"Allstate had a terrific year by better serving customers and making protection more affordable," said Tom Wilson, who leads The Allstate Corporation. "We proactively reduced premiums for 7.8 million auto and homeowners insurance customers by an average of 17% through tailored coverage reviews to offset cost inflation. We also improved 69 million customer interactions and provided customers with nearly $38 billion in support and financial resources when the unexpected happened in 2025."
"Total policies in force increased to 210.9 million in the fourth quarter, up 3.0% from the prior year, driven by broad distribution and affordable, simple, connected products. Revenues increased to $17.3 billion in the fourth quarter and $67.7 billion for the full year. Full-year net income was $10.2 billion and adjusted net income* was $9.3 billion. Reflecting this success, the common dividend will increase to $1.08 per share to be paid in the second quarter and a $4.0 billion share repurchase program will be initiated when the existing $1.5 billion program is completed," concluded Wilson.
Fourth Quarter 2025 Results
Total revenues of $17.3 billion in the fourth quarter of 2025 were $839 million or 5.1% higher than the prior year quarter.
Net income applicable to common shareholders was $3.8 billion in the fourth quarter of 2025, compared to $1.9 billion in the prior year quarter, reflecting strong operating results.
Adjusted net income* was $3.8 billion, or $14.31 per diluted share, compared to $2.1 billion in the prior year quarter.
Full Year 2025 Results
Total revenues were $67.7 billion, 5.6% above the prior year.
Net income applicable to common shareholders was $10.2 billion compared to $4.6 billion in 2024.
Adjusted net income* was $9.3 billion generating an adjusted net income return on equity* of 38.3%.
The Allstate Corporation Consolidated Highlights
As of or for the three monthsended December 31,
As of or for the twelve months ended December 31,
($ in millions, except per share data and ratios)
2025
2024
% / pts
Change
2025
2024
% / pts
Change
Consolidated revenues
$ 17,345
$ 16,506
5.1 %
$ 67,685
$ 64,106
5.6 %
Net income applicable to common shareholders
3,803
1,899
100.3 %
10,165
4,550
123.4 %
per diluted common share
14.37
7.07
103.3 %
38.06
16.99
124.0 %
Adjusted net income*
3,788
2,062
83.7 %
9,304
4,906
89.6 %
per diluted common share*
14.31
7.67
86.6 %
34.83
18.32
90.1 %
Return on Allstate common shareholders' equity (trailing twelve months)
Net income applicable to common shareholders
42.3 %
25.8 %
16.5
Adjusted net income*
38.3 %
26.8 %
11.5
Common shares outstanding (in millions)
260.1
265.0
(1.8) %
Book value per common share
$ 108.45
$ 72.35
49.9 %
Total policies in force (in thousands) (1)
210,937
204,741
3.0 %
(1)
Excludes policies in force related to the employer voluntary benefits and group health businesses sold.
*
Measures used in this release that are not based on accounting principles generally accepted in the United States of America ("non-GAAP") are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the "Definitions of Non-GAAP Measures" section of this document.
Property-Liability earned premiums of $14.8 billion increased 6.1% in the fourth quarter of 2025 compared to the prior year, primarily driven by higher average premiums and policy in force growth. Underwriting income was $4.0 billion compared to $1.8 billion in the prior year quarter.
Property-Liability Results
As of or for the three months ended December 31,
As of or for the twelve months ended December 31,
($ in millions)
2025
2024
% / pts
Change
2025
2024
% / pts
Change
Premiums written
$ 14,572
$ 13,757
5.9 %
$ 59,546
$ 55,926
6.5 %
Premiums earned
14,776
13,933
6.1 %
57,682
53,866
7.1 %
Recorded combined ratio
72.9
86.9
(14.0)
85.2
94.3
(9.1)
Underlying combined ratio*
76.6
83.0
(6.4)
79.4
84.6
(5.2)
Catastrophe losses
$ 209
$ 410
(49.0) %
$ 4,959
$ 4,964
(0.1) %
Underwriting income
4,006
1,832
118.7 %
8,540
3,080
177.3 %
Policies in force (in thousands)
38,275
37,530
2.0 %
Premiums written increased 5.9% compared to the prior year quarter, reflecting higher auto and homeowners insurance average premiums and policies in force.
Property-Liability combined ratio was 72.9 for the quarter, which was an improvement of 14.0 points versus the prior year quarter due to higher average earned premiums, the benefit of non-catastrophe reserve releases and lower catastrophe losses.
Policies in force increased by 2.0%, led by growth in auto and homeowners insurance policies.
Allstate-branded Affordable, Simple, Connected auto insurance products are now available in 43 states with the homeowners insurance product available in 31 states. Custom360® middle market standard and preferred auto and homeowners insurance products for the independent agent channel are available in 36 states.
Allstate Protection auto insurance results benefited from the Transformative Growth initiative, delivering strong margins and higher new business levels than the prior year.
