Allstate Reports $3.8 Billion Q4 Net Income Growth Driven by Underwriting
Allstate Corporation demonstrated a significant increase in net income during the fourth quarter, reporting $3.8 billion compared to $1.9 billion from the previous year. This substantial growth is credited to advancements in underwriting and affordability measures, positioning Allstate ahead of its competitors in the personal lines sector.
Throughout the year, Allstate's net income reached $10.17 billion, translating to $38.06 per diluted share from total revenues of $67.69 billion. The company reported fourth-quarter revenues of $17.35 billion. This positive trajectory reflects improvements in the property-liability combined ratio, which stood at 80.1 in the third quarter of 2025—an impressive 16.3-point enhancement year-over-year. Key factors included reduced catastrophe losses and strategic reserve releases.
In specific insurance segments, the homeowners insurance line achieved $2.39 billion in underwriting income, with its combined ratio improving from 90.1 to 84.4. Meanwhile, auto insurance premiums increased by 4.4%, alongside a 2.3% rise in policies in force. Homeowners premiums surged by 15%, with a 2.5% increment in policies. This growth underscores Allstate's tactical approach to risk management and regulatory compliance requirements.
Comparatively, Allstate showcased a stronger performance against its primary personal lines competitor, Progressive, whose fourth-quarter combined ratio was about 88.0. Allstate's auto insurance combined ratio improved to 85.0, significantly better than the 95.0 reported in the prior year. Both companies outperformed the industry's averages, with projections by S&P Global Market Intelligence estimating the 2025 auto insurance combined ratio at 94.5, contributing to an all-lines property/casualty combined ratio of 96.2.
The personal auto market reversed previous trends, as noted by AM Best, achieving a net profit of $37.6 billion in 2024, in contrast to 2022's losses exceeding $21 billion. Allstate implemented rate reduction initiatives, including a 9% decrease across 32 states for its Affordable, Simple, Connected auto product. The SAVE program offered a 17% premium reduction to 7.8 million customers, impacting earned premiums by $810 million by year-end.
Allstate's market presence expanded, with personal lines new business growing to 11.6 million policies in 2025, up from 5.5 million in 2019, and total policies reaching 38.1 million from 33.5 million. The company increased its marketing investments to $2.1 billion from $900 million in 2019, enhancing its competitive edge as a leading carrier.
The investment portfolio rose to $83.2 billion, with net investment income at $3.45 billion. Allstate returned $2.2 billion to shareholders in 2025 through dividends and share repurchases. The board authorized a quarterly dividend of $1.08 per share and launched a $4 billion share repurchase program. Over the past decade, Allstate repurchased 39% of its outstanding shares, reinforcing its financial strength and commitment to stakeholders.