10-QPeriod: Q3 FY2025

ALLSTATE CORP Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 5, 2025For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

Allstate Corporation (ALL) reported a strong third quarter and nine-month performance for 2025, significantly improving net income attributable to common shareholders to $3.72 billion and $6.36 billion, respectively, compared to the prior year. This growth was primarily driven by a substantial increase in underwriting income within the Allstate Protection segment, which benefited from lower catastrophe losses, higher premiums earned, and favorable prior-year reserve releases. The company also benefited from gains on the disposition of its employer voluntary benefits (EVB) and group health businesses. Total revenues saw a healthy increase, supported by a rise in auto and homeowners insurance policies in force and premium rate adjustments. Net investment income also showed robust growth, reflecting improved market-based and performance-based investment results. Financially, Allstate's investments grew to $82.33 billion, and shareholders' equity increased significantly to $27.51 billion, boosting book value per diluted common share by 36.4% year-over-year. The company's capital position remains strong, with a debt-to-capitalization ratio of 17.9% as of September 30, 2025, well within regulatory limits.

Financial Highlights

35 data points
Beta

Revenue

$17.25B

Net Income

$3.75B

21.7% Net Margin

EPS (Diluted)

$13.95

Total Assets

$120.40B

Cash & Equivalents

$931.00M

Free Cash Flow

$3.24B

Financial Statements
Beta
Revenue$17.25B
Net Income$3.75B
EPS (Basic)$14.13
EPS (Diluted)$13.95
Shares Outstanding (Basic)263.10M
Shares Outstanding (Diluted)266.40M

Key Highlights

  • 1Net income applicable to common shareholders surged to $3.72 billion in Q3 2025 and $6.36 billion year-to-date, a substantial improvement from $1.16 billion and $2.65 billion in the same periods of 2024.
  • 2Total revenues increased by 3.8% to $17.26 billion for Q3 2025 and by 5.8% to $50.34 billion year-to-date, driven by higher insurance premiums.
  • 3Allstate Protection segment underwriting income significantly improved, reaching $3.04 billion in Q3 2025 from $555 million in Q3 2024, attributed to lower catastrophe losses and higher earned premiums.
  • 4The company successfully completed the dispositions of its EVB and group health businesses, recognizing gains of $722 million (after-tax) and $888 million (after-tax), respectively.
  • 5Investments grew to $82.33 billion as of September 30, 2025, up from $72.61 billion at the end of 2024, supporting the company's financial strength.
  • 6Allstate shareholders' equity increased by approximately 28.2% to $27.51 billion as of September 30, 2025, compared to $21.44 billion at the end of 2024.
  • 7Book value per diluted common share rose to $95.95 as of September 30, 2025, a 36.4% increase year-over-year.

Frequently Asked Questions

The primary driver of Allstate's improved net income was the substantial increase in underwriting income from the Allstate Protection segment. This was largely due to a significant reduction in catastrophe losses compared to the prior year, coupled with increased premiums earned and the benefit of prior year reserve releases.

The investment portfolio grew to $82.33 billion, an increase from $72.61 billion at the end of 2024. Net investment income increased by $298 million year-to-date, driven by higher market-based income due to increased average investment balances and elevated fixed income yields, as well as strong performance-based investment results across private equity and real estate holdings.

Allstate completed the sales of its employer voluntary benefits (EVB) and group health businesses in 2025. These dispositions contributed significant after-tax gains of $641 million (EVB) and $506 million (group health) to the nine-month results, substantially boosting net income. The company has now recast its segment reporting to reflect the results of these exited businesses.

Allstate maintains a strong capital position, with shareholders' equity increasing to $27.51 billion and a debt-to-capitalization ratio of 17.9% as of September 30, 2025, well within regulatory requirements. The company has a $1.5 billion share repurchase program authorized, with $695 million remaining as of September 30, 2025. The company has access to various liquidity sources, including credit facilities and commercial paper, and believes it has sufficient liquidity to meet its obligations.