Allstate Q2 2025: Strong underwriting income and growth drive robust profits

The Allstate Corporation reported strong financial results for Q2 2025, with net income soaring to $2.1 billion from $301 million in the same period of 2024. Despite incurring $1.99 billion in catastrophe losses, slightly lower than the previous year's $2.12 billion, the company achieved significant underwriting income improvement.

In the Property-Liability segment, underwriting income rebounded impressively to $1.3 billion, a notable recovery from a $145 million loss a year earlier. The combined ratio improved to 91.1 from 101.1, while the underlying combined ratio strengthened to 79.5, reflecting effective expense management and favorable loss trends.

Premiums earned in property-liability rose 7.5% to $14.3 billion, bolstered by higher premiums and modest policy growth. Although commercial policies declined by 31.3%, this was offset by growth in personal property-liability lines. Auto insurance premiums and policies in force grew moderately, alongside a nearly 10-point combined ratio improvement driven by rate increases and reserve benefits.

Homeowners insurance saw premium increases above 14%, with policies in force expanding by 2.3%. The combined ratio improved nearly 10 points due to favorable claim frequency and stable catastrophe losses. Investment portfolio income also rose, generating $754 million on $77.4 billion in assets, despite some net losses on investments and derivatives.

Allstate's leadership highlighted the company's strategic focus on growth, capital management, and shareholder value creation. The firm increased total policies in force by 4%, largely fueled by Protection Plans and new distribution channels, and completed divestitures of its health businesses to reallocate capital. The company also increased its dividend by 9% and repurchased $341 million of common stock, underlining strong financial discipline and shareholder returns.