year, driven primarily by higher homeowners average premiums and policy in force growth. Underwriting income increased to $2.7 billion from $360 million in the prior-year quarter.
Premiums written were $14.6 billion, up 2.3%, as policy in force growth and higher homeowners average premiums were partly offset by lower average premiums on new auto business. Management noted that written premium growth trailed earned premium growth as Allstate sought to improve affordability while maintaining margins.
The Property-Liability recorded combined ratio was 82.0, an improvement of 15.4 points from 97.4 a year earlier, reflecting lower catastrophe losses, favorable prior-year reserve development and higher average earned premiums. The underlying combined ratio, which excludes catastrophes and prior-year reserve development, improved to 80.3 from 83.1.
Catastrophe losses in Property-Liability fell 43.7% to $1.24 billion from $2.20 billion in the first quarter of 2025. Policies in force in the segment increased 2.3% to 38.6 million, led by growth in auto and homeowners.
Allstate-branded Affordable, Simple, Connected auto products are now available in 45 states, with the associated homeowners product available in 36 states. The Custom360 auto and homeowners products for the independent agent channel are available in 40 states.
Allstate Protection auto results reflected continued execution of the Transformative Growth program, with margins and new business growth increasing across distribution channels.
Auto premiums written were essentially flat at $9.85 billion, while premiums earned rose 2.1% to $9.55 billion as prior rate increases continued to earn through.
The recorded auto combined ratio was 81.9, improving 9.4 points from 91.3 in the first quarter of 2025, largely due to prior-year reserve releases. Auto prior-year reserves were reduced by $838 million for accident years 2023 through 2025, lowering the current quarter combined ratio by 8.8 points.
The underlying auto combined ratio improved to 89.5 from 91.2, reflecting lower underlying loss and expense ratios. Auto policies in force grew 2.6% to 25.8 million, with new business up 9.4% driven by expanded distribution, increased marketing, new products and updated rating plans. Growth of 3.5% in active brand auto policies was partially offset by declines in legacy Esurance and Encompass policies.
Allstate reported a significant turnaround in homeowners, which moved from a catastrophe-driven loss in the prior year to a substantial underwriting profit.
Homeowners underwriting income was $685 million, compared to a loss of $451 million in the first quarter of 2025, which was affected by California wildfire losses.
Homeowners premiums written rose 8.3% to $3.74 billion, and premiums earned increased 13.9% to $4.16 billion, driven by higher average premiums and policy in force growth. Allstate brand homeowners average gross written premium increased 6.8%, reflecting continued rate increases and higher home replacement costs.
The recorded homeowners combined ratio improved to 83.5 from 112.3, a 28.8-point change, primarily due to lower catastrophe losses and higher average earned premiums. Catastrophe losses declined to $1.05 billion from $1.82 billion. The underlying combined ratio improved to 60.5 from 62.4, mainly as a result of higher premiums. Policies in force increased 2.5% to 7.74 million, led by 3.2% growth in Allstate brand homeowners policies, partly offset by reductions in National General legacy products.
Protection Services, which comprises five businesses offering embedded protection products, reported first-quarter revenues of $922 million, up 7.2%, led by Protection Plans and Roadside. Adjusted net income was $47 million, down $8 million from the prior-year quarter.
Protection Plans revenue increased 13.5% to $613 million, driven by international and domestic growth, while adjusted net income decreased $4 million to $41 million. Roadside revenue grew 14.5% to $63 million, supported by increased bundling with Allstate auto products and higher third-party sales, with adjusted net income rising to $12 million. Dealer Services generated revenue of $148 million, with adjusted net income of $5 million. Identity Protection revenue was stable at $40 million, with adjusted net income of $1 million. Arity revenue declined to $58 million from $79 million, reflecting lower lead generation revenue, and its adjusted net loss widened to $12 million from $6 million.
“Operating results generated an adjusted net income return on equity of 44.4% over the last year,” said John Dugenske, interim chief financial officer and president, investments and corporate strategy. “Increased capital was deployed to investment opportunities, and $881 million of cash was provided to shareholders through dividends and share repurchases.”
Allstate’s first-quarter performance comes as the U.S. P&C sector emerges from a period of intense margin repair in personal lines. Industry data showed that the aggregate U.S. P&C combined ratio improved to the mid‑90s in 2024–2025 after several years of elevated loss cost inflation and severe cat activity, but many large multiline carriers are still reporting full‑year combined ratios around or slightly below 95 and operating ROEs in the low‑ to mid‑teens.
Against that backdrop, Allstate’s 82.0 Property-Liability combined ratio and 80.3 underlying combined ratio place it well ahead of recent industry averages on underwriting margin, especially for a carrier with significant personal auto and homeowners exposure. Its adjusted net income ROE of more than 40% over the past 12 months is also at the upper end of the peer range, where double‑digit returns have become more common but 20%‑plus results remain relatively scarce outside certain specialty-focused groups.
Growth is more modest than at some competitors that have leaned aggressively into E&S and commercial lines. Overall property‑liability premiums written rose 2.3%, and auto written premiums were flat as affordability initiatives offset policy growth.
The quarter underscores Allstate’s current positioning as a scale personal lines carrier prioritizing margin restoration and capital return, while using pricing, product redesign and embedded protection offerings to cautiously rebuild growth as the personal lines cycle moves into a more competitive phase.
