The Allstate Corporation published its financial results for the fourth quarter of 2025, reporting $17.3 billion in total revenues, 5.1% higher than the prior year quarter, and a net income of $3.8 billion, which compares to the $1.9 billion seen in the same period last year.
The insurer also reported its financial results for the full year 2025, with total revenues seeing a 5.6% increase, to $67.7 billion, compared to the year prior. Net income stood at $10.2 billion, which compares to the $4.6 billion reported in 2024.
Adjusted net income for Q4 2025 was $3.8 billion, compared to the $2.1 billion seen in Q4 2024. The 2025 adjusted net income was $9.3 billion, generating an adjusted net income return on equity of 38.3%.
Property-Liability earned premiums reached $14.8 billion in Q4, a 6.1% increase 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.
Premiums written increased 5.9% compared to Q4 2024, 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, favourable non-catastrophe reserve releases and lower catastrophe losses.
Catastrophe losses in Q4 2025 dropped 49%, totalling $209 million, compared to the $410 million seen in Q4 2024.
Policies in force increased by 2.0%, led by growth in auto and homeowners insurance policies.
Tom Wilson, who leads The Allstate Corporation, said:“Allstate had a terrific year by better serving customers and making protection more affordable. 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.”
Wilson further noted that total policies in force climbed to 210.9 million in Q4, a 3% year-over-year increase. This was driven by “broad distribution and affordable, simple, connected products.”
Allstate Protection auto insurance written and earned premiums grew 3.1% and 2.9% in Q4 2025, respectively, compared to the prior year quarter.
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.
Allstate Protection homeowners insurance continues to be a “competitive advantage.” The segment delivered an underwriting profit of $1.8 billion, up from $1.1 billion in the prior year quarter, reflecting lower catastrophes and excellent underlying margins, the company noted.
Written premiums and earned premiums increased by 13.4% and 14.3% compared to Q4 2024 respectively, due to higher average premiums and policy in force growth.
Protection Services’ revenues increased to $917 million in Q4 2025, 3.1% higher than the prior year quarter, primarily due to Protection Plans and Roadside.
Finally, Allstate reported net investment income of $892 million in Q4 2025, which increased by $59 million from the prior year quarter primarily due to market-based portfolio growth.
