Core Insights - Allstate reported $17.27 billion in revenue for Q4 2025, a 3.4% year-over-year increase, with an EPS of $14.31 compared to $7.67 a year ago, indicating strong earnings growth despite missing revenue estimates by 1.43% [1] Financial Performance - The company delivered an EPS surprise of +45.77%, significantly exceeding the consensus estimate of $9.82 [1] - Allstate's shares have returned -3% over the past month, underperforming the Zacks S&P 500 composite, which increased by +0.9% [3] Key Metrics - Auto Insurance Loss Ratio: 58.9%, better than the average estimate of 67.6% [4] - Auto Insurance Expense Ratio: 21.9%, compared to the average estimate of 22.4% [4] - Homeowners Insurance Loss Ratio: 33.2%, significantly lower than the average estimate of 42.2% [4] - Auto Insurance Combined Ratio: 80.8%, outperforming the average estimate of 90.1% [4] - Property-Liability Net Premiums Earned: $14.78 billion, slightly below the average estimate of $14.92 billion, but a +6.1% year-over-year increase [4] - Underwriting Income for Property-Liability: $4.01 billion, exceeding the average estimate of $2.42 billion [4] - Property-Liability Net Investment Income: $814 million, above the average estimate of $786.45 million, reflecting a +7.5% year-over-year increase [4] - Other Revenue in Property-Liability: $541 million, surpassing the average estimate of $513.77 million, with a +9.7% year-over-year change [4] - Corporate and Other Net Investment Income: $52 million, significantly higher than the average estimate of $37.85 million, showing a +116.7% year-over-year increase [4] - Underwriting Income for Homeowners: $1.81 billion, exceeding the average estimate of $1.47 billion, with a +69.4% year-over-year change [4] - Property and Casualty Insurance Premiums Revenue: $15.51 billion, slightly below the average estimate of $15.64 billion, but a +6.3% year-over-year increase [4] - Underwriting Income for Auto: $1.85 billion, significantly higher than the average estimate of $969.33 million, reflecting a +207% year-over-year increase [4]

Core Viewpoint - Allstate reported quarterly earnings of $14.31 per share, significantly exceeding the Zacks Consensus Estimate of $9.82 per share, and showing a year-over-year increase from $7.67 per share, indicating strong performance in the latest quarter [1] Financial Performance - The company achieved an earnings surprise of +45.77% for the quarter, following a previous surprise of +36.22% when it reported earnings of $11.17 per share against an expectation of $8.2 per share [1][2] - Allstate's revenues for the quarter were $17.27 billion, which fell short of the Zacks Consensus Estimate by 1.43%, but represented an increase from $16.71 billion in the same quarter last year [2] Stock Performance - Allstate shares have declined approximately 3.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.1% [3] - The current Zacks Rank for Allstate is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $6.91, with projected revenues of $17.75 billion, and for the current fiscal year, the EPS estimate is $24.20 on revenues of $72.77 billion [7] - The trend of earnings estimate revisions for Allstate was mixed prior to the earnings release, which may change following the latest results [6] Industry Context - The Insurance - Property and Casualty industry, to which Allstate belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

NORTHBROOK, Ill., Feb. 4, 2026 /PRNewswire/ -- The Allstate Corporation (NYSE: ALL) today reported financial results for the fourth quarter of 2025. "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 inter ...

