The Allstate Corporation (ALL) Q4 2025 earnings summary

Executive summary

• Fourth quarter revenues reached $17.3 billion, with full-year revenues at $67.7 billion, and net income for the year at $10.2 billion, driven by improved underwriting, lower catastrophes, and reserve releases.

• Transformative Growth initiatives and expanded distribution led to increased market share, improved affordability, and strong policy growth in both auto and homeowners insurance.

• Premiums for 7.8 million customers were reduced by an average of 17% to offset cost inflation, enhancing customer value.

• Over $2.2 billion was returned to shareholders in 2025, with an 8% dividend increase and a new $4 billion share repurchase program authorized.

• Total policies in force reached 210.9 million in Q4 2025, up 3.0% year-over-year, driven by broad distribution and simple, connected products.

Financial highlights

• Adjusted net income for Q4 was $3.8 billion; full-year adjusted net income was $9.3 billion.

• Auto insurance premiums earned rose 4.4% and homeowners by 15% year-over-year; auto policy growth was 2.3%, homeowners 2.5%.

• Q4 2025 net income applicable to common shareholders was $3.8 billion, up 100.3% year-over-year.

• Book value per common share increased 49.9% to $108.45 at year-end 2025.

• Net investment income rose to $3.4 billion, with a 6.1% total return on market-based assets.

Outlook and guidance

• Continued focus on affordability, cost reduction, and rollout of new products and technology platforms.

• Growth expected in both direct and independent agent channels, with Custom 360 and ASC products expanding to more states.

• Premium reductions and tailored coverage reviews are expected to continue improving affordability and customer retention.