Allstate Corporation continued its positive streak in the third quarter of 2025, posting total revenues of $17.3 billion, an increase of $628 million, or 3.8%, from the same period last year.
Net income applicable to common shareholders reached $3.7 billion, up from $1.2 billion in the third quarter of 2024, reflecting improved operating results across the company.
Adjusted net income for the quarter was $3.0 billion compared to $1.0 billion in the prior year quarter. The adjusted net income return on common shareholders' equity stood at 34.7%.
Property-liability earned premiums totaled $14.5 billion, a 6.1% rise from the previous year, driven by higher average premiums and growth in policies in force. Underwriting income for the segment was $2.9 billion, compared to $495 million in the prior year quarter. Premiums written also increased by 6.3%, reflecting gains in auto and homeowners insurance.
Policies in force grew by 1.2%, led by auto and homeowners insurance, while commercial policies declined by 26.9%.
The property-liability combined ratio for the quarter was 80.1, an improvement of 16.3 points from the prior year, due to lower catastrophe losses and non-catastrophe reserve releases. Allstate protection’s auto insurance segment saw a 3.5% increase in written and earned premiums compared to the prior year. Rate increases in auto insurance led to a 0.6% annualized premium impact, reflecting moderation in loss cost trends.
Allstate’s second quarter results also showed significant momentum. The company reported total revenues of $16.6 billion for Q2, up 5.8% from the prior-year quarter. Net income attributable to common shareholders reached $2.1 billion, a sharp increase from $301 million in the same period of 2024.
"The Transformative Growth technology platform also supports accelerated deployment of generative and agentic artificial intelligence to lower costs and reimagine customer value. Allstate will continue to create shareholder value by innovating, embracing change and being the best protection provider,” Allstate CEO Tom Wilson (pictured above) said.
Auto insurance policies in force rose by 1.3%, with a 23.0% increase in new business partially offset by lower customer retention. Active brand auto insurance policies increased by 2.8%, while legacy Esurance and Encompass policies declined.
The auto insurance combined ratio was 82.0, a 12.8-point improvement from the prior year, attributed to higher average earned premiums, moderating loss costs, and reserve releases.
Prior year non-catastrophe reserve reestimates provided a $480 million benefit, improving the combined ratio by 5.0 points. The underlying auto insurance combined ratio was 86.0, a 6.0-point improvement, with 2.4 points of favorable development on claims from earlier in the year.
Allstate Protection’s homeowners insurance segment reported an underwriting profit of $1.1 billion, up from $60 million in the prior year quarter, supported by lower catastrophe losses and strong underlying margins. Written and earned premiums increased by 13.1% and 14.0%, respectively, due to higher average premiums and policy growth.
The average gross written premium for Allstate brand homeowners insurance rose by 12.0%, reflecting ongoing rate increases and higher home replacement costs. Policies in force increased by 2.1%, primarily from 3.6% growth in Allstate brand policies, offset by a reduction in National General legacy products.
Catastrophe losses for the quarter were $479 million, down $752 million from the prior year, attributed to fewer and less severe events and no hurricanes or tropical storms. The homeowners insurance combined ratio was 71.5, 26.7 points lower than the third quarter of 2024, due to lower catastrophe losses, higher average earned premiums, and favorable non-catastrophe frequency trends.
The underlying combined ratio improved by 2.3 points to 59.8, driven by higher average premiums and favorable non-catastrophe loss trends.
