Allstate Corp. second quarter 2025 net income applicable to common shareholders was about $2.1 billion, far exceeding the $301 million booked for the same quarter a year ago.
The result this year reflects an after tax gain of $643 million from Allstate’s sale of its employer voluntary benefits business to StanCorp Financial Group in a $2 billion cash deal announced about a year ago.
Allstate absorbed about $2 billion in catastrophe losses in Q2 compared to about $2.1 billion a year ago during the same time.
The Northbrook, Illinois-based insurer recorded a 10-point improvement in its property-liability Q2 combined ratio to 91.1. Property-liability underwriting income was about $1.3 billion compared to a loss of $145 million a year ago. Net written premiums in property-liability went up 5.4% to about $15 billion, drive by higher average premiums, the insurer said.
Allstate’s auto segment turned in underwriting income of about $1.3 billion compared to $370 million for Q2 2024. The combined ratio here was 86—about a 10-point positive swing from last year. The ratio was favorably impacted by $415 million in favorable reserve developments.
Allstate said its auto policy count continues to grow thanks to expanded distribution, increased marketing, new products, and rating plans. New-business results were impacted by actions taken in New York and New Jersey, where Allstate has pending rate requests that could open these markets, it said.
The homeowners lines paid out about $1.6 billion in catastrophe losses during the quarter, which was about the same amount as last year. The Q2 combined ratio for the business improved to 102 from 111.5 for Q2 2024, and the underlying combined ratio improved nearly 5 points to 58.6.
Net written premiums in homeowners increased 14.3% to about $4.4 billion also due to higher average premium.
For the first half, Allstate’s net income increased 77.5% to about $2.6 billion despite Q1 2025 net income dropping more than 52% to $566 million due to record catastrophe losses primarily from the California wildfires.
Topics Profit Loss Auto
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