Allstate Reports Robust Q2 2025 Earnings with Growth in Property-Liability and Shareholder Returns

The Allstate Corporation reported strong financial results for the second quarter of 2025, with consolidated revenues reaching $16.6 billion, a 5.8% increase from the prior year. Net income applicable to common shareholders rose significantly to $2.1 billion, compared to $301 million in the same quarter of 2024, with adjusted net income (excluding a gain from a business divestiture) at $1.6 billion. Earnings per diluted share were $5.94 on an adjusted basis. Total policies in force grew 4.2% to approximately 208 million, driven primarily by growth in personal property-liability policies and Allstate Protection Plans. Personal property-liability premiums earned rose 7.5%, with the recorded combined ratio improving to 91.1%, a notable improvement from 101.1% in Q2 2024, evidencing better underwriting performance and loss control. Catastrophe losses decreased slightly year-over-year but remain a significant factor affecting underwriting results. The Property-Liability segment recorded underwriting income of $1.28 billion for the quarter versus a loss in the prior year, showing operational turnaround. The Protection Auto insurance business saw premiums written increase 2.7%, with underwriting income growing substantially and a combined ratio improvement to 86.0%, reflecting enhanced risk management and pricing strategies. Homeowners insurance premiums also increased by 14.3%, though the segment recorded a underwriting loss, improving compared to the prior-year period, with underlying ratios indicating operational improvements apart from catastrophe impacts. The Protection Services segment’s revenues increased 12.2% driven by growth in Allstate Protection Plans and Arity, while Allstate Health and Benefits segment revenues declined 50.4% due to divestitures, with adjusted net income down 93.1%. The company’s investment portfolio, valued at $77.4 billion, generated $754 million in income during the quarter and benefited from reduced overall portfolio risk. Allstate completed the exit from health-related businesses with the sale of Group Health, reallocating capital towards strategic growth areas. The company maintained strong capital management, returning capital to shareholders through a dividend increase and stock repurchases totaling $341 million.