Financial Data and Key Metrics Changes - Revenues increased to $17.3 billion in Q3 2025, with year-to-date revenues up 5.8% to $50.3 billion compared to the prior year [5][14] - Net income for Q3 2025 was $3.7 billion, with adjusted net income at $3 billion or $11.17 per share, reflecting strong property liability results and higher investment income [5][15] - Return on equity for the last twelve months was 34.7% [5][30] Business Line Data and Key Metrics Changes - Property liability premiums increased by 6.1% in Q3 2025 and 7.4% for the first nine months of the year [14] - Protection services revenue grew by 12.7% compared to 2024, driven by protection plans [14][18] - Policies in force grew to 209.5 million, a 3.8% increase year-over-year [15] Market Data and Key Metrics Changes - Auto insurance new business is evenly split between Allstate agents, independent agents, and direct from the company, with auto policies in force in active brands increasing by 2.8% compared to the prior year [20][21] - Homeowners policies in force in active brands increased by 3% compared to the prior year [22] Company Strategy and Development Direction - The company aims to increase personal property liability market share and expand customer protection offerings [4] - The transformative growth initiative, now in Phase four, focuses on reducing costs and increasing market share through expanded distribution and improved customer service [6][7] - The introduction of AI technology, including generative AI, is expected to enhance operational efficiency and customer experience [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong margins in auto insurance, with a focus on responding to loss trends [40][42] - The competitive landscape remains challenging, with management noting the importance of maintaining profitability while growing policies in force [76][78] - Inflation is being monitored closely, with adjustments made to the investment portfolio to mitigate risks [110][116] Other Important Information - The company returned $1.6 billion to shareholders through dividends and share repurchases in 2025 [30] - The investment portfolio's book value increased by 39% since Q1 2021, benefiting net investment income [26] Q&A Session Summary Question: Capital management and liquidity at the holding company - Management discussed the flexibility of holding capital at the holding company level for various uses, including share repurchases and acquisitions [33][36] Question: Pricing trends excluding New York and New Jersey - Management indicated that overall pricing is adequate, with minimal rate increases needed, and will respond to loss trends as necessary [40][42] Question: AI technology implementation and its impact - Management highlighted the potential of AI to improve customer interactions and operational efficiency, with ongoing development of the AI ecosystem [46][50] Question: Exclusive agent channel performance - Management noted a reduction in the number of Allstate agents but emphasized increased productivity and the importance of the agent network in the growth strategy [60][62] Question: Market dynamics and pricing competition - Management acknowledged the competitive environment and the need to balance pricing with profitability, emphasizing the company's historical performance in maintaining margins [74][78]

Financial Performance - Allstate's revenues reached $17.255 billion, a 3.8% increase year-over-year[5] - Adjusted net income was $2.976 billion, representing a 184.0% increase[5] - Adjusted net income per diluted common share was $11.17, up by 185.7%[5] - The adjusted net income return on equity was 34.7%, an increase of 8.6 percentage points[5] - Protection Services generated $3.3 billion in premiums earned/other revenue, a 15.4% increase year-over-year[14] - Protection Services adjusted net income trailing twelve months was $211 million, up 23.4% year-over-year[14] Growth & Strategy - Policies in force totaled 209.5 million, a 3.8% increase[5] - Personal property-liability policies in force reached 37.9 million, a 1.4% increase[5] - Property-Liability insurance premiums totaled $14.533 billion, a 6.1% increase[10] - Protection Services premiums reached $720 million, a 12.7% increase[10]

Core Insights - Allstate reported $17 billion in revenue for Q3 2025, a 3.8% year-over-year increase, with an EPS of $11.17 compared to $3.91 a year ago, indicating strong earnings growth despite missing revenue estimates by 2.02% [1] - The company delivered a significant EPS surprise of 36.22%, exceeding the consensus estimate of $8.20 [1] Financial Performance Metrics - The Property-Liability combined ratio was reported at 80.1%, significantly better than the average estimate of 90.3% [4] - The Property-Liability expense ratio was 21.8%, slightly above the estimated 21.7% [4] - The Property-Liability loss ratio was 58.3%, outperforming the estimated 68.4% [4] - Net premiums earned in Property-Liability were $14.53 billion, a 6.1% increase year-over-year, but below the average estimate of $14.76 billion [4] - Net investment income for Property-Liability was $873 million, exceeding the estimate of $740.58 million, representing a 23.3% year-over-year increase [4] - Underwriting income for Property-Liability was reported at $2.89 billion, significantly higher than the average estimate of $1.53 billion [4] - Protection Services net premiums earned were $720 million, a 6.2% year-over-year increase, surpassing the average estimate of $693.4 million [4] - Revenues from Protection Services were $912 million, a 9.6% year-over-year increase, also exceeding the average estimate of $898.63 million [4] Stock Performance - Allstate shares have returned -7.8% over the past month, contrasting with a +1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

