2025 Financial Highlights for The Allstate Corporation

Overview The Allstate Corporation had a strong financial performance in 2025, with consolidated net income applicable to common shareholders reaching $10.17 billion, up from $4.55 billion in 2024. This was driven by higher underwriting income and gains on business dispositions. Total revenue increased 5.6% to $67.69 billion, primarily due to growth in auto and homeowners insurance policies in force and premium rate increases. Net investment income also rose, up $357 million to $3.45 billion, due to improved market-based and performance-based investment results.

Financial Position Allstate’s investments totaled $83.24 billion as of December 31, 2025, up from $72.61 billion a year earlier. Shareholders’ equity increased to $30.61 billion, up from $21.44 billion, primarily due to net income and higher unrealized gains on investments, partially offset by share repurchases and dividends. Book value per diluted common share rose 49.9% to $108.45. Return on average common shareholders’ equity was 42.3%, up from 25.8% in 2024.

Property-Liability Operations Allstate’s Property-Liability operations, which include the Allstate Protection and Run-off Property-Liability segments, reported strong underwriting results. Underwriting income was $8.54 billion in 2025, up from $3.08 billion in 2024, driven by higher premiums earned and prior year reserve releases, partially offset by higher expenses.

The Allstate Protection segment saw underwriting income of $8.69 billion, up from $3.15 billion in 2024. This was primarily due to increased premiums earned and the benefit of prior year reserve releases, partially offset by higher expenses. Auto insurance premiums written grew 3.6% and homeowners premiums written increased 14.9%, reflecting rate increases and policy growth.

The Run-off Property-Liability segment reported an underwriting loss of $154 million in 2025, compared to a loss of $73 million in 2024, primarily related to reserve reestimates for asbestos, environmental and other run-off claims.

Protection Services Segment The Protection Services segment, which includes product protection plans, automotive protection, roadside assistance, and identity protection, had a 0.5% increase in adjusted net income to $218 million in 2025. Premiums written grew 7.5% to $3.01 billion, driven by international expansion of the Protection Plans business. Policies in force increased 3.3% to 172.2 million.

Investments Allstate’s investment portfolio totaled $83.24 billion as of December 31, 2025, up from $72.61 billion a year earlier. The portfolio is managed using a combination of market-based and performance-based strategies, with 88.2% allocated to market-based investments and 11.8% to performance-based.

The fixed income portfolio had a duration of 5.1 years as of year-end 2025, down from 5.3 years in 2024. Equity securities were increased by $3.94 billion in 2025, primarily funded through sales of investment grade corporate bonds and short-term investments. As of December 31, 2025, 92.1% of the fixed income portfolio was rated investment grade.

Reserves and Reinsurance Allstate’s total net reserves for property and casualty insurance claims and claims expense were $33.07 billion as of December 31, 2025, down from $33.32 billion a year earlier. Prior year reserve reestimates decreased reserves by $1.81 billion in 2025, compared to a $308 million decrease in 2024.

Allstate utilizes significant reinsurance programs to manage its exposure to catastrophe risk and support the required statutory surplus and financial strength ratings of its insurance subsidiaries. Reinsurance recoverables, net of the allowance for uncollectible amounts, were $8.28 billion as of December 31, 2025.

Outlook and Key Priorities Looking ahead, Allstate’s key priorities include enhancing investment portfolio returns through dynamic capital allocation, leveraging capabilities to earn attractive risk-adjusted returns, and investing to meet the specific needs of its businesses and liability profiles. The company will continue to monitor and manage risks related to factors such as interest rates, inflation, credit spreads, equity returns, and currency exchange rates.

In the Allstate Protection segment, the company will focus on implementing rates to keep pace with increasing costs, while exploring opportunities for rate investments towards growth in states where acceptable returns can be achieved. In Florida, Allstate is not writing new homeowners business and is substantially complete with the non-renewal of certain policies. The company may not be able to grow in certain states without regulatory or legislative reforms that enable customers to be provided coverage at appropriate risk-adjusted returns.

Overall, Allstate’s strong financial performance in 2025, driven by growth in its core insurance and protection services businesses, as well as prudent investment management, positions the company well to continue delivering value to customers and shareholders.