The Allstate Corporation, a provider of personal property and casualty insurance in the United States, has announced robust financial results for the second quarter of 2025, highlighted by substantial underwriting income improvement across the business and improved profitability.
Across the group, net income increased to $2.1 billion from $301 million in Q2 2024, despite catastrophe losses for this year’s quarter hitting $1.99 billion, slightly down on the prior year’s $2.12 billion.
Within Property-Liability, underwriting income surged to $1.3 billion in the quarter, a notable turnaround from a loss of $145 million in the same period last year.
The property-liability combined ratio improved significantly to 91.1, down 10 points from 101.1 in the prior year quarter.
The underlying combined ratio also strengthened by 5.8 points to 79.5, reflecting continued progress in expense management and loss trends.
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Property-liability earned premiums increased 7.5% to $14.3 billion, supported by higher average premiums and modest growth in policies in force. Premiums written rose 5.4%, although commercial policies declined by 31.3%, partially offset by growth in personal property-liability lines.
Allstate Protection auto insurance saw premiums written increase 2.7% to $9.5 billion and earned premiums up 4.9%.
The auto insurance combined ratio improved by nearly 10 points to 86.0, supported by moderating loss costs, rate increases, and favourable reserve developments. Policies in force in the auto segment grew slightly by 0.5%, driven by expanded distribution and marketing efforts.
Homeowners insurance delivered stronger results with premiums written up 14.3% and earned premiums increasing 15.9%, driven by higher average premiums and policies in force growth of 2.3%. The homeowners combined ratio improved nearly 10 points to 102.0, aided by favourable non-catastrophe claim frequency and stable catastrophe losses of $1.6 billion, consistent with the prior year.
On the investment front, Allstate’s $77.4 billion portfolio generated net investment income of $754 million, a $42 million increase from the prior year quarter. This improvement was mainly due to market-based portfolio growth, partially offset by lower performance-based income.
Despite net losses of $144 million on investments and derivatives—driven by fixed income sales—the company recorded an overall total investment return of 1.4% for the quarter and 5.4% over the past twelve months. Unrealized capital gains also rose significantly due to lower interest rates boosting fixed income valuations.
“Allstate had strong operating and financial performance in the second quarter while executing our growth strategies,” commented Tom Wilson, who leads The Allstate Corporation.
He continued: “Revenues increased to $16.6 billion and net income was $2.1 billion for the quarter. Adjusted net income* was $1.6 billion, $5.94 per diluted share, which excludes a $643 million gain from the Employer Voluntary Benefits business divestiture.”
“In addition to strong financial results, we are creating shareholder value by increasing growth and proactively managing investments and capital. Total policies in force increased to 208 million, 4% higher than last year, led by Protection Plans. Personal property-liability policies have begun to grow due to expanded distribution, new products and increased marketing.
“Protection Plans continued to expand with international revenues up 30% above the prior year. The $77.4 billion investment portfolio generated $754 million of income in the quarter while lowering overall portfolio risk. Redeployment of capital out of the health businesses was completed on July 1 with the sale of Group Health, bringing total divestiture proceeds to $3.25 billion for this segment.”
“Allstate’s results support our growth strategy creating shareholder value,” added Jess Merten, Chief Financial Officer.
“Adjusted net income return on equity* was 28.6% for the latest 12 months. Divestiture of the Employer Voluntary Benefits and Group Health businesses positions those businesses for success and reallocates capital to Allstate’s strategic growth opportunities. Shareholders also benefited from a 9% increase in the quarterly dividend to $1.00 per common share, and we repurchased $341 million of common stock.”
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