In my view, Allstate Corporation ( ALL ) is a suitable investment to buy because their improving fundamentals and strategic maneuvers justify a higher valuation. The current price does not fully reflect the progress they have madeI'm an independent researcher with an academic background in Statistics, Finance, Actuarial Science, and Data Science. I have a strong interest in the insurance sector and am looking to expand my understanding of the industry and the companies within it, as well as share what I lea ...

In my view, Allstate Corporation ( ALL ) is a suitable investment to buy because their improving fundamentals and strategic maneuvers justify a higher valuation. The current price does not fully reflect the progress they have madeI'm an independent researcher with an academic background in Statistics, Finance, Actuarial Science, and Data Science. I have a strong interest in the insurance sector and am looking to expand my understanding of the industry and the companies within it, as well as share what I lea ...

Allstate (ALL) came out with quarterly earnings of $11.17 per share, beating the Zacks Consensus Estimate of $8.2 per share. This compares to earnings of $3.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +36.22%. A quarter ago, it was expected that this insurer would post earnings of $3.32 per share when it actually produced earnings of $5.94, delivering a surprise of +78.92%.Over the last four quarters, the company has su ...

Core Insights - The Allstate Corporation reported strong operating results for Q3 2025, with revenues reaching $17.3 billion, reflecting a 3.8% increase compared to the previous year [1] - The number of policies in force increased to 209.5 million, driven by growth in Protection Plans as well as an increase in homeowners and auto insurance policies [1] Financial Performance - Revenues for Q3 2025 were $17.3 billion, marking a 3.8% year-over-year growth [1] - The increase in policies in force to 209.5 million indicates a positive trend in customer acquisition and retention [1]

The insurance company posted a quarterly profit of $3.75 billion, compared with $1.19 billion a year earlier. ...

Financial Performance - Consolidated net income applicable to common shareholders increased by $2.56 billion to $3.72 billion in Q3 2025, and increased by $3.71 billion to $6.36 billion in the first nine months of 2025 compared to the same periods in 2024, primarily due to higher underwriting income and gains on dispositions [239]. - Total revenues increased by 3.8% to $17.26 billion in Q3 2025 and increased by 5.8% to $50.34 billion in the first nine months of 2025 compared to the same periods in 2024, driven by higher auto and homeowners insurance policies in force and premium rate increases [242]. - Net investment income rose by $166 million to $949 million in Q3 2025 and increased by $298 million to $2.56 billion in the first nine months of 2025 compared to the same periods in 2024, primarily due to improved market-based and performance-based investment results [243]. - Underwriting income for Allstate Protection was $3.04 billion in Q3 2025, up from $555 million in Q3 2024, and totaled $4.69 billion in the first nine months of 2025 compared to $1.32 billion in the same period of 2024 [250]. - Premiums written increased by 6.3% to $15.63 billion in Q3 2025 and increased by 6.7% to $44.97 billion in the first nine months of 2025 compared to the same periods in 2024, reflecting higher auto and homeowners insurance policies in force [251]. Cost Management - Total costs and expenses decreased to $13.16 billion in Q3 2025 from $15.21 billion in Q3 2024, and totaled $43.71 billion in the first nine months of 2025 compared to $44.29 billion in the same period of 2024 [249]. - The expense ratio for Q3 2025 was 21.8%, an increase of 0.3 percentage points from 21.5% in Q3 2024 [298]. - Total underwriting expenses rose by $224 million or 7.6% to $3,173 million in Q3 2025 compared to Q3 2024 [298]. Investment Performance - Total investments reached $82.33 billion as of September 30, 2025, up from $72.61 billion as of December 31, 2024, primarily due to operating and investment cash flows [314]. - Fixed income securities totaled $57.19 billion as of September 30, 2025, an increase from $52.75 billion as of December 31, 2024 [320]. - The company reported a net investment income of $2,557 million for the first nine months of 2025, an increase of 13.2% or $298 million compared to the same period in 2024 [337]. - The company’s total equity securities reached a fair value of $5,338 million as of September 30, 2025, up from $4,463 million at the end of 2024 [336]. Underwriting and Claims - The loss ratio for the third quarter of 2025 improved to 58.3%, compared to 74.9% in the same quarter of 2024, indicating better claims management [262]. - The combined ratio for the third quarter of 2025 was 80.1%, a notable improvement from 96.4% in the third quarter of 2024, reflecting enhanced underwriting performance [262]. - Catastrophe losses for the third quarter of 2025 were $558 million, down from $1.70 billion in the same period of 2024, contributing to improved underwriting results [264]. - The auto loss ratio decreased by 11.3 points to 60.6% in Q3 2025 compared to Q3 2024, driven by increased earned premiums and lower claim frequency [279]. Shareholder Returns - The company repurchased 4.0 million common shares for $805 million during the first nine months of 2025, representing 1.5% of total common shares outstanding at the end of 2024 [350]. - The company paid dividends totaling $773 million in the first nine months of 2025, with a maximum estimated dividend capacity of $3.95 billion through February 2026 [359]. Risk Management - Key risks include actual claim costs exceeding reserves and unexpected increases in claim frequency or severity [364]. - The company emphasizes the importance of managing risks related to cybersecurity and information security controls [364]. - Regulatory limitations on rate increases and underwriting standards could affect financial performance [364]. - The availability and cost of reinsurance are critical factors for the company's operations [364].

