Allstate Corp. first quarter 2025 net income applicable to common shareholders fell more than 52% to $566 million primarily due to a record $3.3 billion of gross catastrophe losses.
The gross loss was partially offset by $1.1 billion of reinsurance recoveries in the quarter for a net of $2.2 billion.
The Northbrook, Illinois-based insurer recorded an increase in its property-liability first quarter combined ratio—97.4 from 93.0 the prior year. Property-liability underwriting income fell nearly 60% compared to Q1 2024 to $360 million.
However, underlying results were favorable. Property-liability premiums written were about $14.3 billion in Q1, an increase of 8.5% over the prior year quarter, primarily driven by higher average premiums. The underlying combined ratio improved 3.8 points to 83.1 for the first three months of 2025.
Allstate’s auto segment, which had for years struggled to keep pace with rising claims costs, continued with positive results and buoyed Q1 results with a 132.5% increased in underwriting income to $816 million and the combined ratio improved 4.7 points to 91.3.
Related: Allstate to ‘Lean Into’ Turnaround in Auto Business, and Grow
Conversely, due to about $1.8 billion of catastrophe losses mostly attributed to California wildfires and March wind events, the Q1 combined ratio in the homeowners business ballooned to 112.3 from 82.1. The segment took an underwriting loss of $451 million compared to a profit of $564 million during the same period in 2024.
Allstate said written premiums in homeowners increased 20.1% compared to the prior year quarter on higher average premium and policies-in-force growth of 2.5%.
Related: Why Not Go Direct on Homeowners, Allstate CEO Asks
In commentary on earnings, CEO Tom Wilson the closing of the sale of Allstate’s employer voluntary benefits business on April 1 for $2 billion also strengthen the insurer’s capital along with $854 million of net investment income for Q1.
Topics Catastrophe Profit Loss
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