Allstate Reports Strong Q4 Growth: Key Financial Highlights for 2025

The Allstate Corporation reported robust financial results for the fourth quarter and full year of 2025, highlighting substantial growth across various segments. In Q4, Allstate’s total revenue rose to $17.3 billion, a 5.1% increase from the previous year, with net income doubling to $3.8 billion. On an annual scale, the company recorded $67.7 billion in total revenue, reflecting a 5.6% increase, while net income surged to $10.2 billion from 2024’s $4.6 billion.

Q4 and Annual Financial Performance

Allstate's adjusted net income for the fourth quarter was $3.8 billion, a significant rise from $2.1 billion in Q4 2024. The entire year’s adjusted net income totaled $9.3 billion, supporting an adjusted net income return on equity of 38.3%. This demonstrates Allstate’s strong financial positioning within the insurance industry.

Property-Liability Segment Growth

The Property-Liability segment posted earned premiums of $14.8 billion in Q4, marking a 6.1% year-over-year increase due to higher average premiums and policy growth. Underwriting income reached $4.0 billion, compared to $1.8 billion the previous year. A 5.9% boost in written premiums was noted, driven by increased customer engagement in auto and homeowners insurance.

The Property-Liability combined ratio improved to 72.9 for the quarter, an enhancement by 14.0 points from Q4 2024, aided by favorable reserve releases and reduced catastrophe losses, which fell by 49% to $209 million.

Auto and Homeowners Insurance Dynamics

Allstate reported a 2.0% increase in policy counts, primarily through auto and homeowners insurance lines. CEO Tom Wilson credited a 3% growth in total policies to strategic premium reductions and enhanced customer service, emphasizing broad distribution and innovative product offerings.

For auto insurance, premiums experienced a rise, with a 2.3% increase in policies in force. Noteworthy was a 22.8% surge in new business, attributed to expanded distribution channels and strategic marketing efforts. Homeowners insurance highlighted its competitive edge by achieving an underwriting profit of $1.8 billion, up from $1.1 billion, bolstered by reduced catastrophe claims and strong underwriting practices.

Protection Services and Investment Income

Allstate's Protection Services division saw revenues increase by 3.1% in Q4 2025, totaling $917 million, thanks to growth in Protection Plans and Roadside services. Furthermore, net investment income climbed to $892 million, up $59 million from the previous period, driven by effective portfolio growth and management in alignment with regulatory compliance requirements.