Allstate reported a sharp increase in second-quarter 2026 earnings, driven by stronger underwriting results across its Property-Liability business and improved performance in auto and homeowners insurance.
The Northbrook, Illinois-based insurer posted net income attributable to common shareholders of approximately $3.2 billion for Q2 2026, up nearly 56% from about $2.1 billion in the same period a year earlier.
Underwriting income also increased 56.7% year over year to approximately $2 billion, compared with about $1.3 billionin Q2 2025.
Allstate’s Property-Liability business reported a combined ratio of 86.6, an improvement of 4.5 percentage points from the prior-year quarter. Catastrophe losses declined to $1.7 billion, compared with nearly $2 billion in Q2 2025.
Auto insurance drives underwriting gains
Allstate’s auto segment delivered underwriting income of approximately $1.6 billion, representing a 20.7% increase from the prior-year period.
The segment’s combined ratio improved to 83.3 from 86 a year earlier, supported by prior-year reserve releases and improvements in underlying loss trends.
The insurer also reported an 8.8% increase in new business during the quarter.
Homeowners business returns to profitability
The homeowners segment also improved significantly, with its combined ratio falling from 102 in Q2 2025 to 94.6 in Q2 2026.
The improvement was driven by a 12.8% reduction in catastrophe losses, which fell to approximately $1.4 billion, alongside higher average earned premiums.
New premiums written in homeowners increased 8.1% to approximately $4.8 billion during the quarter.
Strong first half performance
Allstate said its first-half 2026 results reflected continued momentum, with net income attributable to common shareholders reaching approximately $5.7 billion, more than double the $2.6 billion reported during the first six months of 2025.
The results follow a series of strategic moves by Allstate, including increased investment in technology and artificial intelligence initiatives as the insurer focuses on improving pricing, risk management and operational efficiency.
