10-QPeriod: Q2 FY2026

ALLSTATE CORP Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 5, 2026For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

Allstate Corporation (ALL) reported strong financial results for the second quarter and first six months of 2026, driven by a significant increase in net income and substantial gains on investments. Total revenues saw a healthy increase, fueled by higher insurance premiums across auto and homeowners policies, as well as strong performance in investment income and valuation gains on equity investments. The company's financial position remains robust, with a notable increase in total assets and shareholders' equity, supported by robust net income and share repurchases. Key operational highlights include a substantial improvement in underwriting income for the Allstate Protection segment, benefiting from lower catastrophe losses and favorable prior year reserve releases, particularly in auto and homeowners insurance. The company also saw positive contributions from its Protection Services segment. Despite inflationary pressures impacting auto claim severity, Allstate's strategic initiatives and effective risk management appear to be driving positive financial outcomes.

Key Highlights

  • 1Net income attributable to common shareholders surged by $1.16 billion to $3.24 billion in Q2 2026 and by $3.02 billion to $5.67 billion in the first six months of 2026 compared to the prior year periods, largely due to improved underwriting income and strong equity investment gains.
  • 2Total revenues increased by 11.8% to $18.60 billion in Q2 2026 and by 7.4% to $35.54 billion in the first six months of 2026, driven by higher insurance premiums and investment income.
  • 3Allstate Protection segment's underwriting income significantly improved, increasing by $723 million in Q2 2026 and $3.02 billion in the first six months of 2026, primarily due to lower catastrophe losses and favorable prior year reserve releases.
  • 4Investments grew to $87.80 billion as of June 30, 2026, up from $83.24 billion at year-end 2025, reflecting strong operational cash flows.
  • 5Allstate shareholders' equity increased to $33.70 billion as of June 30, 2026, up from $30.61 billion at year-end 2025, driven by net income, though partially offset by share repurchases, dividends, and unrealized capital losses.
  • 6Book value per diluted common share rose to $123.38 as of June 30, 2026, a significant increase of 49.7% year-over-year, indicating strong value creation for shareholders.
  • 7The company repurchased 8 million common shares for $1.66 billion in the first six months of 2026 under its $4.00 billion repurchase program.

Frequently Asked Questions

The substantial increase in net income for Allstate in the second quarter of 2026 was primarily driven by higher underwriting income, especially in the Allstate Protection segment, and significant valuation gains on equity investments. These factors combined led to a robust performance compared to the same period in the prior year.

The Allstate Protection segment demonstrated a strong recovery, with underwriting income increasing significantly. This improvement was mainly due to a reduction in catastrophe losses compared to the prior year, favorable prior year reserve releases (particularly in auto and homeowners insurance), and an increase in earned premiums. These positive drivers more than offset higher expenses.

Allstate's investment portfolio totaled $87.80 billion as of June 30, 2026, showing an increase from year-end 2025. Net investment income rose considerably, driven by higher market-based and performance-based investment results. The company experienced substantial valuation gains on equity investments, contributing significantly to overall profitability.

Allstate is actively returning capital to shareholders through a combination of common share repurchases and dividends. In the first six months of 2026, the company repurchased 8 million shares for $1.66 billion under its authorized $4.00 billion repurchase program. Additionally, dividends were paid on both common and preferred shares.