Allstate Reports Strong Earnings and Increased Growth
NORTHBROOK, Ill., April 29, 2026 /PRNewswire/ -- The Allstate Corporation (NYSE: ALL) today reported financial results for the first quarter of 2026.
"Allstate's strategy and execution capabilities generated strong earnings and increased growth in the first quarter," said Tom Wilson, who leads The Allstate Corporation. "Revenues were $16.9 billion and net income was $2.4 billion. Policies in force reached 212 million, reflecting increased growth in auto and homeowners insurance and Protection Plans. The Property-Liability combined ratio was strong, and the underlying combined ratio* improved in all personal lines products and brands. Investment income increased by 9.8%, reflecting portfolio growth and higher fixed income yields. Adjusted net income* was $2.8 billion, or $10.65 per diluted common share."
"The broad set of competitive tools created through Transformative Growth is driving strong performance," continued Wilson. "Market share of auto and homeowners insurance increased in many states due to a comprehensive approach of more affordable prices, new products, expanded benefits, bundled offerings, lower expenses, sophisticated analytics and increased marketing. This positioned Allstate and independent agents and direct distribution to capture a record amount of new business in the quarter. Retention losses were slightly lower reflecting last year's focus on improving customer experience. Protection offerings were also broadened with Protection Services policies increasing over the prior year. Shareholders benefited from strong earnings, higher dividends and increased share repurchases," concluded Wilson.
First Quarter 2026 Results
The Allstate Corporation Consolidated Highlights
As of or for the three months
ended March 31,
($ in millions, except per share data and ratios)
2026
2025
% / pts
Change
Consolidated revenues
$ 16,941
$ 16,452
3.0 %
Net income applicable to common shareholders
2,428
566
NM
per diluted common share
9.25
2.11
NM
Adjusted net income*
2,797
949
NM
per diluted common share*
10.65
3.53
NM
Return on Allstate common shareholders' equity (trailing twelve months)
Net income applicable to common shareholders
48.4 %
21.4 %
27.0
Adjusted net income*
44.4 %
23.7 %
20.7
Common shares outstanding (in millions)
257.8
265.1
(2.8) %
Book value per common share
$ 113.52
$ 74.61
52.2 %
Total policies in force (in thousands) (1)
212,052
206,898
2.5 %
NM = not meaningful
(1)
Excludes policies in force related to the employer voluntary benefits and group health businesses sold in 2025.
*
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 Results
As of or for the three months
ended March 31,
($ in millions)
2026
2025
% / pts
Change
Premiums written
$ 14,625
$ 14,297
2.3 %
Premiums earned
$ 14,802
$ 14,027
5.5 %
Recorded combined ratio
82.0
97.4
(15.4)
Underlying combined ratio*
80.3
83.1
(2.8)
Catastrophe losses
$ 1,240
$ 2,202
(43.7) %
Underwriting income
$ 2,658
$ 360
NM
Policies in force (in thousands)
38,576
37,712
2.3 %
NM = not meaningful
Allstate Protection Auto Results
As of or for the three months
ended March 31,
($ in millions, except ratios)
2026
2025
% / pts
Change
Premiums written
$ 9,850
$ 9,848
— %
Premiums earned
$ 9,547
$ 9,347
2.1 %
Recorded combined ratio
81.9
91.3
(9.4)
Underlying combined ratio*
89.5
91.2
(1.7)
Underwriting income
$ 1,729
$ 816
111.9 %
Policies in force (in thousands)
25,758
25,100
2.6 %
Allstate Protection Homeowners Results
As of or for the three months
ended March 31,
($ in millions, except ratios)
2026
2025
% / pts
Change
Premiums written
$ 3,741
$ 3,453
8.3 %
Premiums earned
$ 4,164
$ 3,657
13.9 %
Recorded combined ratio
83.5
112.3
(28.8)
Catastrophe Losses
$ 1,046
$ 1,824
(42.7) %
Underlying combined ratio*
60.5
62.4
(1.9)
Underwriting income (loss)
$ 685
$ (451)
NM
Policies in force (in thousands)
7,739
7,549
2.5 %
NM = not meaningful
Protection Services Results
Three months ended March 31,
($ in millions)
2026
2025
% / $
Change
Total revenues (1)
$ 922
$ 860
7.2 %
Protection Plans
613
540
13.5
Roadside
63
55
14.5
Dealer Services
148
146
1.4
Identity Protection
40
40
—
Arity
58
79
(26.6)
Adjusted net income (loss)
$ 47
$ 55
$ (8)
Protection Plans
41
45
(4)
Roadside
12
11
1
Dealer Services
5
4
1
Identity Protection
1
1
—
Arity
(12)
(6)
(6)
(1) Excludes net gains and losses on investments and derivatives.
Allstate Investment Results
Three months ended March 31,
($ in millions, except ratios)
2026
2025
$ / pts
Change
Net investment income
$ 938
$ 854
$ 84
Market-based (1)
791
719
72
Performance-based (1)
207
196
11
Net gains (losses) on investments and derivatives
$ (405)
$ (349)
$ (56)
Change in unrealized net capital gains and losses, pre-tax (2)
$ (664)
$ 540
$ (1,204)
Total return on investment portfolio (2)
(0.2) %
1.4 %
(1.6)
Total return on investment portfolio (2) (trailing twelve months)
4.2 %
4.7 %
(0.5)
(1)
Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses.
