Allstate's Financial Performance in Q4 2025: Strong Growth and Value for Policyholders
The Allstate Corporation, headquartered in Northbrook, Illinois, reported substantial progress in its financial performance for Q4 2025. CEO Tom Wilson highlighted the focus on customer service and cost management by reducing premiums for 7.8 million auto and homeowners insurance clients by an average of 17%, addressing inflationary pressures. This strategic approach is part of broader efforts to enhance customer experience, recording 69 million interactions and providing $38 billion in support throughout the year.
Allstate experienced an increase in total policies to 210.9 million by the end of the quarter, marking a 3.0% year-over-year growth. This rise is largely due to the introduction of affordable and simplified products. The company reported fourth-quarter revenue of $17.3 billion, with annual revenue reaching $67.7 billion. Net income for the year stood at $10.2 billion, with an adjusted figure of $9.3 billion. As a result, Allstate's board approved a dividend increase to $1.08 per share, set for distribution in the second quarter, alongside plans for a $4 billion share repurchase program following the completion of the existing $1.5 billion program.
Performance in Key Segments
In the Property-Liability segment, premium growth was strong, with a 5.9% increase in written premiums for the quarter. The Q4 combined ratio improved to 72.9 from the previous year's 86.9, demonstrating enhanced underwriting performance. Catastrophe losses decreased significantly to $209 million from $410 million in the prior year, raising underwriting income to $4 billion, up from $1.8 billion in 2024.
Within the auto insurance division, premiums written rose by 3.1% for the quarter, and the combined ratio improved to 80.8 from 93.5. The homeowners insurance unit also saw a 13.4% increase in premiums, coupled with a notable reduction in catastrophe losses, resulting in a combined ratio of 55.3 compared to 69.8 the previous year.
The investment segment maintained stable performance, producing $892 million in net investment income for the quarter, driven by market-based investments, even as performance-based investments saw a slight decline. Interim CFO John Dugenske emphasized proactive capital management strategies, noting an increased statutory surplus of $23 billion and $7.5 billion in holding company assets at year-end. In 2025, over $2.2 billion was returned to shareholders via repurchases and dividends, with plans to further enhance shareholder returns.
Through these strategic efforts, Allstate aims to sustain a robust return on equity while consistently improving value and service for policyholders. Detailed financial communications are available on their investor relations site, offering further insights into upcoming quarterly discussions.