Allstate Protection Auto Results
As of or for the three months ended December 31,
As of or for the twelve months ended December 31,
($ in millions, except ratios)
2025
2024
% / pts
Change
2025
2024
% / pts
Change
Premiums written
$ 9,399
$ 9,116
3.1 %
$ 38,649
$ 37,296
3.6 %
Premiums earned
9,622
9,348
2.9 %
38,090
36,475
4.4 %
Recorded combined ratio
80.8
93.5
(12.7)
85.0
95.0
(10.0)
Underlying combined ratio*
87.6
93.0
(5.4)
88.1
93.4
(5.3)
Underwriting income
1,851
603
NM
5,724
1,810
NM
Policies in force (in thousands)
25,504
24,936
2.3 %
NM = not meaningful
Written and earned premiums grew 3.1% and 2.9%, respectively, compared to the prior year quarter. Auto insurance rate increases resulted in an annualized premium impact of 0.2% in the fourth quarter and 2.6% in 2025.
The recorded auto insurance combined ratio of 80.8 in the fourth quarter of 2025 was a 12.7 point improvement from the prior year quarter, reflecting higher average earned premiums, moderating loss costs and the benefit of non-catastrophe reserve releases. Prior year non-catastrophe reserve reestimates were $719 million in the fourth quarter, a 7.5 point benefit to the combined ratio, reflecting favorable severity development in personal auto injury and physical damage coverages.
The underlying auto insurance combined ratio* of 87.6 in the fourth quarter of 2025 was a 5.4 point improvement from the prior year quarter, as growth in average earned premiums exceeded improving underlying loss and expense trends per policy. The fourth quarter underlying auto insurance combined ratio* would have been 90.4 when adjusted for 2.8 points of favorable development on claims reported in the first three quarters of 2025.
Auto insurance policies in force grew by 2.3% with a 22.8% increase in new business reflecting expanded distribution, increased marketing, new products and sophisticated rating plans. Active brand auto insurance policies grew by 3.3%, which was partially offset by decreases in legacy Esurance and Encompass policies.
Allstate Protection homeowners insurance remains a competitive advantage for Allstate and a growth opportunity. Underwriting profit of $1.8 billion increased from $1.1 billion in the prior year quarter, reflecting lower catastrophes and excellent underlying margins.
Allstate Protection Homeowners Results
As of or for the three months ended December 31,
As of or for the twelve monthsended December 31,
($ in millions, except ratios)
2025
2024
% / pts
Change
2025
2024
% / pts
Change
Premiums written
$ 4,110
$ 3,624
13.4 %
$ 16,565
$ 14,416
14.9 %
Premiums earned
4,055
3,548
14.3 %
15,363
13,360
15.0 %
Recorded combined ratio
55.3
69.8
(14.5)
84.4
90.1
(5.7)
Catastrophe Losses
$ 170
$ 315
(46.0) %
$ 4,087
$ 3,717
10.0 %
Underlying combined ratio*
51.4
59.5
(8.1)
57.9
62.5
(4.6)
Underwriting income
1,813
1,070
69.4 %
2,393
1,319
81.4 %
Policies in force (in thousands)
7,697
7,511
2.5 %
Written premiums and earned premiums increased by 13.4% and 14.3% compared to the prior year quarter, respectively, due to higher average premiums and policy in force growth. A 7.4% increase in Allstate brand homeowners insurance average gross written premium compared to the prior year quarter reflects continued rate increases and higher home replacement costs.
The recorded homeowners insurance combined ratio of 55.3 was 14.5 points below the fourth quarter of 2024, due to higher average earned premiums, lower catastrophe losses and lower underlying losses.
Catastrophe losses of $170 million in the quarter decreased $145 million compared to the prior year quarter due to fewer and less severe events, as well as the absence of any hurricanes and tropical storms.
The underlying combined ratio* of 51.4 improved by 8.1 points compared to the prior year quarter, primarily driven by higher average premiums and favorable non-catastrophe loss trends.
Policies in force increased 2.5% compared to the prior year quarter, primarily driven by 3.2% growth in Allstate brand homeowners insurance policies, offset by a reduction in National General legacy products.
Protection Services protects customers through five businesses where Allstate branded offerings are embedded in other offerings. Revenues increased to $917 million in the fourth quarter of 2025, 3.1% higher than the prior year quarter, primarily due to Protection Plans and Roadside. Adjusted net income of $57 million increased by $7 million compared to the prior year quarter.
Protection Services Results
Three months ended December 31,
Twelve months endedDecember 31,
($ in millions)
2025
2024
% / $
Change
2025
2024
% / $
Change
Total revenues (1)
$ 917
$ 889
3.1 %
$ 3,546
$ 3,237
9.5 %
Protection Plans
609
528
15.3
2,300
1,987
15.8
Dealer Services
148
147
0.7
590
587
0.5
Roadside
61
54
13.0
231
224
3.1
Arity
60
121
(50.4)
266
286
(7.0)
Identity Protection
39
39
—
159
153
3.9
Adjusted net income
$ 57
$ 50
$ 7
$ 218
$ 217
$ 1
Protection Plans
49
37
12
179
157
22
Dealer Services
7