(2)
Includes investments held for sale.
Proactive Capital Management
"Allstate's active capital management continues to create shareholder value," said John Dugenske, Interim Chief Financial Officer and President, Investments and Corporate Strategy. "Operating results generated an adjusted net income return on equity* of 44.4% over the last year. Increased capital was deployed to investment opportunities, and $881 million of cash was provided to shareholders through dividends and share repurchases," concluded Dugenske.
Visit www.allstateinvestors.com for additional information about Allstate's results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, April 30. Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.
Forward-Looking Statements
This news release contains "forward-looking statements" that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like "plans," "seeks," "expects," "will," "should," "anticipates," "estimates," "intends," "believes," "likely," "targets" and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.
About Allstate
The Allstate Corporation (NYSE: ALL) protects people from life's uncertainties with affordable, simple and connected protection for autos, homes, electronic devices and identities. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online and at the workplace. Allstate has more than 212 million policies in force and is widely known for the slogan "You're in Good Hands with Allstate." For more information, visit www.allstate.com.
THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
($ in millions, except par value data)
March 31,
2026
December 31,
2025
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $59,338 and $58,730)
$ 59,060
$ 59,115
Equity securities, at fair value (cost $10,354 and $8,026)
10,431
8,398
Mortgage loans, net
868
879
Limited partnership interests
8,946
8,844
Short-term, at fair value (amortized cost $4,707 and $4,888)
4,705
4,887
Other investments, net
1,150
1,114
Total investments
85,160
83,237
Cash
697
678
Premium installment receivables, net
11,648
11,474
Deferred policy acquisition costs
6,070
6,163
Reinsurance and indemnification recoverables, net
8,422
8,501
Accrued investment income
656
708
Deferred income taxes
12
—
Property and equipment, net
606
627
Goodwill
3,118
3,118
Other assets, net
7,583
5,252
Total assets
$ 123,972
$ 119,758
Liabilities
Reserve for property and casualty insurance claims and claims expense
$ 41,320
$ 41,079
Unearned premiums
28,863
29,080
Claim payments outstanding
1,473
1,419
Deferred income taxes
—
227
Other liabilities and accrued expenses
13,238
9,874
Debt
7,491
7,490
Total liabilities
92,385
89,169
Equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized,
82.0 thousand shares issued and outstanding, $2,050 aggregate liquidation preference
2,001
2,001
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 258
million and 260 million shares outstanding
9
9
Additional capital paid-in
4,169
4,158
Retained income
64,540
62,393
Treasury stock, at cost (642 million and 640 million shares)
(38,820)
(38,206)
Accumulated other comprehensive income (loss):
Unrealized net capital gains and losses
(221)
297
Unrealized foreign currency translation adjustments
(83)
(55)
Unamortized pension and other postretirement prior service credit
10
11
Discount rate for reserve for future policy benefits
2
2
Total accumulated other comprehensive (loss) income
(292)
255
Total Allstate shareholders' equity
31,607
30,610
Noncontrolling interest
(20)
(21)
Total equity
31,587
30,589
Total liabilities and equity
$ 123,972
$ 119,758
THE ALLSTATE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
($ in millions, except per share data)
Three months ended
March 31,
2026
2025
Revenues
Property and casualty insurance premiums
$ 15,553
$ 14,698
Accident and health insurance premiums and contract charges
136
487
Other revenue
719
762
Net investment income
938
854
Net gains (losses) on investments and derivatives
(405)
(349)
Total revenues
16,941
16,452
Costs and expenses
Property and casualty insurance claims and claims expense
9,185
10,815
Accident, health and other policy benefits
76
333
Amortization of deferred policy acquisition costs
2,178
2,087
Operating costs and expenses
2,225
2,245
Pension and other postretirement remeasurement (gains) losses
19
78
Restructuring and related charges
5
16
Amortization of purchased intangibles
47
59
Interest expense
98
100
Total costs and expenses
13,833
15,733
Income from operations before income tax expense
3,108
719
Income tax expense
650
123
Net income
2,458
596
Less: Net income attributable to noncontrolling interest
1
1
Net income attributable to Allstate
2,457
595
Less: Preferred stock dividends
29
29
Net income applicable to common shareholders
$ 2,428
$ 566
Earnings per common share:
Net income applicable to common shareholders per common share - Basic
$ 9.36
$ 2.13
Weighted average common shares - Basic
259.4
265.3
Net income applicable to common shareholders per common share - Diluted
$ 9.25
$ 2.11
Weighted average common shares - Diluted
262.6
268.8
Definitions of Non-GAAP Measures
We believe that investors' understanding of Allstate's performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Adjusted net income (loss) is net income (loss) applicable to common shareholders, excluding:
Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income.