Financial Performance - Total revenues for Q4 2025 were $17.3 billion, an increase of $839 million or 5.1% compared to Q4 2024[4] - Net income applicable to common shareholders for Q4 2025 was $3.8 billion, a 100.3% increase from $1.9 billion in the prior year quarter[4] - Adjusted net income for the full year 2025 was $9.3 billion, generating an adjusted net income return on equity of 38.3%[4] - Total revenues for Q4 2025 reached $17,345 million, an increase of 5% from $16,506 million in Q4 2024[27] - Net income applicable to common shareholders for Q4 2025 was $3,803 million, compared to $1,899 million in Q4 2024, representing a 100.5% increase[27] - Adjusted net income for Q4 2025 was $3,788 million, up from $2,062 million in Q4 2024, reflecting an 83.5% increase[31] - Earnings per common share (diluted) for Q4 2025 was $14.37, significantly higher than $7.07 in Q4 2024[31] Insurance Premiums and Policies - Total policies in force increased to 210.9 million, up 3.0% from the prior year, driven by broad distribution and affordable products[4] - Property and casualty insurance premiums increased to $15,511 million in Q4 2025, up 6.3% from $14,591 million in Q4 2024[27] - Homeowners insurance premiums written increased by 13.4% in Q4 2025, reflecting higher average premiums and policy growth[10] Investment Income - Net investment income for Allstate Investments was $892 million, an increase of $59 million or 7.1% year-over-year, primarily due to market-based portfolio growth[16] - Market-based investment income was $804 million, a 10.6% increase from the prior year quarter, reflecting growth in asset balances to $73.4 billion[20] - Net investment income for Q4 2025 was $892 million, an increase from $833 million in Q4 2024[27] Combined Ratios and Underwriting Performance - The recorded combined ratio for Property-Liability was 72.9 in Q4 2025, improving by 14.0 points from the prior year quarter[6] - The underlying combined ratio for Property-Liability improved to 76.6% in Q4 2025 from 83.0% in Q4 2024, indicating a positive trend in underwriting performance[36] - The combined ratio for Allstate Protection - Auto Insurance decreased to 80.8% in Q4 2025 from 93.5% in Q4 2024, reflecting improved operational efficiency[38] - The combined ratio for Allstate Protection - Homeowners Insurance significantly improved to 55.3% in Q4 2025 from 69.8% in Q4 2024, driven by lower catastrophe losses[39] - The combined ratio for Property-Liability for the twelve months ended December 31, 2025, was 85.2%, a significant improvement from 94.3% in 2024[38] Shareholder Returns - The common dividend will increase to $1.08 per share, with a $4.0 billion share repurchase program to be initiated[2] - Over $2.2 billion was returned to shareholders in 2025 through share repurchases and dividends, with the common shareholder dividend set to increase to $1.08[18] Total Assets and Equity - Total estimated statutory surplus increased to $23.0 billion, with $7.5 billion in assets at the holding company[18] - Total assets rose to $119.758 billion, up from $111.617 billion in the previous year[25] - Total Allstate shareholders' equity increased to $30.610 billion, compared to $21.442 billion in the prior year[25] Catastrophe Losses - Catastrophe losses for homeowners insurance decreased to $170 million in Q4 2025, down $145 million from the prior year quarter[14] - Catastrophe losses for Property-Liability decreased to (1.4%) in Q4 2025 compared to (2.9%) in Q4 2024, contributing to the improved combined ratio[38] - The effect of catastrophe losses for Allstate Protection - Homeowners Insurance decreased to (4.2%) in Q4 2025 from (8.9%) in Q4 2024, positively impacting the overall performance[39]

Group 1 - Allstate Corporation (NYSE: ALL) is considered one of the best cheap stocks to buy for 2026, with an upcoming earnings conference call scheduled for February 5, 2026 [1] - BMO Capital analyst Michael Zaremski raised the price target on Allstate to $249 from $244, maintaining an Outperform rating, due to lower estimated reinsurance costs following lighter catastrophe loss levels in the second half of 2025 [4] - Allstate reported estimated pre-tax catastrophe losses for Q4 2025 of $209 million, a significant decrease from $1.99 billion in Q2 2025, indicating a slowdown in severe weather events and natural disasters [5] Group 2 - The updated price target of $249 corresponds to approximately 10.7 times BMO's projected 2026 earnings per share for Allstate, aligning with the company's 17-year average forward price-to-earnings ratio [6] - Mizuho also raised its price target on Allstate to $255 from $254 while maintaining an Outperform rating, following updates to its financial models for the insurance sector [7] - Allstate provides a range of insurance products, including property and casualty insurance, life insurance, and retirement solutions, supported by a broad distribution network [8]

Group 1 - The Allstate Corporation (NYSE:ALL) has one of the lowest forward PE ratios among stocks, with BMO Capital raising its price target to $249 from $244 while maintaining a Buy rating [1][4] - BMO's revision is attributed to lower expected reinsurance costs due to reduced catastrophe loss rates in the latter half of 2025, with Allstate reporting major catastrophe losses of $209 million in Q4, amounting to $165 million post-tax [4][5] - The losses included $46 million in November and $80 million in December, and BMO noted double-digit drops in property catastrophe reinsurance costs at recent January 1 renewals [5] Group 2 - The Allstate Corporation provides a range of insurance services and products, including protection, health, property, casualty insurance, consumer protection plans, roadside assistance, and analytics solutions [5]

