Allstate Reports Impressive Q4 2025 Financial Gains in Property-Liability Insurance
In the fourth quarter of 2025, Allstate Corp. reported a net income of approximately $3.8 billion attributable to common shareholders, marking a substantial increase from the $1.9 billion recorded in the same period the previous year. The Property-Liability division exhibited a significant boost in its Q4 combined ratio, reaching 72.9, which is 14 points better than the prior year's quarter. During this time, catastrophe losses amounted to $209 million, down from $410 million the previous year.
For the entire year of 2025, the Property-Liability segment's net income surged over 123% to approximately $10.2 billion compared to 2024. Although catastrophe losses remained relatively stable at around $5 billion, the combined ratio improved by 9.1 points to 85.2. Q4 also saw Property-Liability operations generating an underwriting income of $4.0 billion, compared to $1.8 billion in the same quarter last year. Additionally, Q4 net premiums written increased by 5.9%, totaling about $14.6 billion.
In the auto insurance sector, Allstate reported a Q4 underwriting income of roughly $1.8 billion, a notable increase from the $603 million recorded in Q4 2024. The segment's combined ratio improved by 12.7 points to 80.8, aided by previous year reserve reestimates contributing a 7.5-point advantage, thanks to favorable severity developments in personal auto injury and physical damage.
Homeowners Insurance Developments
Allstate’s homeowners insurance line saw a 13.4% rise in Q4 premiums written. A 46% reduction in catastrophe losses, amounting to $170 million, allowed this line to achieve approximately $1.8 billion in underwriting income, up from about $1.1 billion year-on-year. The homeowners' segment posted a Q4 combined ratio of 55.3, while the full-year combined ratio improved to 84.4 from 90.1 in 2024.
CEO Tom Wilson noted that in 2025, Allstate strategically lowered premiums by an average of 17% for 7.8 million auto and homeowners insurance policyholders through tailored coverage reviews to mitigate cost inflation. By the end of the year, Allstate’s policies in force increased by 3% to nearly 211 million, which Wilson attributed to their expansive distribution and the affordability and simplicity of their products.