The Allstate Corporation has reported strong financial results for the fourth quarter of 2025, posting total revenues of $17.3 billion, a 5.1% increase compared with the prior year quarter, while net income reached $3.8 billion, nearly double the $1.9 billion reported in Q4 2024.

For the full year 2025, Allstate delivered total revenues of $67.7 billion, up 5.6% year on year, while net income climbed to $10.2 billion, compared with $4.6 billion in 2024. Adjusted net income for the full year stood at $9.3 billion, generating an adjusted return on equity of 38.3%.

Adjusted net income for the fourth quarter was $3.8 billion, compared to $2.1 billion in the same period last year.

Property-Liability performance strengthens

Allstate’s Property-Liability segment delivered a standout performance in Q4 2025. Earned premiums reached $14.8 billion, representing a 6.1% increase, driven by higher average premiums and growth in policies in force. Underwriting income rose to $4.0 billion, up from $1.8 billion in the prior year quarter.

Premiums written increased 5.9% compared to Q4 2024, reflecting higher average premiums across auto and homeowners insurance, alongside policy growth.

The Property-Liability combined ratio improved significantly to 72.9, a 14.0-point improvement year on year. The improvement was driven by higher earned premiums, favourable non-catastrophe reserve releases, and lower catastrophe losses.

Catastrophe losses in the quarter fell 49% to $209 million, compared with $410 million in Q4 2024.

Policies in force increased 2.0%, led by growth in both auto and homeowners insurance.

Auto and homeowners growth

Allstate Protection auto insurance written and earned premiums increased 3.1% and 2.9%, respectively, in Q4 2025. Auto insurance policies in force rose 2.3%, supported by a 22.8% increase in new business, reflecting expanded distribution, increased marketing, new product offerings, and enhanced rating plans.

The homeowners insurance segment continued to be a key strength. The business generated an underwriting profit of $1.8 billion, up from $1.1 billion in the prior year quarter, driven by lower catastrophe losses and strong underlying margins.

Written and earned premiums in homeowners insurance rose 13.4% and 14.3%, respectively, compared with Q4 2024, reflecting higher average premiums and growth in policies in force.

Customer growth and affordability focus

Tom Wilson, who leads The Allstate Corporation, commented:

“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 added that total policies in force increased to 210.9 million in Q4 2025, a 3% year-over-year increase, driven by “broad distribution and affordable, simple, connected products.”

Other segments and investment income

Protection Services revenues increased to $917 million in Q4 2025, up 3.1% year on year, primarily driven by growth in Protection Plans and Roadside services.

Net investment income for the quarter reached $892 million, an increase of $59 million compared with Q4 2024, reflecting growth in market-based portfolios.