Core Viewpoint - Analysts project that Allstate (ALL) will report quarterly earnings of $9.82 per share, reflecting a 28% year-over-year increase, with revenues expected to reach $17.52 billion, a 4.9% increase from the same quarter last year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.9%, indicating analysts' reassessment of their initial forecasts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Key Metrics Projections - Analysts estimate 'Property-Liability- Net Investment Income' at $786.45 million, a 3.9% increase year-over-year [5]. - 'Property-Liability- Net Premiums Earned' is projected to be $14.92 billion, reflecting a 7.1% year-over-year change [5]. - 'Property-Liability- Other Revenue' is expected to reach $513.77 million, indicating a 4.2% increase from the prior year [6]. - The consensus for 'Corporate and Other- Net Investment Income' stands at $37.85 million, suggesting a significant 57.7% year-over-year increase [6]. Ratios and Performance Metrics - The estimated 'Allstate Protection - Auto Insurance - Combined Ratio' is 90.0%, down from 93.5% in the same quarter last year [7]. - 'Allstate Protection - Auto Insurance - Expense Ratio' is expected to be 22.4%, compared to 24.2% a year ago [7]. - The average prediction for 'Allstate Protection - Homeowners Insurance - Loss Ratio' is 42.2%, down from 46.9% year-over-year [8]. - The combined assessment suggests 'Allstate Protection - Auto Insurance - Loss Ratio' will be 67.6%, compared to 69.3% last year [8]. - Analysts forecast 'Allstate Protection - Homeowners Insurance - Combined Ratio' at 64.1%, down from 69.8% year-over-year [8]. - 'Allstate Protection - Homeowners Insurance - Expense Ratio' is projected to reach 22.0%, compared to 22.9% in the same quarter last year [9]. - The 'Property-Liability - Combined Ratio' is expected to be 82.7%, down from 86.9% year-over-year [9]. Policies in Force - Analysts predict 'Allstate Protection Homeowners - Policies in force' will reach 7.70 million, an increase from 7.51 million reported in the same quarter last year [10]. Stock Performance - Over the past month, Allstate shares have declined by 4.7%, while the Zacks S&P 500 composite has increased by 0.9% [10].

Core Insights - The Allstate Corporation is scheduled to report its fourth-quarter 2025 results on February 4, 2026, with earnings estimated at $9.53 per share and revenues of $17.52 billion [1] Earnings Estimates - The fourth-quarter earnings estimate has seen four upward revisions and one downward revision in the past month, indicating a year-over-year earnings increase of 24.3% and a revenue increase of 4.9% [2] - For the full year 2025, the revenue estimate is $68.54 billion, reflecting a 6.5% year-over-year rise, while the EPS estimate is $29.81, indicating a significant year-over-year increase of 62.7% [3] Earnings Performance History - Allstate has a strong track record of exceeding earnings estimates, having beaten the consensus in each of the last four quarters with an average surprise of 47.3% [3] Earnings Prediction Model - The model predicts a likely earnings beat for Allstate, supported by a positive Earnings ESP of +6.59% and a Zacks Rank of 3 (Hold) [4] Factors Influencing Q4 Results - The Zacks Consensus Estimate for net premiums earned suggests a year-over-year growth of 7.2%, while the model estimate indicates an 8.4% increase [5] - Net investment income is expected to grow by 5.1% year-over-year from $833 million, driven by higher yields from fixed-income securities [6] - Underwriting income from Property-Liability is projected to rise by 32% year-over-year, with a combined ratio improving to 82.7% from 86.9% [6] - Auto underwriting income is expected to increase to $969.3 million from $603 million a year ago, with the combined ratio improving to 90.1% from 93.5% [7] Cost and Expense Outlook - Total costs and expenses are projected to increase by more than 8% year-over-year due to higher operating costs and claims expenses [8] - The adjusted net income from the Protection Services business is expected to decline by 0.7% year-over-year [8]

Core Viewpoint - Chubb (CB) has been identified as a top investment opportunity due to its consistent underwriting discipline, which has allowed it to outperform peers over the past decade [1]. Company Analysis - Chubb has demonstrated strong performance in the insurance sector, attributed to its steady underwriting practices [1]. - The company is part of a broader analysis conducted by a group focused on cash flows and capital access, indicating a strategic approach to investment [1]. Industry Context - The insurance and reinsurance sectors are highlighted, with a focus on the importance of underwriting discipline in achieving superior performance [1].

Core Viewpoint - The market anticipates Allstate (ALL) will report a year-over-year increase in earnings driven by higher revenues when it releases its results for the quarter ended December 2025 [1] Earnings Expectations - Allstate is expected to post quarterly earnings of $9.53 per share, reflecting a year-over-year increase of +24.3% [3] - Revenues are projected to be $17.52 billion, which is an increase of 4.9% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 0.93% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for Allstate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +6.59% [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10] - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10] Historical Performance - In the last reported quarter, Allstate was expected to post earnings of $8.2 per share but actually delivered $11.17, resulting in a surprise of +36.22% [13] - Over the last four quarters, Allstate has consistently beaten consensus EPS estimates [14] Industry Context - Another player in the insurance sector, RenaissanceRe (RNR), is expected to report earnings of $10.59 per share for the same quarter, indicating a year-over-year change of +31.4% [18] - RenaissanceRe's revenues are expected to be $2.95 billion, down 0.3% from the previous year [19]