We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company's ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of net gains and losses on investments and derivatives, pension and other postretirement remeasurement gains and losses, amortization or impairment of purchased intangibles, gain or loss on disposition and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Net gains and losses on investments and derivatives, and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Gain or loss on disposition is excluded because it is non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management's performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business.
The following tables reconcile net income (loss) applicable to common shareholders and adjusted net income (loss). Taxes on adjustments to reconcile net income (loss) applicable to common shareholders and adjusted net income (loss) generally use a 21% effective tax rate.
($ in millions, except per share data)
Three months ended March 31,
2026
2025
2026
2025
Consolidated
Per diluted common share
Net income applicable to common shareholders
$ 2,428
$ 566
$ 9.25
$ 2.11
Net (gains) losses on investments and derivatives
405
349
1.54
1.30
Pension and other postretirement remeasurement (gains) losses
19
78
0.07
0.29
Amortization of purchased intangibles
47
59
0.18
0.22
Gain on disposition
(6)
—
(0.02)
—
Income tax expense (benefit)
(96)
(103)
(0.37)
(0.39)
Adjusted net income *
$ 2,797
$ 949
$ 10.65
$ 3.53
Adjusted net income (loss) return on Allstate common shareholders' equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders' equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on Allstate common shareholders' equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average Allstate common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders' equity primarily applicable to Allstate's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and return on Allstate common shareholders' equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on Allstate common shareholders' equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on Allstate common shareholders' equity from return on Allstate common shareholders' equity is the transparency and understanding of their significance to return on common shareholders' equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on Allstate common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders' equity and return on Allstate common shareholders' equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders' equity results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management's utilization of capital. We also provide it to facilitate a comparison to our long-term adjusted net income return on Allstate common shareholders' equity goal. Adjusted net income return on Allstate common shareholders' equity should not be considered a substitute for return on Allstate common shareholders' equity and does not reflect the overall profitability of our business.
The following tables reconcile return on Allstate common shareholders' equity and adjusted net income (loss) return on Allstate common shareholders' equity.
($ in millions)
For the twelve months ended
March 31,
2026
2025
Return on Allstate common shareholders' equity
Numerator:
Net income applicable to common shareholders
$ 12,027
$ 3,927
Denominator:
Beginning Allstate common shareholders' equity
$ 20,054
$ 16,638
Ending Allstate common shareholders' equity (1)
29,606
20,054
Average Allstate common shareholders' equity
$ 24,830
$ 18,346
Return on Allstate common shareholders' equity
48.4 %
21.4 %
($ in millions)
For the twelve months ended
March 31,
2026
2025
Adjusted net income return on Allstate common
shareholders' equity
Numerator:
Adjusted net income *
$ 11,152
$ 4,488
Denominator:
Beginning Allstate common shareholders' equity
$ 20,054
$ 16,638
Less: Unrealized net capital gains and losses
(351)
(819)
Adjusted beginning Allstate common shareholders' equity
20,405
17,457
Ending Allstate common shareholders' equity (1)
29,606
20,054
Less: Unrealized net capital gains and losses
(221)
(351)
Adjusted ending Allstate common shareholders' equity
29,827
20,405
Average adjusted Allstate common shareholders' equity
$ 25,116
$ 18,931
Adjusted net income return on Allstate common shareholders' equity *
44.4 %
23.7 %
(1)
Excludes equity related to preferred stock of $2,001 million for both periods shown.
Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization or impairment of purchased intangibles ("underlying combined ratio") is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year reserve reestimates, excluding catastrophes on the combined ratio, and the effect of amortization or impairment of purchased intangibles on the combined ratio. We believe that this ratio is useful to investors, and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves, which could increase or decrease current year net income. Amortization or impairment of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.
The following tables reconcile the respective combined ratio to the underlying combined ratio. Underwriting margin is calculated as 100% minus the combined ratio.
Property-Liability
Three months ended
March 31,
2026
2025
Combined ratio
82.0
97.4
Effect of catastrophe losses
(8.4)
(15.7)
Effect of prior year reserve reestimates, excluding catastrophes
6.9
1.7
Effect of amortization of purchased intangibles
(0.2)
(0.3)
Underlying combined ratio*
80.3
83.1
Effect of prior year catastrophe reserve reestimates
0.1
(0.1)
Allstate Protection - Auto Insurance
Three months ended
March 31,
2026
2025
Combined ratio
81.9
91.3
Effect of catastrophe losses
(0.9)
(2.2)
Effect of prior year reserve reestimates, excluding catastrophes
8.8
2.5
Effect of amortization of purchased intangibles
(0.3)
(0.4)
Underlying combined ratio*
89.5
91.2
Effect of prior year catastrophe reserve reestimates
—
(0.1)
Allstate Protection - Homeowners Insurance
Three months ended
March 31,
2026
2025
Combined ratio
83.5
112.3
Effect of catastrophe losses
(25.1)
(49.9)
Effect of prior year reserve reestimates, excluding catastrophes
2.3
0.2
Effect of amortization of purchased intangibles
(0.2)
(0.2)
Underlying combined ratio*
60.5
62.4
Effect of prior year catastrophe reserve reestimates
(0.4)
—
SOURCE The Allstate Corporation