Financial Performance - Total revenues for Q3 2025 reached $17.3 billion, a 3.8% increase from the prior year[5] - Net income applicable to common shareholders was $3.7 billion, compared to $1.2 billion in Q3 2024, reflecting strong operating results[5] - Adjusted net income was $3.0 billion, or $11.17 per diluted share, up from $1.0 billion in the prior year quarter[5] - Total revenues for Q3 2025 reached $17,255 million, a 3.8% increase from $16,627 million in Q3 2024[27] - Net income applicable to common shareholders for Q3 2025 was $3,717 million, compared to $1,161 million in Q3 2024, representing a 220.5% increase[27] - Adjusted net income for Q3 2025 was $2,976 million, up from $1,048 million in Q3 2024, reflecting a 184.5% increase[31] - Earnings per common share (diluted) for Q3 2025 was $13.95, significantly higher than $4.33 in Q3 2024, indicating a 222.5% increase[31] Insurance Operations - Policies in force increased to 209.5 million, driven by growth in Protection Plans and auto and homeowners insurance[2] - Property-Liability earned premiums rose to $14.5 billion, a 6.1% increase year-over-year, primarily due to higher average premiums[7] - Underwriting income for Property-Liability was $2.9 billion, compared to $495 million in the prior year quarter[7] - New property-liability products and expanded marketing efforts are expected to drive continued growth in the future[2] - The homeowners insurance combined ratio improved to 71.5, 26.7 points lower than the third quarter of 2024, due to lower catastrophe losses and higher average earned premiums[17] - The combined ratio for Allstate Protection - Auto Insurance decreased to 82.0% in Q3 2025 from 94.8% in Q3 2024, reflecting improved operational efficiency[38] - The combined ratio for Allstate Protection - Homeowners Insurance significantly improved to 71.5% in Q3 2025 from 98.2% in Q3 2024, driven by a reduction in catastrophe losses[39] - The combined ratio for the nine months ended September 30, 2025, was 89.4%, an improvement from 96.9% in the same period of 2024, indicating overall better performance year-over-year[38] Catastrophe Losses - Catastrophe losses decreased by 67.2% to $558 million compared to $1.7 billion in the prior year quarter[6] - Catastrophe losses decreased to $479 million, down $752 million from the prior year quarter, attributed to fewer and less severe events[17] - Catastrophe losses for the Property-Liability segment decreased to (3.8%) in Q3 2025 from (12.4%) in Q3 2024, contributing to the improved combined ratio[38] - The effect of catastrophe losses for Allstate Protection - Homeowners Insurance decreased to (12.3%) in Q3 2025 from (36.2%) in Q3 2024, highlighting a significant reduction in impact from catastrophic events[39] Investment Income - Net investment income increased to $949 million, up $166 million from the prior year quarter, reflecting market-based portfolio growth[19] - Market-based investment income was $780 million, a 10.2% increase compared to the prior year quarter, due to increased asset balances[22] - Net investment income for Q3 2025 was $949 million, an increase from $783 million in Q3 2024, marking a 21.2% rise[27] Shareholder Returns - Total estimated statutory surplus in the insurance companies rose to $22.5 billion, with $624 million returned to common shareholders through share repurchases and dividends[21]